SELF EMPLOYED QUALIFYING FOR A MORTGAGE - AL NENSHI

SELF EMPLOYED QUALIFYING FOR A MORTGAGE - AL NENSHI

SELF EMPLOYED - QUALIFYING FOR A MORTGAGE

 AL NENSHI

1-403-540-3000

ALNENSHI@TELUS.NET

Qualifying for a Mortgage as a Self-Employed Applicant.


If you are self-employed, you can still qualify to buy a house, but it can be a bit trickier as most lenders will require a track record of consistent income. The standard is a two-year average of your net taxable income. Lenders do recognize that many self-employed individuals will make legitimate tax deductions in order to reduce their taxable income. If you don’t pay taxes on the income, the lenders will most likely not accept anymore then the net declared income.
If you’re self-employed and show a HIGH net income, and can prove that you’re earning a healthy gross income and that your deductions are limited to your field you’ll be good to go. Your income tax portion will not be brought down.

For example: If a net line 150 income was $98,000 in year one, and was $122,000 in year two the 2-year average is: $98,000 + $122,000 / 2 = $110,000
$110,000 is the number we use as the 2-year average of income.

Lower annual incomes will show different brackets of down payment requirements and financing options. A trained mortgage professional should be able to review your financial statements and find items that may be allowed to be ‘added back’ into your income. Call me to check out your options today!


Contact Information

Photo of Stewart J. Lowe &  Associates Real Estate
Stewart J. Lowe & Associates
Real Estate Professionals Inc
202 5403 Crowchild Trail
Calgary AB T3B 4Z1
Direct: 403-850-0669
Fax: (403) 476-7608