You must have a good credit history and provide a minimum down payment of 10%.  With stated income, lenders are also looking for the “gross income” you report on your tax returns to be consistent to what is being stated.  Your net amount on line 150, after all of your business expenses, will likely be much smaller, and that is okay.

As a self-employed person with excellent credit, you can enjoy purchasing your primary residence with an “A” lender using 10% down as long as the property value is less than $1MM. If there is a big gap between the gross reported and what is stated, it is very likely that the lender will ask for a down payment of 20% or more or you will need to bring in another partner who shows income and good credit to help strengthen your application.

In addition to your Notices of Assessment, some of the other supporting documentation a lender may require for a self-employed mortgage application include:

• Financial statements for your business.
• HST/GST account statement.
• Current contracts/invoices.
• A copy of the GST license or Article of Incorporation showing you are licensed ( if applicable)
• Proof that your down payment is coming from your own resources

Keep in mind that every client situation is different and there will be variations to the rules. Speak with us regarding your particular situation and we can advise of the options available to you. Book a call below.