# Mortgage hell



## Eoink15 (Feb 25, 2015)

So I'm newly self employed. And for the last 6 months have been trying to get a mortgage! The big banks have been messing me around only can give me a mortgage with 35% down which is wel over $150k. 

So my question is any alternatives, are mortgage brokers a safe option?


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## 0xCC (Jan 5, 2012)

Yes, mortgage brokers are a safe option (do you have specific concerns?). You probably should have started with one. Being newly self employed will probably be a bit of an issue but a mortgage broker will probably get a better deal for you more quickly than you can yourself.


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## Mortgage u/w (Feb 6, 2014)

Mortgage brokers are definitely a safe option - any may be your only option. How long have you been self-employed?

Problem is your newly self-employed and I don't know any conventional lender that would qualify you. If you're not planning to put at least 20% down, you're out of luck because the insurers will not consider you either. The standard qualification for a self-employed is you must be self-employed for a minimum of 2 years. Exceptions are considered if you were in a similar domaine prior, example; salaried electrician for past 3 years and now you decided to go at it on your own. Bottom line, lenders are looking for income stability. In your case, you have nothing to provide as proof of income (via T4, T5, NOA, T1, T2 etc) if you haven't declared your income yet. 

You'll need a solid co-borrower who can qualify alone. Mortgage brokers may be able to find you alternative lending but DP will be higher and so will the interest rate and additional fees.


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## Eoink15 (Feb 25, 2015)

Yea it's tough! I have been in the same field for a few years now so I have t-30s but not a huge amount of money on them only 30/40k a year. Anyway it looks like I'll have to go to a broker. I have 15% to put down are you saying cmic won't cover that?


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## Mortgage u/w (Feb 6, 2014)

You need to determine how many years you've been self-employed with declared income. If its less than 2 years, the insures won't approve. With 20% down, you may be lucky in finding a lender who will approve you (no insurer).

If you've been self-employed 2 years or more but don't qualify because of your income, then there is a program where you can qualify using a "stated" income. If $50k, $60k or $80k is needed and representative of your domaine, then it can be considered to qualify. Min DP is 10% and insurer premium is higher (5.45% added to loan amount). CMHC no longer offers this product however the 2 other insurers, Genworth and Canada Guaranty, do. You're broker will know which lender deals with them.

Without knowing your full situation, it will be difficult to provide you with the best possible solution.


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## AlMansur (Jan 25, 2016)

Sounds like the Banks are not going to be of much use, I would try the mortgage brokers.
If you have enough history and a decent DP, you'll have much more success with low interest rates. Otherwise, you may have to pay a slightly higher rate, for the higher risk.

Mortgage broker will be your best option.


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## Eoink15 (Feb 25, 2015)

went to a broker today hes recommending a "band aid mortgage/loan" because i am 1. self employed and, 2. because i am doing a fix and flip.
whats your thoughts guys?


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