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What Is Required To Get A Mortgage When You Are Self Employed?

Nothing beats being self-employed and having your own business. Owning a business gives you the pride of being your own boss, ability to take control over your finances and personal freedom. However, it is not always easy for self-employed individuals to get a mortgage.

Why Getting a Mortgage Is Not Easy For The Self-Employed

It is very challenging for self-employed individuals to get a mortgage. Here are few of the reasons why:

  1. Failure to provide convincing proof or evidence of income
  2. Excessive spending by many self-employed individuals in order to reduce their tax liabilities.

Most lenders will ask for a higher downpayment and other documentation if your notice of assessment does not meet the requirements.

 

 

Related Article: Why is Saving Money So Hard?

Self Employed? Looking For a Mortgage?

Find Out How Much You Are Approved For

Requirements:

If you are self-employed and you want to get a mortgage here are a few things you need to have:

  1. Proof of income/notice of assessment for at least 2 years.
  2. Your business’ financial statements
  3. Contracts showing expected revenue for upcoming years
  4. Proof of being the principal owner of the business
  5. Credit score for you and your business.
  6. Proof that your GST and HST is paid in full.
  7. Proof of downpayment. 15%-20% downpayment helps.

If an individual has income tax arrears, they automatically will not qualify for a bank mortgage.  They either keep making installment payments to the CRA or they can get a private loan to pay out the debt and roll everything into a prime mortgage at a later time.

About Hotline Mortgages

With access to a vast network of over 300 lending institutions – including mortgage investment corporations, private lenders, major banks, credit unions, trusts and other national and regional lenders, I have the tools to build a customized mortgage plan, with the features and options that meet your needs.

Specializing in new mortgagesmortgage renewalsmortgage refinancingcredit repair, reverse mortgage and equity take-out.

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