Why do Self-Employed Clients get screwed?

We see it time and time again. Clients that have been in business for a number of years and have good credit often find themselves paying a very high interest rate just because they cannot prove thier income like employed people via a paystub and employment letter.

Imagine always paying you loans and credit cards on time and are running a successful business, yet when you try to arrange a mortgage your bank demands a mountain of paperwork including 2-3 years of T1 Generals, Revenue Canada Notice of Assessments, and so on to verify your income. Or, you turn to a finance company where they don't require so much paperwork, yet you end up paying 18% to 19%! At these rates you'll never pay off your mortgage.

Fortunately, we have a couple of lenders that realize that clients who are self-employed, and have managed their credit wisely, deserve to get low rates just like everone else with good credit. By demonstrating a good credit record clients do not need to provide any income documentation, they only need to prove they have been in business for at least 2 years via a business license or Registry of Joint Stocks.

We have a client that we just refinanced his high interest finance company mortgage and consolidated some of his high interest credit cards and have reduced his monthly payments by over $1500 per month!!