I'm considering moving to Canada from Europe and registering as a self employed person. One of the problems I have now is borrowing money. Although my income is well above average, banks over here do not understand my business model, and actually they don't even try to. For those of you living in Canada and working as self employed web publishers - how hard is it to borrow money to buy a house for example?
9:03 pm on Jul 27, 2011 (gmt 0)
No chance :(
Here in Canada as everywhere, you must have something tangible to put as collateral in order to get loan. Even for simple overdraw protection in amount of $100, Bank will require from you to provide your last year Income Tax return.
But then again, we have in here Vinny and Giovanni who will gladly "borrow" you money "no questions asked".
12:41 pm on Jul 28, 2011 (gmt 0)
<slightly off topic> I'm in the UK and my local bank still does not understand what I do even after 16 years of having converted my already well-established business to Net only transactions in 1995, fortunately my international branch is a lot more switched on. </slightly off topic>
1:29 pm on Jul 28, 2011 (gmt 0)
Even for simple overdraw protection in amount of $100, Bank will require from you to provide your last year Income Tax return.
I don't have a problem showing them my Income Tax return or whatever else they would need. Where I am, even if I do this I still have a hard time borrowing money because they do not deem my income as being stable, even though I have been in business many years.
6:54 pm on Jul 28, 2011 (gmt 0)
how hard is it to borrow money to buy a house for example?
If you put down 10% is it not very difficult to get a mortgage. As long as you can show some ability to pay it back. You will have the house to back up the mortgage.
Housing prices in Canada are nearing all time highs. Prices in Vancouver are stupidly expensive if that is where you were thinking of moving to.
If you have any detailed questions about specific areas I would be glad to help. Just pm me.
9:47 am on Jul 29, 2011 (gmt 0)
Perhaps you should incorparte your business and hire yourself as CEO. Then you have a regular paycheck to show and have company shares as a security....