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Mortgage Broker News | 15 Aug 2013, 12:00 AM Agree 0
Brokers continue to vent their frustration over securing mortgages for self-employed clients, but are increasingly directing them to write off less of their income, among other successful strategies.
  • JSydneyH | 15 Aug 2013, 08:04 PM Agree 0
    This requirement to test the income of our self-employed clients has nothing to do with their ability to pay for a mortgage - and using a year's worth of bank statements is sufficient proof of income stability. The Harper government is using the mortgage industry to collect more tax for his morally bankrupt government; I don't like it but I have no choice to comply ... for now.

    The Minister of Finance directly intervenes in a free market to threaten the country's largest insurance company and they back down. Why did Manulife cave in to the Minister? Oh yeah, he controls their regulator - OFSI.

    We need to remember this at the next federal election.
  • Vince Gaetano | 16 Aug 2013, 07:10 AM Agree 0
    This article lacks substance to justify the position. Any recommendation to a self-employed individual about increasing net income should come with a cost/benefit analysis.

    One needs to calculate the difference in interest cost between an A-lender rate and ALT-A rate and determine if it makes sense to increase your marginal tax rate to opt for a lower rate. In most cases, the self employed client(s) need to leave the ego at the door, pay the Alt A rate and continue to be tax efficient and minimize taxes owing to our friends in Ottawa.

    Just do the "math" and you will have your answer. Leave the politics out of the forum.
  • Lior, Mortgage Edge | 16 Aug 2013, 09:33 AM Agree 0
    I've definitely been able to push more closings through Genworth as far as BFS goes. The bulk of my business are self-employed so you go with what works. It helps that the underwriter working on my files used to work for Genworth and knows the system to get applications approved... you know who you are and THANK YOU!

    I agree with Vince, there's a lot more to consider than simply asking individuals to declare more income. Given that self-employed individuals are scrutinized more when applying for a mortgage compared to a few years ago, my advice to these people is get the documents ready up front. Don't show up at your broker's office with just a mortgage application. NOAs, T1 Gens, business financials are key to speeding up response time. Make sure to have them ready when you apply.
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