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Trying to qualify an Entrepreneur or business for self-owner can be a bit complex as there are different ways they can pay themselves. So, it is tricky to get f...inancing for them. How they are pay themselves and declare the income and expenses. Many business owners are not fully knowledgeable about the difference between a sole proprietor and an incorporated business. There are advantages and disadvantages and your accountant should help you to identify what is best for your business and the financial aspect. I will leave that guidance to the pro What I want to talk about is about what we look at and why we need to know these details. As you know the lender will want to see your income, as a sole proprietor you may take a draw from your profits to pay yourself but the business is parts and parcel of your personal tax declaration. So, the declared business income and expenses in your T1 for the last 2-years, will have an influence on what you can qualify for. The deposits in your bank accounts and invoices will also prove your income intake. If your business is incorporated, you may either pay yourself a draw or you may pay yourself a fixed salary every week or bi-weekly or even monthly, and or you can be given a dividend payment. So, owner will issue a T4 from the corporation and other will not. If a T4 is issued then we can use the information on that T4 as income but if it a draw then we need to see the income deposits in the bank account and compared to invoices to support the declared income. A detailed analysis of the expenses is required and either deduct or add expenses to determine the actual income. Lastly if the last year income is lower than the previous year, then the lender will use the lower income to qualify the borrower. From time to time, depending on the situation, we may need to use the average of the last 2-years income. So, as you can see, it is a bit complex but with someone like me who knows what to look for, I would say you are in good hands!

" *Limiting Gross Debt Service (GDS) ratios to 35% (from 39%). *Limiting Total Debt Service (TDS) ratios to 42% (from 44%).... *Raising the minimum credit score to 680 (from 600) for at least one borrower. *Banning non-traditional sources of down payment that increase indebtedness. " https://www.canadianmortgagetrends.com//reaction-cmhcs-n/

https://thinkpol.ca//canada-looking-to-increase-minimum-/

https://www.bpfsolutions.com//3-Factors-That-Impact-Your-C

April 2020 experienced a drop in momentum in the London and St. Thomas area (unsurprisingly) and yet, still saw an increase in average home prices over April 20...19. Real Estate is still deemed an essential service in Ontario and Realtors are exercising great caution for the benefit of their clients, and themselves to ensure everyone’s health and safety. Virtual showings, signed disclosures with mandated showing directions, 3D technology tours of homes....all are effective tools we are employing to help our clients with their goals. If there is a specific area in London that you are interested in learning about or if you are interested in a free virtual home evaluation, send me a message. I am happy to help you with your real estate goals. . . . #ldnont #realtor #realestate #sellingyourhome #buysellinvestbuild #customerservice #movetolondon #londonontario #realestateinvestor #investmentproperty #incomeproperty #covidprecautions #century21 #c21first #lovemyjob #lovemycity #gothamcity

The true cost of Home Ownership when it comes to closing costs across different markets in Ontario. https://www.zoocasa.com//first-time-home-buyer-closing-c/