Hi,
Does anyone know how the self-employment (for Incorporated Numbered business) mortgages work? I am looking for the one and having some difficulties. I am an IT consultant and Incorporated. I pay myself minimum each month with the remaining amount goes into my Business account. Now, I am looking for a mortgage and the agents so far I have talked to are not considering my Business income for the mortgage pre-approval. With the personal income, I can't get eligible. The frustration is, even if I have necessary income and down payment, I haven't got a good feedback in obtaining the mortgage under Incorporated business. My company is pretty stable with the last 3 years of regular income to show.

I know, I should have increased my personal income from the Business beforehand, but I didn't do it. What now? Any suggestions, or work around? Has anyone done that? I can't believe they make it so hard for Businesses to obtain mortgage based upon their incomes. Unbelievable.

Please advise.

Do you retain income in business or disburse all out as salary or dividend ?

Speak to some Bank Agents . They should have a way.

The last time I met with one , she told me that despite the fact that IT Contractors may show less salary they had formula to establish their repayment capacity and capability.

If the Inc is consistently having good income , I do not think that the Mortgage people would like to lose their business esp when you are putting down payment.

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Fido.

Yes, I retain income in business. Have a stable and ongoing deposits on a weekly basis for the past 3 years.

I am going to talk directly to the Bank instead of Brokers. Looks like, the latter are clueless by and large, based upon my experience.

Pls check your PM

Quote:

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Originally posted by febpreet

Yes, I retain income in business. Have a stable and ongoing deposits on a weekly basis for the past 3 years.

I am going to talk directly to the Bank instead of Brokers. Looks like, the latter are clueless by and large, based upon my experience.

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Growing Old Is Mandatory ..Growing UP is Optional

Talk to Pramod Chopra - a responsible and experienced member of this board who does mortgages. If he can do it, he will do it for you, and if he cannot, he will explain to you in detail why not. Very soft spoken and helpful person.

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Chandresh

Advice is free – lessons I charge for!!

Thanks Chandresh. I surely will contact him.

FP - in my case , I disburse the income as dividend / salary .. so it ends up showing in my personal bank account.

In case they do not accept your retained business income , you might want to ask them how about if it is disbursed to the shareholders .... You might do that once and once your mortgage is formalized , put it back into the business as an advance / loan.

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Fido.