Buying a home and getting a mortgage can be complicated. Adding the factor of being self employed, can make the process a little overwhelming. Rest assured, you have come to the right place to make the process as seamless and stress free as possible. As well as to get the best mortgage rates and best mortgage options for you needs.
There are many benefits with being self employed such as pay for performance, flexible working hours and write-offs. However, sometimes those write offs can affect buying a house when a lender is looking at your two year average net annual income.
With the right planning we can make qualifying for a mortgage while being self employed easier.
Self employed mortgage solutions for Ottawa
To get started, here are some mortgage tips for self employed individuals:
Reduce your deductions in the years leading up to buying a house. This will help increase your Line 150 from your Notice of Assessments. Therefore, this will increase your average income that a lender will use to qualify you.
Keep an eye on timing. If you are planning on taking time off work, maternity leave, traveling, parental leave, etc, this could reduce your average income.
Have your taxes completed by a certified accountant instead of doing them yourself. Many lenders will use the T1 Generals if prepared by an accountant to show them a better snapshot of your income and expenses.
Talk to an Ottawa mortgage broker about self employed programs. Although some traditional lenders have moved away from stated income programs, there are still some great programs available with lenders. More options are important when it comes to being self employed. Also, with stated income mortgages a lender can look to your gross income instead of your income after deductions.
Increase your down payment or add a second mortgage. With 20% down, a lender will not typically need to follow the mortgage insurer’s (ie CMHC) more rigid guidelines. This may allow you more flexibility.
To learn more about applying for a mortgage when self employed, I invite you to contact me today.