Mortgages for the Self-Employed

Self Employed Mortgages
If you’re a business owner or self employed, you probably have heard your fair share of ‘no’ when it comes to borrowing for a loan, credit card, or even worse, a mortgage. There are lenders that have excellent mortgages especially for professionals just like you, at very competitive rates. There is no need to put off your first home purchase or pay higher rates because of your career choice! I have been in your shoes, so my understanding of your situation will make the process a positive one.

Tips for the self employed:

  • Make sure you have some credit established, and take good care of it. Unsecured borrowing is a lot harder to qualify for once you move from T4’s to T1’s!
  • Get your NOA’s together. Lenders may take an average of a few years earnings.
  • Make sure your CRA taxes are up to date.
  • Hire a good accountant that specializes in BFS clients (business for self)
  • Have your business documentation readily accessible (name registration, business license)
  • A great credit rating will go a long way.
  • Claiming artificially low earnings for a tax saving benefit can compromise your ability to qualify.
  • Stated income programs do exist but this will need to balance out with the time you’ve been self employed.
  • A larger down payment is required (10% from the standard 5%).
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Did you know:

45% of first time buyers and 33% of repeat buyers use a mortgage broker for their mortgage needs.

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