Mortgage Self Employed in Ontario
Being self employed can give you flexibility and control over your career, but getting a mortgage may require a different approach to documenting your income.
I’m Wilson D’Souza, Mortgage Agent Level 2 with Mortgage Architects. I help self employed Canadians understand their mortgage options and explore financing solutions based on their income, financial situation, goals and current lending guidelines.
Can self employed people get a mortgage?
Yes. Self employed borrowers can qualify for mortgages, but the documentation and income assessment may be different from those used for traditionally employed borrowers.
Lenders may look at your business income, personal income, financial statements, tax documents and other information to understand your overall financial position.
How long do I need to be self employed to get a mortgage?
The answer can vary depending on the lender, your business history, your income and the strength of your overall application.
Some lenders may consider borrowers with shorter periods of self employment, while others may look for a longer established business history.
How do lenders calculate income for self employed borrowers?
Income assessment can vary between lenders.
Depending on your circumstances, a lender may consider information such as reported taxable income, business income, financial statements and other documentation that supports your ability to make the mortgage payments.
This is one reason why comparing lenders can be important for self employed borrowers.
What documents do self employed borrowers need?
The documents required can vary depending on your situation and the lender.
Common documents may include:
• Personal identification
• Notice of Assessment
• T1 General tax returns
• T4A or other income documents where applicable
• Business registration documents
• Financial statements
• Bank statements
• Proof of business income
• Existing mortgage and debt information
• Property details
The exact documentation will depend on how your business is structured and how your income is reported.
Can I get a mortgage if my taxable income is low?
Possibly.
Some self employed borrowers report lower taxable income because of legitimate business expenses and deductions. This can affect how traditional lenders assess mortgage qualification.
Depending on the circumstances, other mortgage solutions may be available. The key is understanding how different lenders assess self employed income.
Can incorporated business owners get a mortgage?
Yes. Incorporated business owners can qualify for mortgages.
The assessment may consider the structure of the corporation, how income is paid to the borrower, business financial information and the overall financial position of the applicant.
Can I get a mortgage if I recently became self employed?
It may be possible depending on your circumstances.
Your previous employment history, current business income, industry experience, business documentation and overall financial position may all be relevant when assessing your mortgage options.
Can self employed borrowers get mortgage financing for an investment property?
Self employed borrowers may be able to obtain financing for investment or rental properties.
The lender will consider factors such as income, credit, existing debts, property value, rental income where applicable and the overall mortgage application.
What should self employed borrowers consider before applying?
Before applying for a mortgage, it can be helpful to understand:
• How your income is reported
• Your current business income
• Your personal and business debts
• Your credit history
• Your existing mortgage obligations
• Your available down payment or home equity
• The documentation you can provide
• The type of property you are purchasing
• Your short and long term financial goals
Preparing these details in advance can make the mortgage process easier.
How can I find the right mortgage solution when I am self employed?
Every self employed borrower’s situation is different.
I can help you review your income, documentation, existing debts and mortgage goals, and explore mortgage options that may fit your circumstances.
There is no obligation to proceed with a new mortgage.
Let’s review your options
If you are self employed and considering buying a home, refinancing, renewing your mortgage or purchasing an investment property, let’s have a conversation about your situation.
Book a Strategy Call with Wilson D’Souza, Mortgage Agent Level 2 with Mortgage Architects.
