Harpreet’s perspective
Real questions. Real properties. Real numbers.
Being self-employed has advantages: you build your own business, control your schedule, and create something of your own. Then you apply for a mortgage and somebody asks for T1 Generals, Notices of Assessment, corporate financial statements, bank statements, and twelve other documents.
Welcome to self-employed mortgage qualification.
Business Income and Mortgage Income May Look Different
A business owner naturally wants to run a tax-efficient business. A lender needs to determine how much sustainable income is available to support the mortgage. Those two goals do not always produce the same number.
Maybe revenue is strong but personal taxable income looks lower. Maybe money remains inside the corporation, there are legitimate expenses, or income changes from year to year. That does not automatically mean you cannot get a mortgage; it means we need to understand the whole picture.
Bring the Whole Story
What do you do, how long have you done it, how are you paid, is the business incorporated, what do the last couple of years look like, and are revenues growing? Depending on the lender and program, different methods and documentation may be used to assess self-employed income.
Do not decide that one number is all you qualify for. Bring me the financials, tax returns, and business story. I will translate the mortgage part.
Plan Before You Buy
If you are self-employed and thinking about buying next year, talk to me before you find the house. That gives us time to understand reported income, documentation that may be needed, and questions you may wish to discuss with your accountant.
Your accountant’s job is not to qualify you for a mortgage, and my job is not to prepare taxes. But when the two worlds understand each other, life gets much easier.