Self-Employed Individuals

Securing a mortgage if you are self-employed is not as difficult as you might think, but every lending institution has different requirements and lending guidelines when it comes to self-employed individuals. We can help you decipher all the “business-for-self” programs offered, and guide you the best choice for your unique situation.

Business-for-self programs apply to business owners, self employed individuals, and contracted or commissioned workers. The purpose of these programs is to serve individuals who cannot provide proof of income in traditional ways. There are three types of self-employed programs: the income qualifying self-employed programs, the stated self-employed program, and the alternative income qualifying program.

Income qualifying self-employed program
In this program, the lender will ask for Notices of Assessment (NOA) and they will gross-up the net income from the NOAs.

Stated self-employed program
In this program, the lender asks for a clean credit history, proof that the client is in business for himself including business license, HST registration, or incorporation documents, as well as self-declared income that should be in line with the occupation and geographic location of the business.

Alternative income qualifying program
In this program, the lender would seek alternative ways of confirming the client’s income. For example, the lender might ask to see financial statements, bank statements, contracts, or invoices.

In all cases, lenders may also ask for proof that the client does not owe any back taxes to Revenue Canada.

It is a common misconception that self-employed programs impose high interest rates on the borrower, but this is not usually the case-the best discounted rate is often available for these individuals. Contact us to find out the options available to you.