Qualifying for a mortgsge on self employed invome
Hello,
Do lenders look at your before tax business income or net income?
Thanks
Do lenders look at your before tax business income or net income?
Thanks
Qualifying for a mortgsge on self employed invome
- Last Updated:
- May 24th, 2022 1:35 pm
Tags:
- SCORE0
- BacktoCanada2015 [OP]
- Newbie
- Aug 27, 2021
- 74 posts
- 74 upvotes
12 replies
- RealtorInvestor
- Member
- Jul 2, 2018
- 312 posts
- 305 upvotes
What type of work do you do?
Realtor + Investor
- bigEfromGP
- Sr. Member
- Sep 28, 2008
- 561 posts
- 45 upvotes
From what I've been hearing lately (a few months ago from 2 seperate friends who are self employed), lenders wanted to go through the business finances pretty thoroughly.
- joepipe
- Deal Addict
- Jul 3, 2007
- 4123 posts
- 4596 upvotes
- Toronto
depends on the lender but generally they look at all of it, I am self employed and CIBC looked at my corp income, retained earnings and personal income.....BacktoCanada2015 wrote: ↑ Hello,
Do lenders look at your before tax business income or net income?
Thanks
try talking to one of their mortgage reps, I got my mortgage quite easily from them.... and they are known as one of the more flexible banks
if that fails, you can try a broker and some alternative lenders, but you will pay more in rate and fees typically....
- dougboswell
- Deal Addict
- Jul 11, 2010
- 1288 posts
- 324 upvotes
- Toronto
Actually mortgage agents can usually get you lower rates than some of the big banks offer. On A application deals you should not be charged any fees. On B deals usually there is some type of fee . If you are being asked for a fee you need to ask why.joepipe wrote: ↑ depends on the lender but generally they look at all of it, I am self employed and CIBC looked at my corp income, retained earnings and personal income.....
try talking to one of their mortgage reps, I got my mortgage quite easily from them.... and they are known as one of the more flexible banks
if that fails, you can try a broker and some alternative lenders, but you will pay more in rate and fees typically....
Doug Boswell
intelliMortgage Inc. Brokerage #12326
FSRA #MO09002332
intelliMortgage Inc. Brokerage #12326
FSRA #MO09002332
- nimfomanijak
- Sr. Member
-
- Apr 24, 2013
- 882 posts
- 661 upvotes
- Waterloo
I was wondering the same. I have just been to TD and spoke to an advisor and she took my gross income and I am a self employed sole proprietor . I was surprised
- BacktoCanada2015 [OP]
- Newbie
- Aug 27, 2021
- 74 posts
- 74 upvotes
I was told gross self employed income as well.nimfomanijak wrote: ↑ I was wondering the same. I have just been to TD and spoke to an advisor and she took my gross income and I am a self employed sole proprietor . I was surprised
I run my own bookkeeping business and don't have many expenses.
I guess it depends on the industry as well
- BacktoCanada2015 [OP]
- Newbie
- Aug 27, 2021
- 74 posts
- 74 upvotes
Bookkeeping serviceRealtorInvestor wrote: ↑ What type of work do you do?
I work from home.
My only expenses are office supplies and my car. Part of it
- Redsanta
- Deal Addict
-
- Dec 16, 2015
- 4401 posts
- 4351 upvotes
- Toronto
Cook the book so u got 5x the income
To the moon
- Jzking
- Newbie
- Nov 16, 2018
- 58 posts
- 10 upvotes
Would you mind sharing the contact info of the TD advisor ? I did reach out and was told gross income won't be considered.
- BacktoCanada2015 [OP]
- Newbie
- Aug 27, 2021
- 74 posts
- 74 upvotes
- BacktoCanada2015 [OP]
- Newbie
- Aug 27, 2021
- 74 posts
- 74 upvotes
my broker said if you are a sole proprietor, all the lender looks at is 2 years on Tax returns showing you self employed incomebigEfromGP wrote: ↑ From what I've been hearing lately (a few months ago from 2 seperate friends who are self employed), lenders wanted to go through the business finances pretty thoroughly.
Any taxes owing need to be paid
Only a corporation needs to show financial statements etc
- BacktoCanada2015 [OP]
- Newbie
- Aug 27, 2021
- 74 posts
- 74 upvotes
I am a sole proprietor. If you are incorporated its completely different.joepipe wrote: ↑ depends on the lender but generally they look at all of it, I am self employed and CIBC looked at my corp income, retained earnings and personal income.....
try talking to one of their mortgage reps, I got my mortgage quite easily from them.... and they are known as one of the more flexible banks
if that fails, you can try a broker and some alternative lenders, but you will pay more in rate and fees typically....
All you need as a SP is filed tax returns showing your self employed income