Self Employed Mortgages
Self-employed individuals often face challenges when applying for a mortgage due to the nature of their income and the documentation required to verify it. Here's an expanded explanation of self-employed mortgages, along with a list of typical documents needed:
Self-employed individuals can find it challenging to secure a mortgage due to the variable nature of their income. Lenders typically require additional documentation to verify income and assess the borrower's ability to repay the loan. Self-employed mortgages are designed to accommodate these challenges by offering flexible income verification options and tailored lending solutions.
Typical Documents Required:
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2 most recent years' Notice of Assessments and T1 General: These documents are used to verify your income reported to the Canada Revenue Agency (CRA). They provide a snapshot of your income and tax obligations for the past two years.
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2 years of business financials: This includes your company's financial statements, such as profit and loss statements and balance sheets, for the past two years. These documents help lenders assess the financial health of your business and your ability to generate income.
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Articles of Incorporation: If your business is incorporated, you will need to provide the articles of incorporation. This document verifies the legal existence of your company and provides details about its structure and ownership.
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Additional documents may be required depending on the nature of your business and your financial situation. These may include bank statements, business contracts, and proof of business registration.
As a mortgage broker experienced in working with self-employed individuals, I understand the unique challenges you face and can help you navigate the mortgage process to find a solution that meets your needs.