Self-Employed individuals include realtors, contractors, business owners, financial planners, network marketers, stock brokers, and 100% commissioned jobs...etc. These individuals do not have T4 on Notice of Assessment (NOA). Instead, they have T1 General (with statement of business activities) on the tax return.
There are different qualifying scenarios when Business For Self (BFS) apply for a mortgage: You do, or you do not, have sufficient income reported to CRA shown on Notice of Assessment (NOA) on line 150 to service the mortgage. Generally, they fall on the second scenario, and even occasionally, they report business loss to CRA.
The general guidelines for self-employed (BFS) to qualify for mortgage:
1. You reported business income minimum 2 years (same industry)
2. You can provide 1 of the following items: business license, GST/HST return summary, incorporation certificate, audited financial statements prepared and signed by CA
3. Your down payment must be from your own resources, shown on 3 months record of bank statements, investment portfolio, RRSP, and other liquid assets.
4. Your credit score is vital for qualification, the higher your score, the more you can borrow
Good new is, if you meet all above, your reported income is not a factor anymore.
Read "Qualifying 3. Source(s) of Income"
Contact us if you do not meet all of above criteria. You will be able to qualify under other mortgage programs only available through broker channel with us.
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