Harpreet has been self-employed as a consultant for 18 months. She provides invoices showing consistent quarterly payments from major clients. She also has a strong personal credit score. For her to acquire a mortgage, what type of program might a mortgage agent need to explore, given her shorter self-employment history and consistent income flow?

Question: Harpreet has been self-employed as a consultant for 18 months. She provides invoices showing consistent quarterly payments from major clients. She also has a strong personal credit score. For her to acquire a mortgage, what type of program might a mortgage agent need to explore, given her shorter self-employment history and consistent income flow?

Answer options: ✅ A 'Stated Income' or 'Alternative Lending' program for self-employed individuals with less than two years' history, which often requires higher down payments and interest rates.

• A conventional uninsured mortgage, as self-employment income is generally treated the same as salaried income after 12 months.
• A CMHC-insured high-ratio mortgage, given her strong personal credit score.
• A renewal mortgage program, assuming her current lender will overlook the self-employment history.

Correct answer: A 'Stated Income' or 'Alternative Lending' program for self-employed individuals with less than two years' history, which often requires higher down payments and interest rates.

Explanation: Standard lenders typically require a minimum of two years of self-employment history to consider income. For those with less than two years, 'Stated Income' or 'Alternative Lending' programs are often necessary, which have different qualification criteria, as per lender program guidelines.