Mortgage For Self Employed

As a self-employed individual, you may facing challenges different than those of a normal employee. That is due to the fact that you are considered high risk because of your unpredictable income. With that information in mind here are the most important information lenders will look for from you:

Due to the motivation of many self-employed to reduce their taxable income, providing proof of income can be challenging and can make it difficult for self-employed people to qualify for a mortgage.

There are programs specifically designed for self-employed borrowers who are unable to prove qualified income, and can receive mortgage financing without income verification through our network of lenders.

There are 2 ways a self-employed applicant can qualify for a mortgage loan.

1) Proven income – by qualifying the borrower based on the two to three average income reported to the CRA with the T1 General and NOA.
If you own a business then you would need to present business income tax returns for the past two years.
You also need to present a business license confirming that you have been in business for at least two years.

We can get low rates with this program, similar to those offered to full-time employees.

Some expenses may be able to be added back to your net income in order to increase your mortgage qualification.
For example, one-time legal expense, or soft costs such as rent for home, office, company car, etc.

2) Stated income – Borrowers who do not qualify based on their two-three-year average, even with add backs, or who don’t want to provide financial statements as proof of income, may qualify based on their stated income.
It may not be the same as what is reported to the CRA. Allows borrowers to qualify for a mortgage based on their bank statements rather than their tax returns.
You need to present the last 6-12 business bank statements together with invoices and a business license.

A self employed might need to present a higher credit and larger down payment.

To find out if you qualify for Mortgage For Self-Employed, contact us at 416-900-1425.