Over 60% of Canadians are now self-employed in one way or another. Most self-employed individuals have difficulty qualifying for mortgage financing due to the lack of income verification or inconsistency of income. As your Mortgage Professionals, our goal is to help you by providing you with mortgage options to either refinance or purchase their dream home.

There are three different types of self-employment in Canada:

Sole proprietorship – A sole proprietorship is a one-owner operator where the owner assumes all responsibilities and obligations by themselves.

Any one of the following documents must confirm at least two (2) years of self-employment history:

• Business License
• GST/HST Return Summary
• T1 Generals with statement of business activities attached for a minimum of the last years
• Audited Financial Statements for the last 2 years, prepared and signed by a CA
• Plus the last two years of Notice of Assessments from the borrower(s)

Partnerships – Businesses owned by two or more individuals who share the profits and losses of the business.

Documentation requirements – Any one of the following must confirm at least two years of self-employment history:

• Business License
• GST/HST Return Summary
• T1 Generals with statement of business activities attached for a minimum of last two years
• Audited Financial Statements for the last 2 years, prepared and signed by a CA
• Plus the last two years of Notice of Assessments from Revenue Canada for the borrower(s)

Corporations – A corporation is a separate legal entity in itself from the persons/shareholders who own it. The corporation can own assets, enter into contracts and conduct business transactions on its own. The liability of the shareholders is limited to their investment in the corporation as long as there are no personal guarantees made. An article of Incorporation is a document that is a certificate showing all partners and shareholders in the business and will be required when a borrower who is part of a corporation is seeking mortgage financing.

Documentation requirements – Any one of the following must confirm at least two years of self-employment history:

• Documentation requirements – Any one of the following must confirm at least two years of self-employment history:
• Audited Financial Statements for the last 2 years
• Last two years of Notice of Assessments from Revenue Canada for the Borrower(s)
• Last two years of T1 Generals with statement of business activities attached for a minimum of last two years

Mortgages for the self-employed are our specialty. Banks typically find them too difficult or too complicated to understand due to the borrowers having a lack of income or documentation. Our Mortgage Professionals will help package your mortgage application so that the lenders approve your mortgage financing at excellent rates and terms. Feel free to apply now or contact us for more information.