Working for yourself offers many benefits: the pride of ownership, the creativity of entrepreneurship, the freedom to create your own work/life balance. But one downside has been the difficulty associated with qualifying for a mortgage, due to the income verification documentation required by traditional home loan guidelines. Genworth Canada offers a better solution for self-employed homebuyers: the Business For Self Program. Are you your own boss? Here’s how Business For Self can help you realize your dream of home ownership sooner.
This program is designed for self-employed borrowers who are unable to provide traditional income verification but have a proven 2-year history of managing their credit and finances responsibly. Eligible borrowers typically own a small size business for a minimum of two years, which can be confirmed via a third-party arm’s length document. In addition, the borrower is required to declare their annual income and annual business revenue, which should be reasonable based on the industry, length of operation and type of business.
Business For Self was designed for first or second mortgages; requires a down payment towards your home of at least 10%; and the maximum loan amount is capped at $750,000 in Metro Vancouver, Calgary and Toronto, and $600,000 for the rest of Canada.
Before you apply
If you have your eye on homeownership, you can prepare yourself to qualify for Business For Self with these financial fitness steps:
- Save your down payment
Business For Self requires a down payment of 10% of the purchase price of your new home, so be sure you’ve saved an appropriate nest egg for your real estate market.
- Check your credit
Contact Equifax or TransUnion Canada to get your credit report. Clear up any errors, and take any required steps to meet the credit score guidelines for Business For Self. (You can find the details here.)
- Get your documentation ready
Based on your type of business you’ll need to provide the required business documentation as listed on our website to confirm at least two (2) years business-for-self tenure in addition to your most recent years’ Notice of Assessment to confirm the line 150 amount and no income tax arrears.
How to get started
Interested in jumpstarting your journey along the road to home ownership? You’ll find all the details around credit requirements, mortgage rates, amortization options, and other Business for Self guidelines here.