Blog > Self Employed

So you have decided to be self employed. The world of long hours and no thanks. Where banks like to treat you like you make less than a paperboy in the 90s. You are told that you don’t claim enough income or your business is too risky, what is you don’t make any money, what if a meteor falls from the sky and hits only the people that would pay for your services. Lets help shed some light on how we get you a mortgage and what items we will look at to help position you for approval from the bank.

One major factor is you have to have been in the industry for at least 2 full tax years or if you a less then that you must have been in the industry for at least 5yrs. If you have 2 full years and you claim enough income for use to qualify your file is treated normal and we use a 2yr average. After this it gets tricky. I am not going into extreme detail but just the top layer so if you hear what sounds to be your situation best to fill out an application and get us piecing everything together based on your specific business so you can get actual answers based on your own situation.

Okay here we go.

If you are a sole proprietor then there are items from everything that you write off that we can throw back into your income which in many cases helps you qualify for substantially more. We also have another option of increase the amount you claim by a certain percentage to make up for your written off income.

If you are a sole proprietor with 10% down with quite a bit more revenue than what you actually pay tax on we have options for you in which we can also increase the amount you can be approved for.

If you are incorporated we can look at your revenues along with your retained earnings and in some cases increase the amount of acceptable income that way.

If you are incorporated with 10% down we also look at your revenue and retained earnings to increase the amount of income that is acceptable to increase the amount you can be approved for.

If you are incorporated and have a vehicle negatively effecting how much house you can buy and you have your payments coming out of you business account for over a year we can look at making that debt stop working against you.

If you are a commissioned salesman for over a year and you can be guaranteed an minimum income amount we can help.

As you can see there a many scenarios in which we can look at your business financials and find a lender willing to work with you.

The only scenario we have a hard time with is if you are self employed and you claim 0 income and/or claim a loss in your business year after year. This is hard for us to get the banks to help in those scenarios.

If you are self employed and wanting to see what we can do best to fill out our online application and get the ball rolling so we can tell you what your personal options are based on your own business scenario. We look forward to helping you and helping with the frustrating experience of trying to buy a house when you are a business owner.