Self-employed individuals often face challenges when it comes to obtaining mortgages. Many lenders are hesitant to grant loans to self-employed borrowers due to the perceived instability of their income. However, there are options available that offer low rates and excellent mortgage terms for self-employed individuals.

One of the benefits of these mortgage options is fast approval, even for individuals who have been previously declined by other lenders. These lenders understand the unique circumstances of self-employment and are willing to consider factors beyond just the applicant's taxable income. They take into account reduced taxable income resulting from claimed expenses, allowing self-employed individuals to qualify for larger loan amounts.

Stated Income mortgages are particularly useful for those with expenses that impact their qualifying income. These mortgages allow borrowers to state their income without the need for extensive documentation, making it easier and more efficient for self-employed individuals to secure a loan.

In addition, lenders who offer mortgages to self-employed individuals are often willing to accept dividend and investment income as part of the borrower's overall financial stability. However, they do require proof of this income, such as financial statements or contracts, to ensure the borrower's ability to repay the loan.

When applying for a mortgage as a self-employed individual, there are certain documents that will be required. 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. Providing these documents helps lenders assess the borrower's financial situation and make an informed decision.

Self-employed individuals have access to a wide range of lenders, including large banks, mortgage finance companies, credit unions, and alternative financers. These lenders are willing to work with self-employed individuals and accept reasonable income estimates, tailoring mortgage options specifically for their unique circumstances.

If you are a self-employed individual in need of a mortgage, it is important to explore these options and find a lender who understands and caters to your specific situation. Give us a call today to discuss your needs and find the best mortgage solution for you.