The relation between unusual Mexican-hat band dispersion, ferromagnetism, and ferroelasticity is investigated using a combination of analytical, first-principles, and phenomenological methods. The class of material with Mexican-hat band edge is studied using the α-SnO monolayer as a prototype. Such a band edge causes a van Hove singularity diverging with 1/sqrt[E], and a charge doping in these bands can lead to time-reversal symmetry breaking. Herein, we show that a material with Mexican-hat band dispersion, α-SnO, can be ferroelastic or paraelastic depending on the number of layers. Also, an unexpected multiferroic phase is obtained in a range of hole density for which the material presents ferromagnetism and ferroelasticity simultaneously.