Mortgages for Entrepreneurs and Self-Employed
There are nearly 1.2 million small businesses in Canada! And among these, the self-employed make up a significant proportion. With so many entrepreneurs and small businesses supporting our economy, why is it so complicated to get a self-employed mortgage in Canada?
One major reason is that being self-employed allows people to invest in their business and write off major expenses. This lowers the amount of income claimed to Canada Revenue on your personal tax returns, which affects how much the bank is willing to loan you for your mortgage.
How Can I help?
I’m self-employed too. I know where you are coming from. There are alternate programs like the Stated Income Program where we can use deposits into bank accounts, or gross up revenue claimed to Canada Revenue, or even “state” your income at a reasonable amount based on your tenure and industry.
I will work with you review your past 2 years of Business Revenues and come up with a mortgage plan that will allow us to capitalize on your revenues, not just the income you claimed personally on your taxes. This program requires a 10% down payment, and is an amazing program for the Self-Employed.
What other Self-Employed Mortgage Options are available?
We work with our self-employed borrowers beyond the standard options for provable income over a period of time. Other documents that we will use as supporting documentation to a mortgage lender can include:
Proof of downpayment from your own resources
Proof of taxes being paid (income tax, GST, for example)
Contracts, purchase orders and sales books that demonstrate revenues in coming years
Corporate documents proving ownership
Company financial documents
Lets work together as we explore your options and the best plan for your self-employed mortgage!