Getting A Mortgage While Being Self Employed
Nearly 20% of Canadian income earners work for themselves, and with the gig economy on the rise, that number will continue to grow. Being a small business owner brings many joys. However, when it comes to qualifying for a mortgage, it can be pretty frustrating.
Most financial institutions require self-employed individuals to use their personal income tax assessments to qualify for a mortgage. There are several legitimate ways your accountant can render your net income as a small business owner much lower than your gross income – and this, unfortunately, makes it challenging to qualify for a mortgage by traditional means.
Rest assured, our team of experienced mortgage agents understand your situation and have helped many self-employed clients get a mortgage.
How we will help you through the mortgage process
When you work with Ross Taylor Mortgages, we recognize all that is unique about your business and how it is structured for tax purposes. As a result, we will understand precisely how to present your case to mortgage lenders in a way that positions you in the best way possible.
We will match your circumstances to mortgage lenders who “get it”—those who will perfectly understand your financial and tax situation.
There are no shortcuts to qualify for a mortgage – we will require specific upfront documentation from you.
We will require the following documents:
- Master Business License or Partnership Agreement
- Your personal tax returns (T1 Generals) and notices of assessment (NOA’s) for the past two years
- Six months’ most recent bank statements for your business account
If your business is incorporated, we will also need:
- Articles of Incorporation
- Past two years’ corporate financial statement
- Most recent corporate notice of assessment
Once we have your required documentation, we will match your information to the lenders best suited for your unique circumstances and present you with our assessment of the possibilities.
After this review with you, we will submit your application to the lender we believe will have the best offering, and we will set your expectations in terms of how the process will take and roughly what the terms of the mortgage offer will be.
Whether you’re a passionate entrepreneur just starting out or you’re a seasoned business veteran – we can help you secure a best-fit self-employed mortgage for you.
Tips for getting the best interest rate:
- A clean credit history generally receives the lowest rates available
- Your personal and corporate taxes are up to date and not in arrears
- Proof that you’ve been self-employed for at least two years (GST number or incorporation papers)
- The property you’re interested in purchasing is located near or in a major urban center
Learn more about your self-employed mortgage options today
Purchase a new property or refinance your existing home with simplicity and ease with the support of our trusted mortgage lenders. We promise great rates and excellent service.