Google Images

With nearly 20% of all income earners in Canada being self-employed (at least part-time), we often wonder why it’s so difficult for this growing demographic to obtain a mortgage.

The first issue is the fact that income is not always easy to prove. Also, many business owners are motivated to expense as much as possible in order to minimize their taxes payable, which is something many lenders do not recognize.

In order to obtain a self-employed mortgage, most lenders require that personal tax returns and Notices of Assessment from the past 2 years be included with the mortgage application.

Some of the other supporting documentation a lender may require for a self-employed mortgage application include:

  •                     Last 2 years financial statements for your business
  •                     Your credit scores and history
  •                     Proof that you are a principal owner in the business
  •                     Proof of down payment

Using a mortgage broker

Because it’s difficult to navigate which lenders specialize in self-employed mortgages, or have more favorable terms for the self-employed, using a mortgage broker has obvious advantages. Mortgage brokers have access to multiple lenders and have a broad knowledge of the mortgage market. Therefore, a broker can connect you to the lender most suited to your situation.

For a free, no obligation consultation to discuss your mortgage options, please contact me by phone @ 204-371-9284 or email at