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Mortgage For Self-Employed. How Can We Help?

Updated: May 17, 2023

Getting a mortgage can be an uphill task for those who are self-employed. Self-employed people can seek either residential mortgages on a home or commercial mortgages which that can be taken on a commercial property owned by a self-employed individual or has his/her own business set-up.

Proof of income: A hurdle in obtaining mortgage for the self-employed

Self-employed individuals are often faced with a big challenge of showing proof of their income. This is because those Canadians who are self-employed declare their income in a manner which is non-conventional and a bit different from those who earn full-time or part-time salaries in order to save taxes. Besides, the usually low net incomes of self-employed people often disqualify them from availing traditional mortgages given by banks.

How Mortgage Brokers Can Help The Self-Employed in Getting Mortgages

Most self-employed people are not aware which lenders should they approach. Neither are they aware which lenders deal with self-employed mortgages in particular. They would also have to do a thorough survey to check which of the lenders are offering more favourable terms of payment.  This is where we step in and help such individuals. We do the research for them and we have an added advantage of being in contact with multiple lenders. We help you choose which lender suits your needs the best. Armed with our own expertise and our lender network we help self-employed individuals in getting the mortgages they need on the terms they like. Moreover, one can avoid heavy tax payments by using our help. Self-employed individuals also get the advantage of not having to travel to faraway places as we have our network of lenders a phone call away.

Different borrowing scenarios explained

Those borrowers who are able to provide their tax assessment of the previous two to three years get mortgages at the same rates as provided to traditional borrowers.  But those who cannot provide this have no reason to worry if they have a good credit history. If you have a good credit history and are able to provide a small down payment, you can avail the mortgage easily.

Bad credit history will not stop you from applying for a mortgage either, as we work with lenders who do not strictly operate with the same set of rules as a traditional lender such as bank. In our network of lenders are those who will accept various sources of your income. They will also accept your non-conventional proof of income which is other than the tax returns such as bank statements showing enough cash in your accounts, business contracts, financial statements, and other such proofs that the banks do not consider. 

Documents required for a self-employed mortgage application:

  • Financial business statements

  • Proof of full payment of HST and/or GST

  • Business contracts which indicate income expected in the next few years.

  • Personal and business credit scores.

  • Proof of ownership of business

  • Proof that down payment is not a gift

And lastly, the above list is not exhaustive as not all lenders require all of the above documentation.

LendX Financial can help you avail Mortgage for Self-Employed people easily and online. Contact us to get started.

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