Financing for Self Employed
Can I get a mortgage being self employed?
There are a number of factors that will determine your mortgage solution. Being self-employed does not typically put you at a favorable position when you are qualifying for a mortgage. I, Esi Ghassemi have established a network of lenders who understand self-employment and will not require you to prove your net income.
In fact, they accept reasonable estimates of your annual gross income, since they understand that self-employed individuals have tax write-offs that portray them as earning less than what they actually do.
How can you qualify for a mortgage in Ontario if you are Self Employed?
Being self-employed does not typically put you at a favorable position when you are qualifying for a mortgage. Esi Ghassemi has a network of lenders who understand self-employment and will not require you to prove your income. In fact, they accept reasonable estimates of your annual income since they understand that self-employed individuals have tax write-offs that portrays them as earning less than what they actually do.
What mortgage documentation is needed for a self-employed individual?
- The most recent bank statements for the last 6 months
- Proof of ownership of the business
- Personal T1 Generals
- Personal notice of assessment
- Business expense report
- In certain cases Financial statements of the last two years
Why choose me when applying for a mortgage as self-employed in Ontario? With access to a wide array of lenders, I specialize in creative mortgage solutions in order to make the process more favorable for each of my clients and their unique circumstances. Whether you own an all year-round business or a seasonal one, I will compare and recommend the best option tailored to guide your individual needs.
Frequently asked questions
Who in Canada is considered self-employed?
You are considered self-employed if you own a company, regardless of whether you are a sole proprietor or a partner. In other words, you earn money by obtaining contracts directly with customers and are not compensated by an outside business. This may include commission-based salespeople, freelancing creative professionals, farmers, etc.
Am I eligible for a mortgage if I am self-employed?
Yes, even if you're self-employed and wanting to acquire or refinance a home, you may qualify for a mortgage. However, due to the uncertainty of self-employment income, it might be more difficult for self-employed Canadians to get a mortgage.
How much mortgage can a self-employed person qualify for?
The amount for which you qualify for a self-employment loan depends on a variety of criteria, such as the lender you deal with, your income, your debt level, your credit score, and other financial considerations. In general, your chances of qualifying for a bigger mortgage increase in proportion to your financial situation and credit score.
How can I increase my chances of obtaining a mortgage if I am self-employed and have bad credit?
There are several techniques to improve your chances of obtaining a mortgage with bad credit if you are self-employed. Before applying, you may contact us to discuss the minimal criteria. You may also get a cosigner or provide additional collateral to secure the mortgage.
Are mortgage rates higher for self-employed borrowers?
Self-employed mortgage rates may be higher than standard mortgage rates, but there is no regulation stating that they must be. As is customary, the more favourable your financial status, the more likely you are to qualify for a reduced mortgage rate. If you have mortgage default insurance on your self-employed mortgage, your interest rate will be comparable to that of other insured mortgages.
