If you are self-employed and aiming for a mortgage in Calgary, the process might be more challenging as compared to the salaried employees. This is because of the income variability of a self-employed person, thus lenders see them as higher risk.

However, with proper planning and documentation, a self-employed can secure a mortgage.

How to get a mortgage if Self-Employed in Calgary?

  • Organize your financial documents: Lenders seek more extensive paperwork from self-employed applicants to verify their income stability. It is thus important to keep the important documents ready including personal and business income tax returns, notice of assessment from the CRA, Profit and Loss Accounts, Balance Sheet, Funds Flow Statements, business license or incorporation documents, contracts, invoices or proof of ongoing work. Work with the best Calgary mortgage lenders for self-employed who will ensure your documents are up-to-date to avoid delays or complications during the approval process.
  • Maintain strong personal and business credit: The personal and business credit histories can impact your mortgage application. It is important to check your credit reports regularly and address any errors or outstanding debts. A credit score of 680 or more is considered strong. Self-employed individuals must pay their bills on time, keep credit card balances low and avoid applying for new credit before applying for a mortgage.
  • Higher Down Payment: The business owners in Calgary may be asked to provide a higher down payment if their income cannot be verified easily. A larger down payment can improve their chances of approval and lower their monthly payments.
  • Reduce business write-offs: One of the significant steps for self-employed in Canada to qualify for a mortgage is to minimize their business write-offs. Consider reducing the write-offs temporarily to reflect higher net income on the tax returns.
  • Work with an experienced mortgage broker: Work with an expert mortgage broker for business owners in Calgary. They have access to multiple lenders, including those who specialize in working with self-employed individuals. They will help you find competitive rates, navigate the different mortgage options and prepare a compelling application that showcases the self-employed individual financial strengths.
  • Strong business Profile: Prepare a strong business profile that showcases the business model, history, client base and industry outlook. This will help the lenders who seek to understand your business’s nature. A strong business profile also adds credibility to your application and reassures lenders about your income stability.
  • Consider Alternative Lenders: If the traditional lenders do not approve your mortgage, consider the private or alternative lenders. They may have more flexible qualification needs, although they may charge higher interest rates and fees.

Securing a mortgage as a self-employed in Calgary requires more preparation, however not impossible. By keeping detailed financial records, improving credit score and working with an experienced mortgage advisor will help you navigate the process with ease.

Work with a professional Calgary–based mortgage broker who will table self-employed mortgage approval tips and confidently take the first step towards homeownership.