Navigating the Mortgage Maze as a Self-Employed Business Owner. We can help.
If you're one of the many self-employed individuals out there, you know that your financial picture might look a bit different from someone with a traditional 9-to-5 gig. And when it comes to mortgages, you might find yourself scratching your head wondering if there's a secret map to navigate through the maze of applying for one. Worry not! We are here to be your mortgage compass.
1. Income Proof is Your Best Friend
For those with T4 slips, proving income is an easy task. But for you, the self-employed individual, you'll need to get a bit more creative. Lenders will typically want to see two years' worth of tax assessments – that's your Notice of Assessment from the CRA – to make sure your income is consistent. And remember, they're not just looking at what you earn, they're looking at what you declare. So those business expenses you write off? They might help with your tax bill but could lower your income in the eyes of the lender.
2. A Good Credit Score is Like Having a Superpower
In the mortgage world, your credit score can be your cape. Lenders love a good credit history because it shows you're as reliable as a Mountie's horse. Make sure your credit score is strong and healthy, like you've been feeding it nothing but the best financial veggies. Pay your bills on time, don't max out your credit, and keep your credit inquiries infrequent.
3. A Bigger Down Payment Can Unlock Doors
Here's a secret: the more you put down, the less risky you look. Think of it like putting extra toppings on your pizza – it just makes everything better. A sizeable down payment can be a game-changer for getting approval and might even snag you a better rate.
4. Debt Ratios: The Balancing Act
Lenders will look at your debt-to-income ratio. This is all about balance. Too much debt can make lenders nervous, like watching a novice tightrope walker. Keep your debts low and your chances high.
5. Professional Help: Your Guiding Star
Lastly, don't go at it alone. As a self-employed individual or business owner in Ontario, you have enough on your plate. A professional mortgage broker (like the team at OwlMortgage.ca) can help you present your financial story in the best light and find lenders who get the self-employed hustle.
In Ontario, we're lucky to have a diverse lending environment. There are many options out there, from big banks to alternative lenders, all with different appetites for the entrepreneurial spirit. It might take a little extra work to get that mortgage, but remember: your business was built from the ground up. You've already done the hard part.
So, fellow self-employed Ontarians, don't let the mortgage maze intimidate you. With the right preparation and a bit of guidance, you'll find your way to a mortgage that fits just right – like the perfect winter jacket on a brisk winter morning. Our team can help you find the best mortgage and financing that suits your exact needs.Start Your Journey