Mortgage Blog

Getting you the mortgage you deserve

Self-Employed and Looking for a Mortgage?

November 8, 2019 | Posted by: Ana Cruz

Are you self-employed? Do you worry about qualifying for your mortgage or any other type of financing? If so, you are not alone. 

In 2018, there were 2.9 million Canadians who reported being self-employed. The self-employed workers accounted for 15% of total employment in Canada.  There must be something in the water.

As self-employed individuals, we have some decisions to make when it comes to mortgage financing.

I always say, ‘do you want to pay the mortgage man or the tax man?” 

What do I mean by that? 

There are many benefits on being a self employed individual in Ontario, with a number of eligible write off which enable you to lower your taxable income. 

You work hard and feel that you should be rewarded for it, however you go to the bank and looking to qualify for a mortgage and are told that you do not qualify. This is the frustration with many self employed individuals. 

As self-employed we feel that we work hard and we should be able to reap some rewards such as lower mortgage interest rates and sadly that is not always the case. 

If you declare too little net income (line 150 on your tax return) then you may not qualify for the home you want with the bank.  Even though you can afford it financially, on paper that is not the same. 

With the year coming to an end - this is the time to plan for the next years income

If you are self-employed and want to know your options - let’s talk. 

Ana

ana@askanacruz.ca | 905.870.0513

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