How To Get A Mortgage When You Are Self Employed

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How To Get A Mortgage When You Are Self Employed
Obtaining a mortgage when self employed can seem complicated, especially in a market with limited inventory and multiple offers. This often doesn't allow for offers with conditions and clients with complicated income may require that condition period to help ensure they qualify for a mortgage.
What makes applying for a mortgage when considered, "business for self" or "self employed" so complicated all depends on how one files their income. If you file enough income on your personal tax return to debt service a mortgage, then the approval process is not more complicated than anyone else applying for a mortgage - like someone who is salaried.  If the income debt services, credit is strong enough and you and the property fit all the requirements, you qualify.
When being business for self is complicated is when you have significant deductions, perhaps strong top line revenue but limited personal income claimed on your personal income tax return.  In these scenarios we need to show the lender how you can debt service the mortgage and some lenders are better at accepting these different forms or debt servicing then others. 
One of the advantages of using a mortgage broker is access to multiple lenders. Some lenders allow you to gross up your income to consider some of the deductions your making at source, others will consider your business financials or personal bank deposits and some will consider a net worth component if the income still isn't there from a traditional sense but the mortgage can be serviced by a combination of the business and liquid assets.
Some tips to help get organized when applying for a mortgage and are business for self:
1. Have your two year personal tax returns available, both T1 General & Notice of Assessment
2. Have 3-6 month bank stamens available, highlighting your deposits that can be considered revenue and track your recurring monthly expences
3. If you have business financials, he your most recent financials on hand
4. If incorporated, ensure you have have your articles of incorporation and organization chart available 
5. Update your net worth statement highlighting and separating your liquid assets like marketable seructiies from real estate holdings and if possible trace back 1 year from the date of application. 
6. Provide the source and evidence of down payment available for closing
If you are able to easily provide the above documentation there are many lenders that an experienced mortgage broker can help you arrange a mortgage with.  Just ask your mortgage broker or banker if they have experience with working with and doing mortgage for clients that are self employed. Its more niche than a regular mortgage and experience is everything!
For help arranging a mortgage if your business for self, email
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