Mortgage Articles

Advice for the Self-Employed Who Apply for Calgary Mortgages

Self-employed people often feel it is harder for them to obtain a mortgage and this can be true depending on who is working for them. Lenders can be more stringent when it comes to lending money to self-employed people because one of the largest obstacles is proving income. Since most self-employed people write-off a large portion of their income, they may fall below certain guidelines set forth by some lenders. Fortunately, Alberta Equity has several years of experience finding mortgages for self-employed people.

The following information is for self-employed people who are applying for a mortgage in Alberta:

• Business License: Proves the length of time you have been in business. Most Calgary mortgage lenders require that self-employed people have at least a two-year operation history.
• Documenting Income: Most Calgary mortgage lenders will take the average of your last two years of income. For example, if you made $40,000 the year before last and $60,000 last year, your average income would be $50,000.
• Income Tax Notice of Assessments (NOA): NOA's are important because they prove that you claimed income during a particular tax year in Canada. They also prove you have no income tax owing currently or income tax owing from previous years. This is vital as all lenders in Canada want to ensure you have no other extra outstanding debts. Money owing to Revenue Canada is considered a debt by lenders.

In certain situations, some of these conditions can be waived. Check with your Calgary mortgage broker to see if any of these conditions apply to you.

Alberta Equity has helped over 50,000 people find and qualify for the best mortgages in Canada for over ten years. We do all of the heavy lifting and ensure that you get the best mortgage rates and product features available. Apply online for a free, no obligation consultation or alternatively, view our products and services.