About 3 million Canadians (15% of total population) were reported self-employed according to Statistics Canada in 2018 and this number is steadily increasing each year. Getting a mortgage when you’re self-employed can be little different and more challenging than someone who is on a payroll with corporations.
Below are some options available for our self-employed clients .
Qualify with “A” lenders Based on Your Taxable Income
If you pay yourself a good and steady taxable salary at least for two years and maintain a good credit, you may be able to qualify for a mortgage with a traditional lender or commonly known as A lender (i.e. banks).
Qualify with Alternative Lenders Based on Your Stated Income
For clients who report lower taxable income as a result of higher tax write-offs or not being self-employed for at least two years, alternative lenders might be a good option for them to get their mortgage financing. These lenders use alternative forms of proof for income such as bank statements, invoices and contracts to determine client’s income instead of what is being reported in their tax return for tax purposes.
Private Lenders
Self-employed clients who cannot get qualified from traditional and alternative lenders, we have options for them from private lenders. Private lenders tend to focus on the home equity instead of income or credit worthiness of self-employed clients to lend them money for their home mortgage.
If you are self-employed, get in touch with us and let us help you get a mortgage for your home.
