If you are self-employed and looking for mortgage options, there are excellent opportunities available with low rates designed specifically for your unique financial situation. Self-employed individuals often face challenges in securing mortgage approval, especially if they have been previously declined. However, fast mortgage approvals are possible even after past refusals, thanks to lenders who understand the complexities of self-employment income.
One key benefit for self-employed borrowers is the availability of mortgage options that take into account reduced taxable income resulting from claimed business expenses. Many standard lenders rely heavily on declared income, which can be lower for those who deduct significant expenses. In such cases, a Stated Income mortgage can be particularly useful, as it focuses on income documentation that reflects the actual cash flow rather than just taxable income figures.
Additionally, dividend and investment income are often accepted by lenders as part of income verification for self-employed applicants. Of course, these income sources must demonstrate stability and be supported by appropriate documentation to satisfy lender requirements. To apply for these specialized mortgage products, several documents are typically necessary. 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.
Access to a wide range of top Canadian lenders is another advantage. These include major banks, mortgage finance companies, credit unions, and alternative financiers who are comfortable accepting reasonable estimates of income for self-employed applicants. Additionally, there are specific options tailored for Business For Self (BFS) borrowers that can provide even greater flexibility.
If you’re self-employed and interested in exploring these tailored mortgage solutions, feel free to give me a call for personalized assistance and guidance through the process.
