• Self-Employed

  • it's easier than you think

    It's no secret that if you're self-employed it can be challenging to qualify for a mortgage – and you'll often take the first deal offered to you. But, with 20% of people in Canada being self-employed, finding the right mortgage doesn't have to be as hard as you think.

    As an entrepreneur and business owner you may benefit from income tax credits and write-offs on your personal tax returns. This is a great advantage when it comes to your taxable income each year, but it also unfortunately impacts your ability to qualify for mortgages and low rates.

    I can draw, however, on my experience and extensive lender relationships to help you get the best mortgage possible.

     

  • Case Study

  • My client was both self-employed and incorporated and works as a self-employed contractor. In addition, he was getting divorced and needed to find a home for himself and his child. He was turned down by the banks for a mortgage.

    I explained to him that he could proceed one of two ways:

    • Because he was incorporated, I could fully qualify him if he could prove his income through his NOAs and T1 Generals as well as other supporting documentation.
    • If I could not qualify him as such, I would have to qualify him as a stated income applicant, which is more difficult to prove, as different lenders have different requirements.

    A stated income mortgage is one in which the lender fully understands the self-employed income dilemma and accepts a client simply “stating” income on his or her application without showing  net taxable income on a tax return.

    There are three ways to qualify under stated income:

  • Not all stated income deals are funded, mostly due to lack of paperwork and proof of income. My client was successful because he worked with me to provide the required paperwork.

  • Here's what one of my self-employed clients says about how I've helped him secure a mortgage:

  • “I was introduced to Amina by my friend and realtor. She took the time to sit with me and review all of my documents. I was not good at keeping paperwork and I could not prove my income, but Amina was patient and walked me through the process and while it took some time, in the end she was able to get me a mortgage." - Pearson - Brantford, Ontario
  • Are you self-employed and having difficulty getting a mortgage? As an experienced mortgage broker with extensive lender relationships, I can help. Give me a call today at 416-697-5443 or email me at [email protected]

     

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