Self-Employed Mortgages in Abbotsford and the Fraser Valley
Being your own boss has many rewards, but getting a mortgage often isn’t one of them. Many self-employed people earn a good living, yet banks turn them down because the income on their tax returns looks too low. I help self-employed borrowers across Abbotsford, Chilliwack, Mission, and the Fraser Valley find the right path to approval, including options the big banks don’t offer.
With more than 20 years in banking and access to a wide range of lenders, I understand how lenders look at self-employed income. I offer consultations in English, Urdu, Hindi, and Punjabi.
Who I help
– Truck drivers and owner-operators
– Contractors and trades
– Small business owners, incorporated or sole proprietors
– Commission earners
How self-employed borrowers qualify
Two years in business. Lenders generally want to see that your business has been operating for at least two years. For owner-operators and sole proprietors, lenders usually average your income from your last two years of tax returns.
The documents lenders ask for:
– T1 General tax returns and Notices of Assessment for the last two years
– Business financial statements
– For incorporated businesses: your Notice of Articles and Certificate of Incorporation
– For sole proprietors: your GST number
– Recent bank statements
The most common mistake self-employed borrowers make
Many self-employed people have strong gross income, but at tax time they claim enough business expenses that their declared net income ends up very low. That keeps their taxes down, but it also means a traditional lender will only look at that low number when deciding how much they can borrow, and it’s often not enough to qualify.
If you’re planning to buy a home in the next year or two, talk to me before you file your taxes, so you and your accountant can make an informed decision.
Stated income mortgages: an option when your tax returns don’t tell the full story
If your declared income is too low to qualify with a traditional lender, a stated income mortgage may be the answer. Instead of relying only on your tax returns, these programs look at what your business actually earns.
To apply, you’ll usually need 12 months of business bank statements. If you’re a sole proprietor and your business deposits go into your personal account, that’s generally acceptable too.
Stated income mortgages come with different requirements than a traditional bank mortgage. A minimum 20% down payment is required, and the interest rate may be higher. I’ll walk you through the options and costs so you can choose what works best for you.
Frequently asked questions
How long do I need to be self-employed to get a mortgage?
Usually at least two years. Lenders typically average your income from your last two years of tax returns.
My tax returns show low income. Can I still get a mortgage?
Often, yes. A stated income program looks at your business bank statements instead of only your declared income. You’ll usually need 12 months of business bank statements and a minimum 20% down payment.
I’m a sole proprietor and my business income goes into my personal account. Is that a problem?
Generally, no. For sole proprietors, business deposits into a personal account are usually acceptable.
What documents do I need if my business is incorporated?
Along with your tax returns and Notices of Assessment, lenders will ask for your Notice of Articles and Certificate of Incorporation.
I’m a truck driver. Can you help me?
Yes. I work with many truck drivers and owner-operators across the Fraser Valley.
Ready to start?
Let’s talk about your situation, with no cost and no obligation. Call me at 604-807-6428 or email faisalwaheed@dominionlending.ca. I meet clients at my office in Abbotsford and by appointment in Surrey.