Being Self Employed
In order to obtain a self-employ mortgage, more lenders requires that personal tax Notices of Assessment from the past 2 to 3 years be included with the mortgage application. Those who are able to provide these proof are generally able to access the same mortgage as other borrowers.
In addition to the Notices of Assessment, these are the other supporting documentations that may also be required.
- Financial statements of your business
- Proof that your HST/GST is paid in full
- Contracts showing expected revenue for the coming years.
- Personal and Business credit scores
- Proof that your a the principal owner in the business
- Copy of your borrower’s business or GST license or Article of Incorporation showing your are licensed
- Proof that your down payment was not gifted
Mortgage Default Insurance
Canadian who are their own boss must purchase mortgage default insurance if they can not make a minimum down payment of 20%, similar t o those who are not self-employed. This is to protect the lender in case you are not able to make your mortgage payments. Mortgage default insurance premiums are lower for who can show proof of income.