Self-Employed Individuals, Contractors & Corporations
What is a self-employed mortgage?
A self-employed mortgage is a residential mortgage on a home owned by or being purchased by someone who is either self-employed or who owns their own business or corporation.
Self-Employed PROS
Being self-employed has many advantages such as flexible employment hours, endless growth opportunities, writing off business expenses, no corporate politics to navigate, and most importantly, tax benefits. With many types of acceptable legal tax write-offs for business related expenses such as corporate education, business lunches, transportation expenses, and more, people can save a lot by being in business for themselves. These savings are at the centre of why many people incorporate themselves as their own business and why more and more people are making the move to being self-employed or becoming incorporated.
If you are incorporated, in some cases you can even compound the savings at a much lower tax bracket than an individual taxpayer. If you haven’t already, we recommend that you speak with your accountant to learn more about the potential tax rewards of being self-employed.
Self-Employed CONS
However, because self-employed Canadians have a different type of way of declaring their earnings than salaried employees who are employed full-time or part-time, their declared net income is not always large enough to qualify for a traditional mortgage at the banks in Canada. Working for oneself can mean fluctuating monthly pay with no certainty one will earn the same as the month before. Traditional lenders know this and, in order to lend to self-employed individuals they want to see stability in income over a certain period of time.
Given the recent changes to mortgage rules and new mortgage stress tests, mortgage financing for a self-employed individuals through major Canadian banks can be a very stressful experience. It is not uncommon to see borrowers get rejected at traditional banks, even when all their business accounts may be held at the same bank. The major banks have very stringent lending criteria and will not lend to self-employed individuals if they do not meet these set rules.
What sets us apart
What sets us apart from the rest of our competitors is that we have over a decade of expertise in procuring these specialized mortgages whilst working with all kinds of self-employed individuals. Some of our past clients include self-employed I.T. professionals, hair salon owners, restaurant owners, landscapers, construction and renovation contractors, taxi/Uber drivers, web designers, and many other self-employed people.
We work for you, not for the bank
If you have been declined by the bank or an institutional lender, we’ll find a way to make it work regardless of the situation.
We work with lenders who are familiar with the reality of being self-employed, which is not cookie-cutter, as every business is unique. We take the time to understand your business so we can create a custom tailored-mortgage that works for you, while locking down lowest rates in the market.
How we can help
Here at 911 Mortgage Brokers – The Mortgage Centre, we take a different, more common sense approach. We specialize in helping self-employed individuals, whether individual business owners or incorporated companies, to obtain mortgages at the most competitive rates available in the market, even self-employed people who show little income, have seasonal income or have alternative income sources.
Our self-employed mortgage lenders will take into account other sources of income and will accept methods of proving income that may not have been properly declared on an applicant’s tax returns. If you can show business contracts with customers, banking statements that show additional cash going into your personal or business bank account, internal financial statements, financial plan, internal accounting records, and other forms of income verification that most banks will not consider, we can use these alternative forms of income verification to get you approved.
So, whether it is a mortgage for home purchase, a mortgage renewal, a refinance, a home equity loan, a home equity line of credit, a second mortgage or a private mortgage, we have the tools and knowledge to secure the right financing solution for you.
Because we work with a large pool of lenders nationwide including traditional Banks, Credit Unions, Alternative Mortgage Lenders, Mortgage Investment Corporations, and Private Lenders, we can explore a wide array of mortgage solutions for you.
Call Us Today at 289-318-0911 or Toll Free at 1-888-377-0911 for a free confidential consultation to discuss your options.
Our Service Areas
911 Mortgage Brokers – The Mortgage Centre offers services to clients across Toronto and the GTA, Vaughan, King, Aurora, Stouffville, Newmarket, Markham, Richmond Hill, Barrie, Innisfil, Orillia, Collingwood, Oshawa, Ajax, Whitby, Mississauga, Brampton, Caledon, Burlington, Oakville, Milton, Bolton, Hamilton, St. Catherines, Niagara Falls, Windsor, Kitchener, Waterloo, London, as well as far as Muskoka cottage country, Ottawa, Simcoe, and the rest of Ontario.
