Mortgage for self-employed

Been approved to a much lower mortgage than needed?

Your mortgage approval relies on your declared income, while as self employed, you may want to write-off as much as possible.We have ways, acceptable by the banks to address this issue, which is quite common.

Are you self-employed less than two taxable years?

Working with more than 40 lenders and 600+ landing programs, that are updated several times a week, gives us access to diverse choices. We will work an interim solution until you’ll have the 2 years to show.

Have personal or global events affected your last year’s income?

Lenders will usually use your last 2 taxable years. We have some banks and lenders that will be attentive to forced or personal changes and will offer a bridging solutions to help while your business picks up again.

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Being self employed is harder when it comes to mortgages

Government policy changes throughout the years targeted self employed buyers and mortgage owners and as more riskier to the lenders

Therefore as self employed you may find yourself as approved for less of needing to go for an insured mortgage which is more costly. For instance self employed can get up to 90% financing while salaried clients will get 95% loan. Some banks and lenders will offer a slightly higher rate to self employed vs employees. On top of it the way your income is viewed would be much stricter. Fortunately, we have a fantastic rate of approving self employed clients to best terms mortgages.

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Extensive mortgage planning as well as tax consideration

In order to get the best mortgage rate and terms and the needed amount, Your mortgage will need to be planned well and ahead of time. In our process we review all your tax documents and company documents, for the last few years.

When we analyse your income structure as well as your companies’ records, we can come up with a series of recommendations to modify your income or tax structure to allow a better mortgage and further savings. Especially when you buy more rental properties and some on your company’s name. We will work hand in hand with your accountant to achieve your goals. This is why it’s so important to start the process even before you have a property lined up for you.

Learn the process

Your first step will be probably to dive into the needed knowledge about the mortgage process and the different mortgage products. We are here to guide you through the process until you feel confident with all new concepts and terms and ready to to act

Fill up the application

In this phase we lead a comprehensive process that takes in consideration your personal data, as well as any property you have. You’ll collect all documents upfront and we’ll review them to put together a plan for you

Talk to mortgage experts

After reviewing your data and supporting documents, we will meet. Usually it's done electronically (via Zoom for instance). In this meeting we’ll look at all your needs, current and future plans. The outcome would be a customized plan to address those needs

Get approved

We strive to get you pre-qualified, so even before you have a property in mind, you’ll be confident that all your mortgage aspects have been covered and all your documents have been reviewed. This way, when time comes, you’ll be easily approved

Buy your dream home

We have a high rate of getting our clients the house they love. It’s all thanks to a well guided and upfront financing process. When finalizing their decision, our clients enjoy a peace of mind, knowing that their mortgage is guaranteed

Create your own plan. Secure your future.

Complete our short form. We will get back to you shortly with how much we can approve you for and what your monthly payment will be

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Questions about self-employed mortgage? We can help!

Does my mortgage have a higher rate?

Not with all lenders. Some will consider self-employed as eligible to the same rates that employees get and some will see this income as presenting a higher risk, therefore will be priced higher. With access to so many lenders and 600+ landing programs, you’ll get the best offer to accommodate your needs.

Do banks look at my net income or my gross income?

The most common approach is to average the last 2 years of your T4 income, the one shows on line 150 in your tax return documents. We do have lenders that will look at your gross income to support the higher number and take your net income up by 15-20%. On top of it we have lenders that will look at recent invoices to support more income for your mortgage.

I get a salary and T4’s as a salaried employee of my company. Can I be considered an employee and not self employed?

Actually no. You are considered self-employed even if you are a salaried employee of your own company. It means that contrary to an employee that needs to show only a job letter at full-time permanent positions and 2 recent pay stubs, you’ll need to show 2 full taxable years in the same line of business. Let’s face it, there is no one who can write you a job letter but yourself:)

How do banks calculate my income if my last 2 years are very different?

Banks and lenders will look at the last 2 years of your tax documents, like T1 general, NOA’s, T2’s and financial statements. If the most recent year shows higher figures they will use the average of the two years. If the most recent year is lower, they use the lowest most recent year. When the difference between the year is bigger than 20% they will do a special consideration. Unique global event call for special consideration as well.

Will I have the same rate and process if I purchase in the name of my company?

No, It’s a different process and terms. Because when you buy in the name of a company, you, the individual, become a guarantor to your company’s loan, most of our clients prefer to keep purchasing in their personal name. We always compare the scenarios, so if in your specific circumstances there is a value in purchasing in the company's name, we’ll present it to you and will make sure to get you the best deal.

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Focused mortgage approval process

COMPLETE OUR FORM

All it takes 1-2 minutes to send us your form. You can expect a response from us within 24 business hours. We’ll set up time for a quick phone conversation to determine how we can help you. Once we see we can get you the value you need, we will collect all information needed to immediately submit your file to specific lenders.

GET APPROVED

Our process begins with us collecting your supporting documents, things like ID’s, tax documents etc. We need these so that when we contact a lender on your behalf, they will not only approve you, but will also take the next step and confirm your income in order to offer you a fully guaranteed mortgage commitment. Giving us your documents upfront serves you in that we are able to perform a focused search among 40+ lenders and find you a tailored mortgage solution, the best mortgage rate and best mortgage terms.

GET FUNDING

A mortgage can be arranged within very short notice. Our record is set today at 11 hours from initial call to funding for a private mortgage, and 5 business days from the first call until the keys were in our client’s hands, for a conventional mortgage(!). Having said that, it is always better to take the needed time to properly lead a controlled and focused process. We are here with you along the way and long after you conclude it, as we constantly oversee the market to discover opportunities for our clients to cut costs.