Self-Employed Mortgage
Navigating the mortgage process as a self-employed individual can be challenging, but it doesn’t have to be. We understand the needs of self-employed borrowers and offer solutions to help you secure the best mortgage. You’ll get the financing you need without the hassle.
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What is a Self-Employed Mortgage?
What is a Self-Employed Mortgage?
Self-employed mortgages are designed for individuals who earn their income through self-employment or running a business, rather than receiving a steady paycheck from an employer. Unlike traditional borrowers with predictable income, self-employed individuals often face fluctuations, which can complicate qualifying for a conventional mortgage.
Traditional lenders usually assess net income based on tax returns. However, for self-employed people, this amount might appear lower due to tax deductions and business expenses. Self-employed mortgages account for these differences and offer more flexibility.
This type of mortgage is suitable for anyone who works independently, such as business owners, sole proprietors, or partners in a business. Incorporated individuals who own the corporation and draw a salary are also considered self-employed, but those receiving dividends only are not.
Overcoming Mortgage Challenges as a Self-Employed Homebuyer
Sarah, a successful graphic designer, struggled to secure a mortgage due to her fluctuating income as a self-employed individual. Despite a solid financial history, traditional banks were hesitant to approve her loan because of non-standard documentation.
MonsterMortgage.ca stepped in to help. We worked with lenders who specialize in offering flexible terms to self-employed borrowers. By assessing Sarah’s overall financial picture, including her business earnings and assets, we were able to secure a mortgage that suited her needs. This solution allowed her to continue growing her business while securing the property she had worked hard for.
Overcoming Mortgage Challenges as a Self-Employed Homebuyer
The MonsterMortgage.ca Difference
Our Customers Are Our Priority
With over 25 years of experience, we’ll work closely with you to assess your eligibility for different mortgage options, considering your financial situation and both short-term and long-term goals.
Get All The Facts
We’ll spend time understanding your needs and providing you with all the details and options to make an informed decision. Our independence allows us to focus on working for you. We partner with numerous lenders so we can find you the most advantageous deal.
Our Reputation
We are an award-winning Canadian mortgage brokerage firm with a weekly call-in show on CP24. We believe in giving back to our community. Over the years, we’ve proudly supported various community initiatives, including a 14-year partnership with the City of Toronto to raise millions of dollars for seniors.
Benefits
Flexible Income Verification
Self-employed lenders offer more flexible criteria for verifying income, considering the unique financial situations, including tax deductions and business expenses.
Gross income calculation
Self-employed lenders may use gross income instead of net income, increasing your borrowing power.
Competitive Rates and Terms
Self-employed lenders can offer competitive rates and terms close to those available to traditionally employed borrowers, ensuring fair access to home financing.
Easier Qualification Process
The application process is designed to accommodate the financial realities of self-employment, making it easier for individuals to qualify for a mortgage that fits their needs.
See Your Mortgage Affordability
Before making any decisions, take a moment to understand your budget with our Affordability Calculator. This will help you make informed decisions on your financial journey.
FAQs
To qualify for a self-employed mortgage, you typically need to provide business bank statements, personal tax returns, and sometimes financial statements. Lenders may also look at the stability of your income and your credit history to assess your eligibility.
Interest rates for self-employed clients are typically higher due to the perceived risk associated with fluctuating incomes. However, rates depend on various factors, including your credit score, the down payment, and the lender’s policies.
Yes, qualifying for a self-employed mortgage with a lower income is possible, especially if you have a good credit score and a larger down payment. Some lenders offer alternative methods to assess your financial stability, such as using business bank statements or projected future earnings.
Yes, you can use your business income to qualify for a self-employed mortgage. Traditional lenders will typically consider your net income after expenses as reported on your tax returns. Some non-regulated lenders may accept gross income or use bank statements to evaluate your financial stability. Comprehensive financial documentation can help demonstrate consistent and reliable income, increasing your chances of qualifying.
Let Us Help You Get the Best Mortgage
With experience assisting over 100,000 Canadians, we’re here to help you explore your options, compare rates, and find the mortgage that suits you best.
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