About twenty percent of all Canadians are self-employed, meaning they do not get an income if they call in sick, and have many other problems. Most often wonder whether they qualify for a mortgage without the advantage of getting sufficient information. The small business owner has the worst frustrations because they assume that their income is not enough for a mortgage.
The truth is that the best mortgage broker in Toronto has enough room for self-employed clients to earn a mortgage. It is, however, uncommon for them to get one if they follow the traditional mortgage process. We can help you understand different mortgage financing options to begin your journey towards homeownership quickly.
What you need to know about how to get a mortgage when you are self-employed
Is it difficult to get a mortgage with self-employment?
The only challenge facing self-employed clients is the hardship of finding a mortgage firm. There are plenty of other ways to prove you have a reliable income when you use the right mortgage lender. It is typically only a case of getting through a few blocks to get the right self-employed mortgage in Toronto.
Do self-certification mortgages exist?
These mortgages have a design that allows the client to certify how much they can earn in a year. However, the Canadian government banned these mortgages in 2014 because lenders could no longer filter out unqualified borrowers. It is now only possible for one to qualify for the self-employment mortgage only through the traditional route.
Who qualifies as a self-employed client?
Mortgage broker for self-employed borrowers will mark your case as self-employment when you only own 20 to 25% of the business. Therefore, the term is not restricted to the business’s title or nature and will suit the contractor, company director, or sole trader with equal measure.
Process of getting the self-employment mortgage
You have access to the same mortgage if you can prove your case to the lender. We have mortgage criteria with a flexible lending process for different mortgage packages. It is in your best interest to collect enough documents before contacting our experts. We will help you organize the process so you can understand the outcome of every approval stage.
Requirements of self-employed mortgages
The standard requirements for employment mortgages include the following:
- Two of more years of certified participation in the business
- A tax form for the past two or three years
- Evidence of an active business, such as contract documents
- Proof of paying dividends if you have a team of employees
- Utility bills
- Bank statements
- Identification such as a utility bill
Most lenders will give you an upper hand if you prove that the documents have a qualified accountant’s approval. They automatically believe that the numbers will favor paying the mortgage as per the stipulated rules. Remember that the options of a self-employed mortgage in Toronto will vary with your qualification for the numbers books.
We will qualify you for the same mortgage rate as all other types when you have a robust application. Do not lose hope if you do not get approval from a mainstream bank when you can access our award-winning packages. Contact our Toronto self-employed mortgage broker on 416-840-6368 or 416-850-5153 for a complete guide on our self employed mortgage in Toronto.