You built a business. You manage clients, expenses, payroll, deadlines, and probably at least three things before your first coffee.
Then you apply for a mortgage and the bank looks at one number on your tax return and says:
“Sorry, you don’t qualify.”
Frustrating? Absolutely.
The end of the road? Not necessarily.
We work with lenders that understand self-employed people and allow us to look at more than just the income shown on your personal tax documents.
Because your business is more than one number.
How Can We Help You Qualify?
Some lenders allow us to support your income by looking at the strength of your business and your overall financial picture.
They may consider:
- How long you have been self-employed
- Your business revenue
- The type of work you do
- Your experience in the industry
- Your credit history
- Your down payment and personal savings
- Whether the income being used makes sense for your business
No, we cannot simply pick a number and hope for the best. The income still needs to be reasonable, supportable and acceptable to the lender.
But we may not have to rely only on the income showing on your tax return.
That can make a very big difference.
Self-Employed Mortgage Requirements
Generally, you should have been self-employed for at least two years.
The documents we use will depend on how your business is structured, but they may include:
- Articles of incorporation
- A business licence
- Business bank statements
- Corporate financial statements
- GST/HST returns
- Corporate tax returns
- Contracts or invoices
You will also need a good credit history, personal savings toward your down payment and no outstanding income tax arrears.
Nothing too wild.
We just need enough information to clearly show the lender that your business is established, your income makes sense and you can afford the mortgage.
What About the Down Payment?
Some of these programs may allow you to purchase a home with as little as a 10% down payment.
At least part of the down payment must come from your own personal savings.
Depending on the program, the remaining amount may be allowed from another acceptable source, such as a non-repayable gift from an immediate family member.
We will let you know exactly what is required before you start making offers.
Because the last thing anyone needs is a surprise after finding the perfect house.
Do Self-Employed Mortgages Cost More?
It might. Some programs designed for self-employed buyers may come with a lender fee, a higher mortgage insurance premium or an interest rate that is slightly higher than the lowest rate you see advertised.
But here is the thing: A super-low rate is not especially helpful if the lender will not approve you.
The best mortgage is not always the one with the lowest rate. It is the one that gets you approved, fits comfortably within your budget, and makes sense for your overall financial plan.
We will explain the rate, payment and any fees upfront so you can decide whether the option is worth it.
No surprises. No vague explanations. Just the numbers.
Your Bank Is Not the Only Option
Being self-employed does not make you a risky borrower. It just means your income may need to be understood differently.
We specialize in mortgages for self-employed people and work with lenders that understand business owners, contractors, incorporated professionals and sole proprietors.
So, if the bank has already said no, please do not assume the answer is no everywhere.
You may not need a different home. You may just need a lender that understands your business.
Your Tax Return Is Not the Whole Story!
If you’ve been told you don’t qualify because of your income, let’s chat and see whether there may be another path forward!
