Mortgages For Self-Employed in Toronto, ON
Are you self-employed and find it diffucult to obtain competitive rates for your mortgage? The first issue is the fact that income may not be easy to prove. In many cases self-employed individuals are motivated to expense as much as possible in order to minimize their income taxes payable.
We respect your choice to start your own venture. In and around Toronto, ON, more and more people are discovering the advantages of stated income mortgages—people just like you who are self-employed.
Offering You Options
Just because you're self-employed doesn't mean you should be denied the opportunity to get a loan or buy a home. Keep reading to learn more about the options avaialable to those who are self-employed. In fact, working out a stated income self-employed loan with us is further proof that you are nothing less than the boss. Let us share in that triumph by offering you competitive rates and options that suit your financial lifestyle and budget.
Your Tax Returns Do Not Show Sufficient Income
In order to obtain a self-employed mortgage, most lenders would want to see your personal Notices of Assessment from the past 2-3 years. Those who are able to provide this proof of income can generally access the same mortgage products and rates as traditional borrowers.
If your tax returns don’t show sufficient income to help you qualify for the mortgage, but in reality you make a strong income, then your application is qualified using a “stated income” approach. You must have a good credit history and provide a minimum down payment of 10%. With stated income, lenders are also looking for the “gross income” you report on your tax returns to be consistent to what is being stated. Your net amount on line 150, after all of your business expenses, will likely be much smaller, and that is okay.
As a self-employed with excellent credit, you can enjoy purchasing your primary residence with an “A” lender using 10% down. If there is a big gap between the gross reported and what is stated, it is very likely that the lender will ask for a down payment of 20% or more or you will need to bring in another partner who shows income and good credit to help strengthen your application.
In addition to your Notices of Assessment, some of the other supporting documentation a lender may require for a self-employed mortgage application include:
Financial statements for your business.
HST/GST account statement.
A copy of the GST licence or Article of Incorporation showing you are licensed ( if applicable)
Proof that your down payment is coming from your own resources
Keep in mind that every client situation is different and there will be variations to the rules. Speak with us regarding your particular situation and we can advise of the options available to you.
A new piece of property or opportunity for investment could be yours with a stated income self-employed mortgage option. For more information or to schedule an appointment, call our team today at 647-893-2535
Information provided by Snezhana Todorova, Mortgage Agent, Lic #M13000122. Dominion Lending Centres Mortgage Watch Lic #12044