Self-employed individuals can enjoy low rates and excellent mortgage options that cater to their unique financial situation. These options are designed to provide fast approval, even for those who may have been declined for a mortgage in the past. One key feature of these mortgages is that they take into consideration the reduced taxable income that can result from claimed business expenses, making it easier for self-employed individuals to qualify.

For those who have expenses that impact their qualifying income, a Stated Income mortgage may be a useful option. This type of mortgage allows borrowers to state their income without providing traditional proof of income documents, making it a more flexible choice for self-employed individuals. In addition to income from their business, self-employed individuals may also be able to use dividend and investment income to help qualify for a mortgage, as long as they can provide stability and adequate proof of this income.

When applying for a self-employed mortgage, there are several documents that will be required to support the application. These documents include the Notice of Assessment, T1 Tax Statement, proof of principal ownership in the business, contracts or financial statements, and a copy of the Article of Incorporation or business license. By providing these documents, self-employed individuals can help lenders understand their financial situation and make a more informed decision about their mortgage application.

Self-employed individuals seeking a mortgage have access to a variety of lenders in Canada, including large banks, mortgage finance companies, credit unions, and alternative financers. These lenders are open to accepting reasonable income estimates from self-employed borrowers and offer options tailored specifically for Business For Self (BFS) borrowers. If you are self-employed and looking for a mortgage, it may be beneficial to explore these options and see how they can help you achieve your home ownership goals. Feel free to reach out to discuss your options and find the best mortgage solution for you.