For entrepreneurs in Kelowna, traditional mortgage applications can present unique hurdles due to how income is structured—often with legitimate write-offs that reduce net taxable income. Specialized self-employed mortgage programs address this. Instead of relying solely on net income, these programs allow lenders to consider factors like your Kelowna business's gross income, cash flow, and overall financial health. This tailored approach means your entrepreneurial success isn't a barrier to Kelowna homeownership; it simply requires the right expertise.
How long do I need to have been self-employed to qualify?
Most lenders prefer to see at least two years of established self-employment history, though exceptions can sometimes be made for strong applications with a shorter track record.
Do I need a larger down payment than a traditionally employed person?
Sometimes a larger down payment can be beneficial, but options with as little as 5-10% down may be available, particularly if you can provide strong income verification through alternative means.
Is it significantly harder to get a mortgage if I'm self-employed?
It can present different challenges, but it's not necessarily harder with the right expertise. Specialized programs and lenders are designed to accommodate self-employed individuals.
What kind of documents will I typically need to provide?
Common documents include business registration, 2-3 years of financial statements, personal and business tax returns (Notices of Assessment), and proof of down payment.
How do lenders view my income if I'm self-employed?
Lenders may use specialized programs that look at gross business income, “add-backs” for certain write-offs, or stated income approaches, rather than just net personal income.