Local to Norfolk County
Self-employed
mortgages
Find a mortgage that fits how you earn. Whether you run a business, work on contract or earn seasonally, I’ll compare options across lenders and support you through to closing.
Give lenders a clearer picture of your income
Business deductions lower the income on your tax return, and that affects how much you qualify for. Supporting records and certain expense add-backs show lenders what you actually earn.
I’ll check what each lender allows and line up the documents that back your income. If your documents won’t support the amount you need, I’ll tell you what would help and when to apply.
Keep your attention on your business
You have a business to run. I’ll build a checklist around your application, check it for anything missing and handle the follow-up with the lender.
Lenders usually ask for:
- Two years of T1 Generals and Notices of Assessment
- Your business registration or articles of incorporation
- Business financial statements
- Recent business bank statements
Contractors and sole proprietors often need less.
Explore your options across lenders
Lenders assess self-employed income differently, so I’ll find the ones that suit how you earn.
Then I’ll compare your options by:
- Rate
- Fees
- Down payment
- Terms
I’ll explain what each option means for you.
Choose a payment that fits quieter months
Your mortgage needs to work when business slows down, too.
Quieter months
I’ll find a payment range that leaves room for taxes, business costs and savings.
Stronger months
Choose a mortgage that lets you pay extra when earnings are up.
Self-employed mortgage questions
How long do I need to be self-employed to qualify?
Most lenders look for two years of self-employed history and two years of filed taxes. Some consider a shorter track record, especially if you worked in the same field before going out on your own. Tell me when you started and I’ll tell you which lenders will look at it.
What documents will a lender ask for?
That depends on how you earn. The usual list sits under “Keep your attention on your business” above, and I’ll build your checklist around your situation.
My tax return shows a low income. Can I still buy?
Often, yes. Write-offs lower your taxable income without lowering what your business brings in. Some lenders add back certain deductions, and others look at your business deposits instead of your net income. I’ll find the lenders that see what you actually earn.
Do I need a bigger down payment because I’m self-employed?
Not always. With two years of filed taxes and confirmed income, your minimum down payment is the same as other buyers’, starting at 5%. Lower down payments come with insurer rules, so I’ll confirm those before you make an offer. Stated-income and alternative lenders usually ask for 10% or 20%.
Will my rate be higher?
Not necessarily. If your tax returns support the income you need, your rate typically matches anyone else’s. If they don’t, an alternative lender is an option, usually at a higher rate. I’ll show you both rates side by side before you choose.
Should I write off less income before I apply?
That’s a decision for you and your accountant, and changes take time to show up on your returns. Talk to me a year or two before you plan to buy, so you and your accountant can weigh the tax savings against the mortgage you want.
Does incorporating change my application?
Mostly, it changes the paperwork. Incorporated owners usually provide financial statements, T4 or dividend income and sometimes corporate bank statements. Sole proprietors provide T1s and business schedules. Both can qualify, and I’ll tell you which documents you need.
My bank said no. What now?
Other lenders are your next step. Each lender runs its own programs, so one bank’s no says little about the rest. Send me what the bank reviewed and I’ll check your application against the lenders I work with.
Let’s talk about your income and your plans
You don’t need all your paperwork ready to get in touch. Tell me what you’re planning, and we can start there.
A first conversation costs nothing and commits you to nothing.