Ottawa emlakci

Self Employed Home Buyers Mortgage

Getting financing approved for home buyers has become more and more challenging under all the new government imposed rules. For self employed home buyers, it becomes even more interesting.

That said, there are ways to get mortgage approved for these hard working individuals. The key to approvals for self employed buyer lies in asking the right questions and getting the proper documentation to support the claims regarding their type of work and the income being generated by the business.

Most self employed businesses have different ways of reporting their income, reducing all their taxes as much as possible. For these individuals their notice of assessment income is low due to write offs against their income. In order to qualify for mortgages, they need to demonstrate that their gross business income is reasonable enough to support the income level stated for them in order to have the deal approved.

One way for self employed individuals who are in sole proprietors and unincorporated business is by incorporating their business, since most banks do prefer salary. Once incorporated, the self employed individuals can pay themselves a salary, the other advantage of incorporating is it could also reduce tax rates and allow the business owner to collect a higher salary or dividend payout.

Most mortgage brokers have more ways to secure a loan for self employed individuals, they use alternate lenders that allow for more flexibility in getting the approvals in place without charging too high of a rate.

I certainly know couple of great mortgage brokers who can assist in helping self employed individuals obtain a mortgage here in Ottawa, please feel free to contact me for a referral and for your further investment or living arrangements.



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