Self Employed

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Self employment shouldn’t be a barrier to obtaining a mortgage.  We are aware that your business is generating income and may have a positive cash flow which the business does not declare. Finding a lender that can provide a suitable product can be difficult for self employed clients when it comes to income confirmation.

Stability of a regular income source is necessary. The minimum down payment of 10% is required when you are self employed. Lenders rely on financials and bank deposits in most cases for income confirmation.

Under the stated income program, clients have the flexibility of borrowing and qualifying for a mortgage.  Stated income is the amount of income the borrower attests to having, and which can be supported with financials or an accountants letter or bank statements.

Deductions can hinder the income amount on your tax statements which is very common.  By lowering your deductions on your tax return, your income will be larger when trying to obtain a mortgage.

Business owners tend to take a beating in the first couple of years of starting a business. All trade-lines and repayment history are taken in to consideration when obtaining finance.

Traditional lenders may request the following documents:

• Most recent 2 years notices of assessment
• Financial statements  ( T1 General)
• Confirmation that HST/GST payments are up to date
• Contracts showing ongoing expected revenue
• Personal net worth and bank statements

If a lender is reluctant, we can bolster your case with the following:

•Co-signer
•Larger down payment
•Collateral
•Proof of skills, in case you were required to find a salaried position

NOTE: For every borrower, there is a lender. CMFG also provides alternative solutions to clients who did not file their income tax.   Contact ameera@cmfg.ca to discuss your borrowing options.