Real Estate

Financing rules - self employed

  • Last Updated:
  • Jan 2nd, 2021 4:05 pm
[OP]
Member
Jan 21, 2010
252 posts
61 upvotes
YUL

Financing rules - self employed

Hi guys. What are the rules to qualify for a regular mortgage rate as self employed? Are banks looking at regular steady income? I've been employed in the past years and thinking about going as self employed in 2021, in the same field that I currently work in. Is it going to be a problem if I need a mortgage in mid 2021? Income will obviously be a lot higher as self employed.
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Deal Expert
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Jan 27, 2004
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T.O. Lotto Captain
financeg wrote: Hi guys. What are the rules to qualify for a regular mortgage rate as self employed? Are banks looking at regular steady income? I've been employed in the past years and thinking about going as self employed in 2021, in the same field that I currently work in. Is it going to be a problem if I need a mortgage in mid 2021? Income will obviously be a lot higher as self employed.
2 years notice of assessment and financial statements of your company.
Member
Dec 23, 2012
479 posts
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RICHMOND HILL
I got a mortgage as both an employee and self-employed with similar income and the experience was the same, with the same bank (TD).
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Aug 11, 2011
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Toronto
Don't quit before getting your mortgage. You will need 2 years history as self employed so you won't qualify. Get house first then go off on your own. Gl
[OP]
Member
Jan 21, 2010
252 posts
61 upvotes
YUL
I've quit my job because of a better offer at a consulting firm. They offered to keep me as a regular employee on their payroll or have me as an independent contractor. Financially it makes more sense for me to go that way and be self employed.
But you're saying it's better to stay on their payroll as a regular employee until mortgage is signed. I think I'll go that way....
MikeTO2 wrote: Don't quit before getting your mortgage. You will need 2 years history as self employed so you won't qualify. Get house first then go off on your own. Gl

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