Self-em­ployed, seek­ing mort­gage

Metro Canada (Toronto) - - ENTERTAINMENT - Jef­frey Cowan For Metro Canada

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.


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