Mortgage Loans Self-Employed
Business for self or self-employed income is becoming commonplace in Quebec. Yes, there are some risks involved, but the rewards are well worth it.
But when it comes to qualifying for a mortgage, it can be a bit more complicated! Since the bank views the self-employed client as a little riskier compared to a salaried person, they will be more stringent in their income verification process. One of the main reasons that a self-employed person can be refused is due to their tax returns. The bank wants to see a minimum of 2 years of Notice of Assessments. It will then average out the 2 last years and add + 15% to income. If you only have one year of working for yourself, you will not be able to qualify with traditional lenders, but there are other financing options available.
If you have 25% and up for a down payment, there are chances of obtaining mortgage financing and even alternative financing. Not all lenders are created equal. Some will accept verbalized income if they can see significant cash flow in your bank accounts for at least the last 6 months. If you have between 20% and 25% down payment, there might be alternative financing solutions available, but this is on a case-by-case basis.
Self-employed person refused for mortgage loan because of credit
You can be refused a mortgage loan due to low credit rating or certain debts that are currently in collections. An in-depth analysis of your credit score will help determine the next steps in order to establish the right strategy for correcting defaults, such as:
- Debt collection
- Credit bureau errors
- Wrong amount registered on your credit report, etc.
Once these issues have been addressed, a certain amount of time will be required for your credit rating to go up and for you to requalify for a mortgage.
If it is an absolute must for you to move into your new home today and you have the appropriate amount of down payment and incomes, we can make it happen for you!
Home Value
Amount Owing on Your Mortgages
Equity
Equity
The Right Strategy
Financial Success !
Does this sound like your situation?
You’re self-employed in the trucking industry and currently renting because your credit or tax returns make traditional mortgage financing difficult.
Then you find the right property: a home with enough land and a large garage to store your trucks and equipment.
Right now, you’re paying rent for your home plus storage for your business. You start wondering: Could I buy this property, combine these expenses, and potentially save money every month?
The answer may be yes.
If you have a down payment of 25% or more and sufficient cash flow, there may be alternative financing options available—even if the income reported on your latest Notice of Assessment doesn’t fully reflect what your business is currently earning.
In certain cases, we can use 12 months of bank statements to demonstrate your actual cash flow and help you purchase the property now.
The goal?
Buy the property today, stabilize and structure your finances, then work toward returning to a traditional bank within 1 to 3 years.
Every file is different and subject to lender approval, but a low declared income doesn’t necessarily mean your homeownership plans have to stop.
Ready to explore your options?
Complete our online form and let’s see what can be done.
Easy Application
1. Apply Online
Use the form on this page or call 1-888-708-5576 to speak to one of our representatives.
2. Get approved
Approved within 24 hours. Your home equity is the key to your approval. Get approved now!
3. Get your funding
We make it easy. Loan funds can be deposited directly into your bank account, once approved.
Contact Us
- 2525 blv Daniel-Johnson, Laval, QC, H7T 1S9
- nectarios@solutionshypotheques.ca
- 1-888-708-5576