Self-employed business owners have a more difficult time qualifying for residential mortgages than traditionally employed individuals because of fluctuating monthly income streams and business expenses.
However, since the pandemic, self-employment has been on the rise for Canadians. Since self-employed individuals are considered “high risk” by mortgage brokers and lenders, self-employed individuals must provide paperwork to prove that their income stream and credit history are credible, when it comes to buying a home.
⦿ Evidence that you have paid your HST or GST in full.
⦿ Notice of Assessment from the Canadian Revenue Agency (2 years)
⦿ Personal and Business Credit Score
⦿ Proof of principal ownership or sole proprietorship
⦿ Business license in the province you operate.
⦿ Contracts showing expected revenue for the next year and past revenue over the past two years.
⦿ Proof that the down payment that you intend to act as your lump sum has not been gifted from a friend, family member or business partner.
Oftentimes business owners do their best to report less income to avoid a higher tax bill at the end of the fiscal year.
Juno Mortgages partners with banks and lenders that can use alternative documents to help qualify for larger amounts and relieve the stress of being a business owner and qualifying for a residential mortgage.
