Are you running your own business and pondering a self employed mortgage application? Well, we’ve got some fantastic news for you – you’re in a position to have more options than the average salaried employee when it comes to securing a mortgage.  It’s about working with someone that understands your options, and can help explain them to you so you can work with your accountant to make sure you are in a position to make your dream of home ownership a reality!🕵️‍♂️

So, you’ve chosen the self-employed path, and it’s filled with its own set of challenges and rewards. Unlike traditional employees, your income streams may be diverse, and your financial journey might not fit neatly into the conventional mortgage mold. But fret not – what you may not know is that your unique financial situation opens doors to a wide array of mortgage solutions tailored to your entrepreneurial spirit.

Being self-employed is more than a job; it’s a lifestyle that comes with the flexibility to shape your income. While traditional employees have a fixed salary, you have the power to increase your earnings through your business ventures. This flexibility can work in your favour when it comes to securing a mortgage.

Traditional lenders often rely heavily on personal income tax returns to determine mortgage eligibility. This can be a hurdle for self-employed individuals, as their business income may not always align with their personal earnings. Many successful entrepreneurs reinvest in their businesses, reducing their taxable income, which may not accurately represent their financial health.

Here’s where the magic happens – self-employed mortgage programs. These specialized programs are designed with you in mind. Whether you run a one-person show, partner with others, or have a corporate setup, these programs recognize your unique financial journey.  There is some creativity here that we can use to try and bump up that income reported on your personal tax return by looking at adding back some of you expenses that a salaried employee wouldn’t be able to right off, or if you’re incorporated, we might be able to look at some of those earnings that stay within your company.

Self-employed mortgage programs understand that your business income is a significant part of your financial picture. They look beyond traditional income verification methods, giving you the opportunity to showcase your actual earnings and the strength of your business. This approach often results in a more accurate assessment of your ability to handle a mortgage.

When you explore self-employed mortgage programs, you’re not just getting a mortgage; you’re unlocking a world of possibilities. Your borrowing power can increase significantly, allowing you to consider more substantial mortgages and seize better real estate opportunities.

Another perk of self-employed mortgage programs is the personalized service they offer. These programs understand that your financial journey is unique, and they tailor mortgage solutions to align with your specific needs. It’s like having a mortgage that’s custom-fit to your entrepreneurial spirit.

Let’s be honest – paperwork isn’t the most glamorous part of the process, but fear not! We’ve got your back with a trusty checklist to keep things organized. For self-employed wonders like you, documentation isn’t just about proving your existence; it’s about showcasing your business journey and income adventure. You might need to gather:

1. Income Tax Returns
2. Credit Reports
3. GST Returns
4. Active Business Account Statements
5. Financing Statements
6. Business License
7. Audited Financial Statements
8. NOA & T1 Generals
9. Proof of Income (POI)
10. Statement of Business (T2125)

Now, let’s not forget about alternative lending. While self-employed mortgage programs are fantastic, they may not always be the perfect fit. In such cases, alternative lenders step in as a valuable option. They take a creative approach, focusing on your business’s actual earnings rather than your personal tax returns.  They will dig deeper into the business financial picture to get a better understanding of what you could really take home earning wise, and use that to determine your ability to qualify for a mortgage.

This approach can significantly boost your borrowing power, providing a lifeline for self-employed individuals who may not meet the standard criteria. Alternative lenders offer flexibility and a fresh perspective on your financial situation, making homeownership more attainable.

In conclusion, being self-employed in Canada doesn’t limit your homeownership dreams; it expands your opportunities. With self-employed mortgage programs and the potential of alternative lending, you have a wealth of options at your disposal.

Your self-employed journey is a testament to your entrepreneurial spirit, and it deserves mortgage solutions that recognize its unique nature. So, are you ready to embark on this exciting journey towards homeownership? Reach out to Marshall Tully today, and let’s take that crucial first step together. With your entrepreneurial drive and our expertise, success in homeownership is practically guaranteed. 🏠✨