Being self employed is harder when it comes to mortgages
Therefore as self employed you may find yourself as approved for less of needing to go for an insured mortgage which is more costly. For instance self employed can get up to 90% financing while salaried clients will get 95% loan. Some banks and lenders will offer a slightly higher rate to self employed vs employees. On top of it the way your income is viewed would be much stricter. Fortunately, we have a fantastic rate of approving self employed clients to best terms mortgages.
Extensive mortgage planning as well as tax consideration
When we analyse your income structure as well as your companies’ records, we can come up with a series of recommendations to modify your income or tax structure to allow a better mortgage and further savings. Especially when you buy more rental properties and some on your company’s name. We will work hand in hand with your accountant to achieve your goals. This is why it’s so important to start the process even before you have a property lined up for you.
Questions about self-employed mortgage? We can help!
Does my mortgage have a higher rate?smt-0079adminNot with all lenders. Some will consider self-employed as eligible to the same rates that employees get and some will see this income as presenting a higher risk, therefore will be priced higher. With access to so many lenders and 600+ landing programs, you’ll get the best offer to accommodate your needs.
Do banks look at my net income or my gross income?smt-0079adminThe most common approach is to average the last 2 years of your T4 income, the one shows on line 150 in your tax return documents. We do have lenders that will look at your gross income to support the higher number and take your net income up by 15-20%. On top of it we have lenders that will look at recent invoices to support more income for your mortgage.
I get a salary and T4’s as a salaried employee of my company. Can I be considered an employee and not self employed?smt-0079adminActually no. You are considered self-employed even if you are a salaried employee of your own company. It means that contrary to an employee that needs to show only a job letter at full-time permanent positions and 2 recent pay stubs, you’ll need to show 2 full taxable years in the same line of business. Let’s face it, there is no one who can write you a job letter but yourself:)
How do banks calculate my income if my last 2 years are very different?smt-0079adminBanks and lenders will look at the last 2 years of your tax documents, like T1 general, NOA’s, T2’s and financial statements. If the most recent year shows higher figures they will use the average of the two years. If the most recent year is lower, they use the lowest most recent year. When the difference between the year is bigger than 20% they will do a special consideration. Unique global event call for special consideration as well.
Will I have the same rate and process if I purchase in the name of my company?smt-0079adminNo, It’s a different process and terms. Because when you buy in the name of a company, you, the individual, become a guarantor to your company’s loan, most of our clients prefer to keep purchasing in their personal name. We always compare the scenarios, so if in your specific circumstances there is a value in purchasing in the company's name, we’ll present it to you and will make sure to get you the best deal.
Focused mortgage approval process
COMPLETE OUR FORM
All it takes 1-2 minutes to send us your form. You can expect a response from us within 24 business hours. We’ll set up time for a quick phone conversation to determine how we can help you. Once we see we can get you the value you need, we will collect all information needed to immediately submit your file to specific lenders.
Our process begins with us collecting your supporting documents, things like ID’s, tax documents etc. We need these so that when we contact a lender on your behalf, they will not only approve you, but will also take the next step and confirm your income in order to offer you a fully guaranteed mortgage commitment. Giving us your documents upfront serves you in that we are able to perform a focused search among 40+ lenders and find you a tailored mortgage solution, the best mortgage rate and best mortgage terms.
A mortgage can be arranged within very short notice. Our record is set today at 11 hours from initial call to funding for a private mortgage, and 5 business days from the first call until the keys were in our client’s hands, for a conventional mortgage(!). Having said that, it is always better to take the needed time to properly lead a controlled and focused process. We are here with you along the way and long after you conclude it, as we constantly oversee the market to discover opportunities for our clients to cut costs.
Your total monthly payment
NOTE: ALL MORTGAGE CALCULATOR RESULTS ARE APPROXIMATE VALUES. Please call us for your exact mortgage calculation.
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