Well yes, it is possible! Qualifying income is the only difference in qualifying for a mortgage between a salaried individual and a self-employed individual .

For each situation here is the solution

For a salaried individual income is established with a written confirmation of employment , specifying the date of hire , his annual salary, his status ( permanent, temporary, full or part time ) and the title of his position . A recent pay stub will confirm all of the above this means that if the person has just gotten a raise , it will be taken into account.

For the self-employed, his income is based on the past, averaging the last two years of declared income , confirmed by review of federal and provincial notice of assessments. It is also possible to increase the average by 15% to cover expenses for the home office and car, for example.

And if your reported income does not match your budget reality?

Some mortgage insurers like Genworth and Canada Guaranty offer programs responding to this particular situation.

Genworth and Canada Guaranty

The program Alt –A from Genworth also uses ” common sense” to analyze your case. For example, if your business has been operating for two years , the bank and Genworth look at your entire record rather than just the numbers displayed on your personal income tax return to determine your qualifying income.

Certain conditions must be met:

• 10% down payment required
• Owner occupied 1 or 2 units
• A good credit score : Beacon score of at least 650
• Being in business for at least 2 years
• No arrears on your taxes

This program is also offered by Canada Guaranty.

Another option: the equity loan

Some institutions may grant you your mortgage if you are in business for over 2 years , if you have a perfect credit score, if your tax bills are up to date and if you give 35% down payment .

Each financial institution sets its own rules in addition to those established by the mortgage insurers to analyze your case. A mortgage broker becomes a major partner in your efforts when you ‘re self-employed , to help you make the right choice.

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