First Foundation understands that many self-employed people withdraw less personal income from their company in order to reduce their personal income tax. While this is great for tax purposes, it requires a special approach when it comes to qualifying you for a mortgage.
Many of our lenders, have programs for people whose reported income is not sufficient to qualify. On your part, you must provide us with documentation for your company, including (but not limited to) T1 Generals (with statements of business activities), Certificate and Articles of Incorporation, and Notices of Assessment from the Canadian Revenue Agency.
It should also be noted that some lenders will charge a premium on mortgage rates for self-employed persons to compensate for the higher perceived risk of the borrower. This premium is usually not in excess of 0.15%, therefore you can rest assured you are still getting a great rate!
Self-employed people that declare a reduced salary.
- Qualify based on your stated income
Flexible documentation requirements
- Minimum 2 years self-employed
Notices of Assessment showing no taxes owning to the CRA