Self-employed individuals can take advantage of low mortgage rates and excellent mortgage options. These options are specifically designed for those who work for themselves and offer a fast approval process, even for individuals who have been previously declined for a mortgage.
One of the benefits of these self-employed mortgage options is that they consider the reduced taxable income that may result from claimed business expenses. This is particularly helpful for individuals who have significant expenses that impact their qualifying income. For those who have expenses that affect their income, a Stated Income mortgage may be particularly useful.
These mortgage options also recognize other sources of income, such as dividends and investments. However, there are stability and proof requirements to demonstrate the consistency of this income.
When applying for a self-employed mortgage, there are several documents that will typically be required. These include the Notice of Assessment, which shows the individual's tax obligations, the T1 Tax Statement, proof of principal ownership in the business, contracts or financial statements, and a copy of the Article of Incorporation or business license.
By working with a mortgage broker, self-employed individuals will have access to a wide range of lenders. This includes not only large banks, but also mortgage finance companies, credit unions, and alternative lenders who are willing to accept reasonable income estimates.
For individuals who are Business For Self (BFS) borrowers, there are options specifically tailored to their unique needs. These options can provide the flexibility and understanding that self-employed individuals require when it comes to obtaining a mortgage.
For more information on these self-employed mortgage options, individuals are encouraged to reach out and give a call.