Self Employed Mortgages

• Traditional Financing – Net income
• Stated Income – Business revenue
• Bank Statements – Usually backdated six months
• Net worth – Liquid assets
• Business Cash Flow – money left in the company

• You bet!
• With just six months of income statements over a twelve-month period, we can annualize your income deposits and qualify you.
• This tax advantage method is a popular option for many self-employed individuals.

• Traditional
  Traditional income is classified as verified income via your personal tax returns. This method of mortgage qualifying is the most challenging one of the three, supposing conventional “A” lenders will use your NET income after all expenses, write offs & other deductions.
• Non-Traditional Income
  With non-traditional income, your personal tax return is not a direct reflection of the income used like traditional income. Here, lenders will look at company bank statements and financial statements to verify your income via deposits. Because of the flexibility & tax advantage, this is the most popular category for many business owners.
• Stated Income
  This third option allows borrowers to piggyback off the traditional income verifications without fully verifying income. This is done by justifying the overall strength of the business, the industry of the business, past performance, years in business, and your application. While this option is quite strict, many call this option the “no income verification method”.

Lenders typically ask for:

With the above list of documents, there are many options available to you!

• T1 Generals for 2 years.
• NOA’s for 2 years.
• Business Financials (if incorporated).
• Articles of incorporation (if incorporated).
• Bank Statements for the last 6 months.

You sure can! This is called a Net Worth Mortgage Program.

If you have a minimum of $250,000 in “liquid” assets in an account for longer than 90 days, we can use those savings to help you qualify.

Let’s take a deeper dive at the specific guidelines below:

• For every $1 in liquid assets, you will qualify for $1 in additional mortgage financing.
• Must be earning a minimum income of $1,000 a month in addition to this program.
• These funds must be in addition to your down payment.
• You must be a Canadian resident paying taxes in Canada.

If this sounds like you, reach out to one of our trusted advisors to learn more.

• Yes, you can use seasonal income to qualify.
• The same requirements would apply for any income that is earned year-round.

A self-employed mortgage caters specifically to individuals who are business owners, freelancers, contractors, or otherwise earn income through self-employment. Unlike traditional mortgages that rely heavily on stable employment and regular pay stubs, self-employed mortgages consider alternative forms of income verification that reflect the unique financial circumstances of self-employed borrowers.

Qualifying for a self-employed mortgage typically involves providing comprehensive documentation to demonstrate your income stability and financial health. This includes personal and business tax returns, bank statements showing business income, profit and loss statements, and sometimes a business licence or articles of incorporation. Lenders also assess your credit score, business longevity, and overall financial standing to determine eligibility.

To apply for a self-employed mortgage, you'll typically need to submit several documents. These commonly include personal and business tax returns for the past two to three years, recent bank statements showing business income deposits, profit and loss statements (P&L), and evidence of business ownership such as a business licence or registration documents. Each lender may have specific requirements, so it's advisable to prepare these documents in advance.

Yes, self-employed individuals with fluctuating income can still qualify for a mortgage. Lenders often use averaged income over several years to assess your borrowing capacity and financial stability. This method provides a more accurate representation of your income potential, taking into account both peak and lower-earning years. It's essential to work with a mortgage advisor experienced in self-employed lending to navigate these income verification processes effectively.

Self-employed mortgages offer several benefits tailored to the needs of entrepreneurs and freelancers. These include flexible income verification methods that accommodate fluctuating income, personalised mortgage solutions that consider business expenses and tax deductions, competitive interest rates, and the ability to leverage home equity for business investments or personal financial goals.

Boychuk Mortgage Group specialises in assisting self-employed individuals to secure mortgages by offering personalised service and expert guidance throughout the mortgage process. We leverage our extensive network of lenders who understand the complexities of self-employment, ensuring you receive tailored mortgage solutions that align with your financial goals and circumstances.

If traditional banks have declined your mortgage application due to your self-employed status or other reasons, Boychuk Mortgage Group can help. We collaborate with lenders who are more flexible in their lending criteria and understand the unique financial situations of self-employed borrowers. Our team will work closely with you to explore alternative financing options and guide you towards securing a mortgage that meets your needs.