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Discussion Starter #1 (Edited)
Hey folks,
We started looking to purchase our family home and had no success with the banks as my husband is self-employed. We had applied for a bank loan to purchase our first home with the help of a broker. At the last minute, an issue raised regarding incorrect paperwork. Choosing the right mortgage broker that understands our financial setup is now crucial to us. As recommended by my friend, we decided to hire a company that provides mortgage professionals. She told me that mortgage brokers have expert knowledge on investment property mortgage Canada. Can anyone share some tips to deal with mortgage brokers?
 

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If you mention the city your in you may get some better results. If you live in Ottawa I know a few good ones I have used. But would not recommend them if your in another city.
 

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We have a very good mortgage broker in this forum :) As for being self employed they generally go by the last 2 NOA , recently we learned you cannot even count RRSP income on Mortgage applications .I have a large RRSP and started drawing down $xx,xxx a year 4 years ago and when I went to apply with my son they could not consider this income so my husband had to get involved as he has high T4 income ,this was March 23 so some covid-19 fear was there I suppose and this was with a 20% downpayment.It is all good though :)
 

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We have a very good mortgage broker in this forum :) As for being self employed they generally go by the last 2 NOA , recently we learned you cannot even count RRSP income on Mortgage applications .I have a large RRSP and started drawing down $xx,xxx a year 4 years ago and when I went to apply with my son they could not consider this income so my husband had to get involved as he has high T4 income ,this was March 23 so some covid-19 fear was there I suppose and this was with a 20% downpayment.It is all good though :)
I’ve been able to use RSP income occasionally. If it’s been drawn down for number of years, and there is enough to draw down for another 15-20 years, it can sometimes be included. At that point though, you May be starting to encroach on a lender’s high net worth policy where income becomes less important.

in the “old days” we simply used line 150 on a NOA. The last few years saw a deeper dive which primarily focused on employment income and business income. Line 101 and 135 if memory serves me correct...........While trying to strip out what are deemed less consistent sources.....investment income, rsp income.
 

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Hey folks,
We started looking to purchase our family home and had no success with the banks as my husband is self-employed. We had applied for a bank loan to purchase our first home with the help of a broker. At the last minute, an issue raised regarding incorrect paperwork. Choosing the right mortgage broker that understands our financial setup is now crucial to us. As recommended by my friend, we decided to hire a company that provides mortgage professionals. Can anyone share some tips to deal with mortgage brokers?
For self employed individuals I would start to gather:
  • 2 years NOAs. If the variance between years is > 15-20%, then perhaps get a 3rd year and be prepared to explain the variance
  • 2-3 years full T1 general tax returns
  • business license or articles of incorporation
  • you may need to prove that an active operating account exists
  • you may need to prove that the business has been operating for 3 years
  • 2-3 Business Financial Statements
 
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