Small Changes Can Complicate
Renewing with your current lender is often straightforward, even if you are self-employed, but things change quickly if you want to refinance, switch lenders,
A refinance triggers full requalification under current lending guidelines, and that is where self-employed borrowers often encounter challenges.
It is sound practice to reach out to aDiamondMortgage well ahead of your renewal date so that they can help you properly prepare for the road ahead.
Typical documentation for a self-employed mortgage application
- Two years of personal T1 Generals
- Two years of Notices of Assessment confirming taxes paid
- Business financials or T2s if incorporated
- Business registration documents
- Six to 12 months of business bank statements
- Evidence that personal credit is being actively built in Canada
If qualification with a traditional lender is not possible at renewal, a short-term alternative lender mortgage may be appropriate. These lenders assess the overall financial picture, including credit, equity, and cash flow, rather than relying solely on tax returns.
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