Self Employed Mortgages and Income
Are you self-employed and currently looking for a mortgage? Sometimes it’s hard to know what a lender will want when it comes to being self-employed. It’s a little different from a regular employee’s income.
Identifying Unique Mortgage Challenges for Self-Employed Individuals
Navigating the mortgage process as a self-employed individual comes with its set of unique challenges. Unlike salaried employees who easily prove their income through T4 slips, self-employed folks like us need to work a bit harder to show our financial stability and earning consistency to lenders. The fluctuating nature of self-employment income can sometimes make lenders hesitant, as it potentially poses a higher risk compared to regular, predictable employment income.
We understand that our income may not always be consistent month-to-month or year-to-year, which is why we’re here to help you prepare as effectively as possible. Many lenders require a detailed track record of income, often looking at the last two to three years of filed tax returns. Additionally, proving the sustainability and growth potential of your business is crucial. Lenders might also want to see business incorporation documents, GST/HST returns, and other paperwork specific to your industry. This understanding positions us to select the right lender and mortgage products that align with your circumstances. Thankfully, when you work with Max Lend and a mortgage advisor, like me, I’ll be able to guide you through the whole process.