A well established major lender in Canada has brought back their “Stated Income Rental Program” today.
Traditionally, many people who are self-employed have trouble obtaining financing for their own homes, let alone rental properties. With all the different structures of companies and legal deductions for tax purposes it is hard for many to prove their actual incomes. Many lenders do not like to use “retained earnings” or addbacks as income for an individual.
This program being brought back will assist those who cannot readily verify all of their income in purchasing an investment property.
General criteria are as follows:
- Up to 80% LTV with high beacons (680+ generally)
- Proof of self employment needed
- 100% rental offset
- Stated income needs to be “reasonable” for the type of work and size of business
Note that due to the relaxed qualifications rates will be slightly higher and lender fees may be charged.
I would love to hear from all those self-employed people whether this is a program you would use.