Self-employed borrowers are often told they will struggle to get approved. In reality, many lenders finance business owners every day. The difference is how income is proven.
How lenders view your income
Traditional lenders typically look at your personal income as shown on your tax returns and Notices of Assessment, often averaged over two years. If you claim many business expenses, your taxable income may look lower than your real cash flow.
Documents to have ready
- Personal tax returns and Notices of Assessment for the last two years
- Business registration or incorporation documents
- Financial statements, if your business is incorporated
- Recent bank statements
Alternative options
If your documented income does not match your true earnings, some lenders offer stated-income or alternative programs, which may come with a higher rate or larger down payment. Private lending can also be a short-term bridge while you build a stronger paper trail.
Plan ahead
The earlier you talk to a broker before you apply, the more time you have to organize your file and choose the right lender.
Talk to a Langley Mortgage Broker
Every file is different. If you would like to talk through your own situation, the team at M. Abdullah Mortgages is happy to help. Get in touch or start your application online.
This article is general information, not personal financial or legal advice. Rates, rules and lender policies change, so confirm the current details for your situation before making a decision.
