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STATED INCOME MORTGAGES At Mortgage Intelligence we help our clients in achieving homeownership especially for those self employed. The “Stated Income” mortgages are for those self employed persons who are sole proprietors or corporations who write off a lot of their income for tax purposes so that ultimately when they file their person income taxes it shows very little income.   A Notice of Assessment or (NOA) for short is mailed to you from the Canada Revenue Agency once you have filed your personal income taxes. (the blue forms). This can also be recognized as the forms that determine whether or not you owe income taxes or if you are receiving a refund. Lenders use the amount on line 150 to determine a person’s yearly income.   I have a mortgage for that!   There are three mortgage insurers in Canada. Their guidelines are somewhat similar but with a couple of differences.   1. Genworth and Canada Guaranty (CG) will allow a person who has been self employed for longer than 3 years to use the stated income program whereas CMHC will not allow self employed people to do a stated income if they have been in business for longer than 3 years. In other words after 3 years CMHC wants the person in business to be showing an income.   2. Genworth and CG have a higher min credit score than CMHC. 3. Genworth unlike the other 2 insurers will allow half of the 10% downpayment required on a purchase to be gifted from an immediate family member. Special Considerations: Lenders will require more documentation such as business fianancials (accountant prepared), articles of incorporation (if incorporated), up to 12 months of business bank statements. There are some additional forms to be signed by the applicant but overall I try to do as much as possible to make the application process easy.
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