Self-Employed and need a Mortgage?

If you work independently or own a business, then you know that it pays to keep your taxable income as low as possible. That makes you a smart business person. But the story can change when you try to get a mortgage. Your income – at least on paper – may not support the mortgage payments, and you could be penalized for smart income management. Innovative lenders had already begun to recognize that your T4 may not tell the whole story, as a myriad of stated-income mortgages have been launched over the last few years.

The newest mortgage does the unthinkable: it doesn’t require you to show your income records. In fact, there is no income declaration, no Notice of Assessment, and no confirmation of business ownership. It doesn’t even include your income as a factor in qualifying you for your mortgage.

So how does the lender assess whether you’re a good credit risk? They look at your credit history. If you have consistently paid your bills and your loans then you’ve demonstrated the kind of financial responsibility that suggests you can manage your mortgage. That’s the record your mortgage lender will rely on, although they will also verify your employment and assess the loan amount based on your field of work.

With this latest mortgage option, entrepreneurship and prudent income management are no longer a liability when it’s time to buy a home. It’s an exciting time to be buying a home – with more options than ever before.