Self-employed, seeking mortgage
than the average salary of someone in Canada. Is there a way to avoid this problem?
The problem with self-employed individuals is that they often have lower income due to legal but not necessarily straight-forward write-offs.
Chartered banks like to see simple T4’s that they can assess very easily and give their fairly quick consent to a mortgage. There are secondary lenders who will consider self-employment income and it is generally to these lenders taking advantage of write-offs causes your income to appear lower, making a mortgage harder to secure. that self-employed people looking for mortgages have to turn to. Typically, the interest rate is higher with these lenders because they see self-employed people as higher risk.
This is somewhat ironic considering that when a person who works for a large company and is let go, they may spend months looking for a new position while selfemployed people are generally much more self-reliant and obviously, less likely to be unemployed.