Self-Employed Mortgages – Kelowna, BC

John Antle | Mortgages Beyond The Bank


Your Kelowna Mortgage Broker

For self-employed individuals in Kelowna, which includes business owners, entrepreneurs, and self-employed workers, you’ll need to provide additional documentation to verify your self-employment income and establish a strong credit history to secure a mortgage.

If you are self-employed and want to qualify for a mortgage, contact John Antle for expert advice and guidance.

What is the easiest way for me to confirm income for a Self-Employed Mortgage?

For self-employed Canadians, providing 2-3 years of documentation (tax returns / notice of assessment) from Revenue Canada to confirm business income is the best scenario for mortgage lenders to approve your mortgage financing.

As a self-employed individual, I write-off my expenses, making my income lower for income tax purposes. How can I be approved for a self-employed mortgage?

As a self-employed individual, if your notice of assessments doesn’t reflect the income needed to qualify for your desired mortgage, there’s an alternative route. You may still get approval by making a higher down payment of 10%, provided you have a strong credit score.

What will I be asked to provide to be approved for a self-employed mortgage?

To secure approval for a self-employed mortgage, you will need to provide the following documentation:

T1 General tax returns with attached statements of business activities, covering a minimum of two years. These must be prepared by an independent third party.

Audited financial statements for the two most recent years, which should be prepared and certified by a chartered accountant.

Notice of assessments from Revenue Canada for the past two to three years to confirm your income and ensure there are no outstanding tax liabilities.

What other information will be required if I am a Self-Employed borrower?

Anyone who applies for a mortgage when self-employed, whether to private mortgage lenders or other financial institutions, could be required to provide the following:

  1. Proof of full payment for HST and/or GST.
  2. Business license and articles of incorporation.
  3. Financial statements and bank statements prepared by an accountant.
  4. Confirmation of your status as a principal owner in the business.
  5. Contracts with clients indicating anticipated revenue for the upcoming years.
  6. Personal and business credit scores.
  7. The down payment in cash.

Are there any lenders that will consider gross income rather than net income to approve my self-employed mortgage?

Some lenders may allow you to add back some tax deductions to your income, such as car expenses, advertising, capital cost allowances and housing expenses. Other lenders will simply allow a 15% add-back to account for these expenses.

If I cannot show enough income to qualify for a Self-Employed mortgage what are my options?

Some lenders will offer insured “stated income” mortgage products, specifically designed for self-employed borrowers. In order to qualify for a stated income mortgage, you will need to take out your own mortgage loan insurance with a private mortgage default insurer, as the CMHC does not provide mortgage default insurance for these types of mortgages. Stated income applications also require:

  1. Minimum 10% down payment
  2. Minimum 2 years of self-employment
  3. The borrower is required to declare their annual income and annual business revenue, which should be reasonable based on the industry, length of operation, and type of business
  4. Business to be verified by an arm’s length third-party
  5. At least one borrower should have minimum credit bureau score of 680
  6. No previously bankruptcies
  7. Minimum 2 trades showing on credit bureau for minimum of 2 years
  8. No revolving, or installment delinquencies on credit bureau for 12 months
  9. Owner-occupied properties only

Are discounted rates available for a Self-Employed Mortgage application?

Interest rates offered for self-employed borrowers are the same as a regular borrower. To ensure you secure the most favorable rates, you will have to show a robust credit history and present thorough documentation of your self-employed income. 

Collaborating with a seasoned Kelowna mortgage broker who specializes in self-employed applications can be invaluable in finding lenders that offer competitive rates customized and mortgage solutions to fit your unique circumstances.

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    Our team is dedicated to assisting you in reaching your long-term goals. Explore opportunities and possibilities that you might not have considered by moving beyond conventional banking products, such as the traditional mortgage or stated income mortgage with a minimal down payment. Whether your objectives involve paying down your mortgage faster or generating rental income to expedite your amortization, we’re here to discuss all the available mortgage solutions.

    Whether you’re seeking self-employed mortgages in Kelowna or looking to renegotiate the terms for an existing property, your Kelowna Mortgage Broker is ready to assist you. Reach out to John Antle Mortgages in Kelowna today, and let’s begin the journey together!

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