Self-Employed Mortgage
There are great advantages and disadvantages of being self-employed. They enjoy tax write off and as result there documented income appears way lower than what they actually make.
All the Self employed people such as Trucker, Cabbie, Plumber, Contractor, etc. … Have unique circumstances when it comes to securing mortgage loans. Because of tax write-offs, their documented incomes tend to appear much lower than they actually are, which can create complications during the loan application and approval process.
Most of the prime lenders require NOAs for last 2 years to be included with application to get best mortgage products and rates. The documents requirement for a self-employed person is a lot and frustrating at times. If you are not able to provide sufficient income proof documents then you are required to put min 10% as down payment cause you fall under stated income program and you pay a higher premium on mortgage default insurance.
Borrower Requirements
- 10% down payment from own sources
- 2 Years Financial statements for your business or T1 generals in case of contractors
- Proof that your HST and/or GST is paid in full.
- Proof that you are a principal owner in the business.
- A copy of your borrower’s business or GST license or Article of Incorporation showing you is licensed.
The lenders I work with offer self-employed individuals fantastic mortgage options and are willing to accept reasonable estimates of the individuals’ annual incomes. They also provide fast approval and loan turnaround times.
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