Self-Employed Mortgages

How to finance your home while being self-employed.



You CAN have the best of both worlds.

Being self-employed shouldn’t result in you being unable to take advantage of a tax-efficient and lucrative real estate market.

 

Some banks can be quite narrow-minded and have lending criteria that aren’t necessarily relevant to everyone, such as asking for years of stable income statements. How can you avoid this prejudicial behaviour if you are recently self-employed? You just need to speak to us!.

 

With just six months of income statements for a 12 month period, we can annualize the income by doubling your gross deposits. 

 

Additionally, banks will look at your net income. If your account has been creative and lowered your income for tax efficiency, you may not qualify for a mortgage directly. 

 

Please take a look at our guide below to find out everything you need to know about financing your home while self-employed.


Self Employed Mortgages Guide / FAQ:

  • Can I get a larger mortgage without needing to increase my net income?

    If you choose to keep much of your income within the business, you can still qualify for a mortgage by using your gross business income over 12 months, meaning that any earnings retained in the company can also be included.


  • What can be considered as qualifying income?

    Most banks would only consider any line 150 net income (with an average taken over two years) as qualifying income. We can “gross-up” this net figure by 15% or event make use of add-backs from T1 General. 

     

    If your income is still too low, or if you’ve been in business for less than two years, you can qualify with lenders with just six months of revenue, even if you are self-employed.

     

    You can also include dividends, commission earnings and T$ salary income a qualifying income.

  • What documentation will I need to show my income?

     Lenders will ask for: 

     

    - T1 General’s for the last two years and any notices of assessment

    - Your articles of incorporation (if incorporated)

    - our HST or business registration (if applicable)

    - Bank statements for the last six months

  • What if my income is seasonal?

    The same averages and requirements for income will apply as if your income is earned year-round. 


  • Why does so much documentation need to be provided?

    To make things easier, we recommend putting us in touch with your accountant so that we can work together to gather the required documentation for you.

     

    Our online document storage makes uploading and sharing these documents a simple as it can be for you.


Share by: