Self-Employed and Seeking a Mortgage

Self-Employed and Seeking a Mortgage

If you’re self-employed and looking to secure a mortgage, Simon Look, Sunlite Mortgage Brampton Mortgage Agent, is here to help. Simon Look and his team have been helping self-employed borrowers with tailored mortgage solutions for over 25 years. We understand the unique challenges self-employed individuals face and work to make the process seamless. The Sunlite Mortgage team offers competitive rates and personalized guidance, ensuring you find the right mortgage for your unique financial situation.

Qualifying for a Self-Employed Mortgage

At Sunlite Mortgage, we simplify the mortgage process for self-employed borrowers. If you can provide Notices of Assessment (NOAs) and T1 Generals for the past two years, along with acceptable income levels, you can access competitive rates and terms similar to traditional borrowers. If traditional documentation is unavailable or your income appears lower due to write-offs, we offer flexible options, including stated income solutions or alternative verification methods.

How We Categorize Self-Employed Borrowers

Every self-employed borrower is unique, which is why the Sunlite Mortgage team provides tailored solutions based on your financial profile. Here’s how we address different situations:
1. No Revenue Canada Documents
If you cannot provide NOAs or T1 Generals, you will typically need:

• A 20% down payment.
• Acceptance of higher interest rates based on your risk profile.

2. Low Stated Income with Documents
If you have valid tax documents but your reported income is low due to write-offs, the requirements include:

• A minimum 10% down payment.
• Standard interest rates, though higher default insurance premiums may apply for down payments under 20%.

3. Sufficient Income with Documentation
If you have the required documents and sufficient income, you’ll benefit from:

• Competitive rates and terms without additional restrictions.

Documentation Requirements

The Sunlite Mortgage team helps you organize the necessary documents for a smooth application process. As a self-employed borrower, you’ll need to provide the following in addition to standard requirements:

• For incorporated businesses: Two years of accountant-prepared financial statements (Income Statement and Balance Sheet).
• Two most recent years of personal NOAs and tax returns.
• 6–12 months of business bank statements (if required).
• Proof that HST and source deductions are up to date.

How We Calculate Your Income

When calculating income for self-employed mortgage applications, the Sunlite Mortgage team uses different methods to ensure you qualify under the best possible terms:

1. Average of Two Years’ Income
We take an average of your income from the last two years to provide a realistic view of your earning potential.

2. Most Recent Income
If your most recent income is lower than the previous year, we may use the latest figure to determine your eligibility.

3. Stated Income
For borrowers who cannot verify income traditionally, stated income mortgages are available. These options provide flexibility for those whose financial situations don’t fit standard models.