Investing in Your Business and Your Home

Getting a Mortgage as a Business Owner

As a small business owner, securing a mortgage can seem challenging due to the unique financial situation that comes with running your own business. Unlike conventional salaried jobs, owners often invest their income right back into their business, taking only what is needed for themselves. Unfortunately, this can cause difficulties when applying for a mortgage.

At SamWise Mortgages, we understand the unique needs of owners, and can work with you to get a competitive rate and sufficient funding to buy the dream home to match your hard work. Contact us today for more information!

Common Questions For Business Owners

How Is My Income Calculated?

Traditional bank lenders, who often provide the cheapest rates, usually base income on the average of 2 years of tax returns. For sole proprietors, this can be in the form of your T1 and NOA from the CRA. For individuals who have corporations, business statements can help increase the amount you are eligible to qualify for!

Does My Year to Year Income Matter?

Generally, lenders recognize the average income to smooth out fluctuations between years.

Are There Special Mortgage Programs For Small Business Owners?

Yes, there are mortgage products tailored to self-employed individuals in Canada. Some Canadian lenders offer stated income programs, where they consider your income based on the nature and stability of your business rather than just your reported income. There are also private lenders and credit unions in Canada that specialize in offering mortgages to those with non-traditional income sources.

Can I Use My Business Assets As Part Of My Down Payment?

Yes, in some cases, Canadian lenders may allow you to use business assets as part of your down payment. However, these assets must be easily convertible to cash and should not negatively impact the operation of your business. You may need to provide additional documentation to prove the legitimacy and liquidity of these assets.

Can I Get Pre-Approved For A Mortgage As An Owner?

Absolutely! Getting pre-approved for a mortgage is a smart step for any homebuyer, including sole proprietors. A pre-approval gives you a clear understanding of how much you can afford and locks in a mortgage rate for up to 120 days. It also shows sellers that you’re a serious buyer. At SamWise Mortgages, we can help you gather the necessary documentation and guide you through the pre-approval process with Canadian lenders.

I still have more questions! Who can I talk to?

Get in touch with our team today to find out how you can get qualified at competitive rates and fund your dream home!