Income tax preparation is different for a self-employed compared to a person that is salaried
For their mortgage, most banks and lenders require them:
- To have a greater amount of down payment when purchasing a home.
- Different documentation for assessment
Self-employed borrowers seeking to purchase a home are supported by the mortgage insurance companies in Canada in very specific ways:
- Understanding their way of generating income and contributing to the national economy is one of them
- When for self-employed is not possible to provide traditional income verification, but can prove a some time of history (some lenders requirements are different) of responsibly managing their business and documentation via third-party arm’s-length and declaring a yearly income, with reasonable results according to their industry and type of business and other ways.
Self-employed borrowers historically have offered to banks and lenders a higher level of risk, when time comes to repay their mortgage loans, therefore self-employed borrowers should expect:
Watch the following mortgage for self-employed clip
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