Mortgages for the Calgary Self-employed

The self-employed and getting a mortgage

Lets face it the self-employed comprise a large amount of Calgary’s job market. Imagine what Calgary or Alberta would be like without those innovative and energetic people had not chased their entrepreneurial dreams. Unfortunately, even though these individuals may actually be more financially successful than ever, they often do not fit traditional lending requirements. The core problem for those self employed is providing the typical documentation to prove personal income. An astute business owner with a good accountant will work hard to minimize taxable income for the business; a smart financial management strategy. But when lenders plug those figures into their lending formulas, they may conclude that you are a high-risk borrower. Historically it has been pay a higher rate or put more money to compensate for the extra risk the lending institution is taking.

Now some banks actually specialize in lending to the Self-employed Calgarian. Self-employed people may even have an edge in most circumstances in proofing almost nothing for documentation and having the same or even better mortgage options as the T-4 employee. Stated income products which actually allow you to state what you make in a year instead of proofing with what you declare to the government. Especially here in Calgary, real-estate investors are using this to increase their portfolio and capitalize in such a red hot market. The best options for the business owner are not offered at major banks so it is best to consult with your mortgage broker about all the new changes and products.