It isn’t always easy to get a mortgage when you’re self-employed. Your length of time as self-employed, fluctuating income, or significant business expenses that reduce your net income can all affect how lenders view your income. Depending on your credit score and total earnings, you may struggle to get a traditional mortgage with your bank.
If this is the case, don’t stress, there are ways to get a mortgage other than through a bank. Find out more about getting a mortgage when you’re self-employed and what you can do when you don’t qualify at the bank.
The Documents You Will Need
Lenders will still want to review your income, credit score, down payment source, and property
documentation. You will often be asked to provide your personal tax Notice of Assessment documents for the past two years, along with financial statements for your business, and a copy of your Articles of Incorporation or business license and sometimes your business banking statements. Because most self-employed individuals will write off a substantial amount of their expenses, lenders will often use certain guidelines to determine your income which could include add-backs or reviewing deposits and expenses into your business bank accounts.
Rejected By the Bank?
Don’t stress if your bank has declined your mortgage application – they are not the only mortgage lender on the market! Instead, pick up the phone and call a mortgage agent. They have access to all the other mortgage products available through other sources such as alternative and private lenders. Many of these lenders will have more relaxed requirements for self-employed earners, and some will even have specialized programs designed just for you.
We’re Ready to Help
If you are a self-employed earner who is ready to buy a home or who is looking to refinancing or switch your current mortgage, call us at the Mortgage Advisors. Our team of mortgage agents are experts on self-employment and have access to the biggest network of lenders across Canada – not just the big banks. We will match you with the best mortgage solution for your situation, with a rate and terms that you are happy with.
Contact us today to set up a free consultation with one of our BFS mortgage specialists.