Self-employed individuals often face challenges when it comes to obtaining mortgages due to their fluctuating income and unique financial situations. However, there are several options available for those who are self-employed and looking for a mortgage.

One of the advantages of these options is the low rates and excellent mortgage options that are offered. Lenders understand that self-employed individuals may not have a consistent income stream, so they offer competitive interest rates and flexible terms to accommodate their needs.

Another benefit is the fast mortgage approval process for self-employed individuals, even if they have been previously declined. Lenders understand that being self-employed does not make someone less creditworthy, so they are willing to overlook previous declines and offer a mortgage solution that suits the individual's financial situation.

Self-employed mortgage options also take into consideration the reduced taxable income that comes from claimed expenses. This is particularly useful for individuals who have a significant amount of expenses that impact their qualifying income. Lenders understand that these expenses are necessary for the operation of the business and are willing to work with the self-employed individual to find a suitable mortgage solution.

One such solution is the Stated Income mortgage, which allows individuals to state their income without having to provide extensive documentation. This is particularly useful for self-employed individuals who may not have traditional pay stubs or tax forms to provide as proof of income. However, it should be noted that proof of stability and income is still required for this type of mortgage.

When applying for a self-employed mortgage, there are several documents that lenders typically require. These 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.

Finally, self-employed individuals have access to a wide range of lenders, including large banks, mortgage finance companies, credit unions, and alternative financiers. These lenders are willing to accept reasonable income estimates and work with self-employed individuals to find a mortgage solution that suits their needs.

If you are self-employed and looking for a mortgage, there are options tailored specifically for Business For Self (BFS) borrowers. To learn more about these options and to start the application process, give us a call. We will be happy to assist you in finding the right mortgage for your unique financial situation.