This is an amazing “secret” program for those who are self employed and who own their own company. Those who strategically leave more of their company earnings in the business.
If you have a successful corporation that earns great income and has great NET INCOME AFTER TAX – this could be how you buy your dream home, cottage or rental using both your personal declared income AND the net income in your corp.
Yes – I know – it’s pretty amazing.
Here are the quick notes on the program:
To qualify:
- Must be a permanent resident of Canada and file taxes in Canada
- The company must be owned 100% by the owner or future owners of the Real Estate
Net income used from corp:
- The lenders can use anywhere from 40 to 100% of the Net Income after tax minus dividends
Eligible lending property types:
- Primary residence
- Second home/Vacation home
- Rental property
Min 20% down payment is required
- Lender may want more down
Max 30 yr amortization
Documentation required:
- Last 2 yrs personal T1 generals (all pages)
- Last 2 yrs Notice of Assessments with taxes paid up to date
- Last 2 or 3 yrs business financials prepared by a CA or CPA
Always feel free to contact a professional at mortgages.ca for more details and to determine your eligibility for this program, as well as how it can assist you in securing financing with an A lender, rather than a B lender or alternative lender.