Self-employed and needing a mortgage? We’d better talk…

December 1, 2013 | By | Add a Comment

Self-employed mortgage - Toronto mortgage broker | Ingrid Bjel McGaugheyLately there’s been a lot of talk about the mortgage rates in Canada, and expectations that they might not be changing much over the next year or so.  What hasn’t been a big part of the conversation is that the government might be looking at different ways of tightening the mortgage market, that are not related to rates.  One of these is tightening the rules around how self-employed income is treated.

Self-employed people have a lot of tax write-offs

… and this is a good thing, isn’t it?  Well, it is a great way to reduce the amount of tax you owe.  However, it is not such a great way to qualify for a mortgage, or at least, as large a mortgage as you might need.  Many lenders require that you show a two year track record of earnings on your “Line 150” net income on your tax return.  If you have a lot of write-offs, your Line 150 income could be quite low.  As such, you need a lender who is “business for self” friendly, and who understands the self-employed customer.  That’s where we come in.

Mortgage brokers give you more self-employed mortgage options

Because independent mortgage professionals such as myself work with many different mortgage lenders, we can find you the ones that will give you the flexibility that you need.  I strongly believe that the decision for which lender you go with must be based on which lender is going to be the best fit for you, for your goals, needs, and financial situation.  That means I focus on “customer first”, rather than “bank / lender first”.

Check out our latest issue of the “Your Home and Mortgage” newsletter, for more info on this and other topics.

And if you’d like to learn more about what a mortgage broker can do for you, check out this article.

For more information on changing mortgage rules, and how they apply to you, with no obligation, please get in touch!



Filed in: Canadian Mortgage News, Mortgage Broker Benefits, Purchase, Refinance | Tags: , , , , ,

About the Author (Author Profile)

I'm a Toronto Mortgage Broker. My focus is on saving people time and money in financing and re-financing their homes. Am passionate about helping people make informed choices, giving back, and helping to improve financial literacy in Canada.

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