Self-Employed Mortgage Experts in North Bay
As a business owner in North Bay, I know how hard it is to qualify for a mortgage. Your dedication to your craft, whether you’re a skilled tradesperson, a creative freelancer, or the owner of a restaurant, is what makes our community thrive. At Sherwood Mortgage Group, we believe your ambition should be your greatest asset, not a hurdle. That’s why we specialize in securing self-employed mortgages in North Bay, Ontario, helping business owners like you achieve your dreams of homeownership.
Qualifying for a Mortgage as a North Bay Business Owner
For a standard employee, getting a mortgage is a straightforward process. But for us self-employed folks, who often write off expenses to lower our taxable income, the path is more complex. Traditional lenders may only see the net income on your Notice of Assessment (NOA), which often doesn’t reflect your true financial strength. This is where we come in.
Overcoming the Challenges of Self-Employed Mortgages
It’s a struggle, I know:
- The “Write-Off” Problem: You’ve worked hard with your accountant to minimize your taxable income, but now lenders are using that same low number to assess your borrowing power.
- Fluctuating Income: Your income may not be a steady bi-weekly paycheck, and traditional lenders struggle to assess stability with a variable cash flow.
- Proving Your Worth: You’ve been in business for years and have a strong track record, but the documentation requirements can feel overwhelming and rigid.
How We Simplify the Process for North Bay Entrepreneurs
We have built our expertise around solving these challenges. Our goal is to present your unique financial story to lenders who understand and value the self-employed borrower. By focusing on your overall business health, credit history, and long-term potential, we can look beyond the numbers on your tax return and find a lender who will work with you.
Your Local Self-Employed Mortgage Solution
Your mortgage journey should feel personal and local. You need a partner who understands the rhythm of North Bay life, whether you’re working from the Port’s downtown co-working offices, or you have a warehouse on Main West.
Why a Local Expert Matters
My name is Joel Arndt. I’ve grown up in the North Bay area, graduated from West Ferris, and built my business here. Our real estate market has its own nuances. Whether you’re buying your first home in Birchaven, a waterfront property on Silver Lady Lane overlooking Trout Lake, or a quiet lot on Tower Drive, my team knows the area and the lenders who are active here. We are not a faceless bank; we are part of this community, and our reputation is built on the success of our local clients.
Our Experience with North Bay’s Business Community
We have helped countless small business owners, contractors, and freelancers across North Bay and the surrounding area secure the financing they need. We understand that your business is more than just a job—it’s your passion. It’s our privilege to help you translate that passion into a secure, stable home for you and your family.
Self-Employed Mortgage Solutions Tailored for You
Sherwood Mortgage Group works with over 50 lenders—from major banks to specialized lenders who cater exclusively to self-employed individuals. This means we can find the perfect solution for your unique financial situation. We offer a range of mortgages for business owners and self-employed home loans to meet your specific needs.
Stated Income Mortgages
If you don’t claim enough income on taxes to qualify, we have alternative solutions. A Stated Income mortgage is a program offered by some lenders that allows you to “state” a reasonable income based on your gross revenue, rather than your net taxable income. This can be a fantastic option for business owners who have excellent cash flow but a low net income due to write-offs. We will walk you through all your options to find the best fit.
Bank Statement Loans
For business owners with consistent cash flow but limited documentation, a bank statement loan can be a good alternative. Instead of relying on tax returns, we can analyze your business bank statements to determine your true income and ability to repay the mortgage. This is a powerful tool to prove your financial strength when traditional methods fall short.
Mortgage Qualification Process for Business Owners
Step 1: Let’s Connect
The first step in qualifying for a mortgage when you’re self-employed is Discovery Call. Let’s chat, no strings attached. I’ll get to know you and your business, and you can tell me about your goals and concerns. This is the perfect time for me to answer all of your initial questions qualifying for a mortgage. You can pick a date and time that works best for you here.
Step 2: Complete your application
Whether you’re buying a home, renewing your current mortgage, or refinancing your home, I want the application process to be as easy as possible. Once we’ve spoken, you can complete a secure mortgage application right here. This provides me with the initial information I need to begin our work together.
Step 3: Gather your documents
After reviewing your application, I’ll provide you with a clear, concise list of documents that lenders will need to qualify you for a new mortgage. This may include things like proof of income, ID, tax forms, etc.
Step 4: Credit report & analysis
With your permission, I’ll pull a full credit report. Don’t worry—as a licensed mortgage agent, this doesn’t hurt your credit score, not like applying for a new credit card. It simply gives us a comprehensive view of your financial health, which is really important for getting the best rates.
Step 5: Debt-to-income ratio
With your credit and income documents, I will calculate your debt-to-income ratio and find out how much mortgage you could qualify for.
Step 6: Submit to lender
The next step depends on if you’re buying or refinancing. But ultimately, we have to submit your application to the lender that fits you best. From there it’s just a matter of working with the lender to satisfy all conditions and make sure everything goes smoothly right through closing.
What Our North Bay Business Clients Say
“Joel was very helpful, and professional. If you’re looking for a mortgage or to refinance he’s 100% the guy you should call!” – Alain P. Owner of Platinum HVAC
“Helpful and responsive. Easy to reach. Would recommend.” – Alyssa K. Registered Psychotherapist
“I can’t recommend Joel highly enough! He truly knows all the ins and outs of the mortgage process and made what could have been stressful feel simple and straightforward. Joel is incredibly knowledgeable, patient, and always available when you need him — I really appreciated how easy it was to reach him whenever I had questions or needed advice. If you’re looking for a mortgage broker who genuinely cares and will guide you every step of the way, Joel is the one to call!” – Alex V. Owner of True Centre Auto Service
Frequently Asked Questions (FAQ)
The most common way is to show a two-year history of stable or increasing declared income on your tax returns. However, lenders also consider factors like your credit score, down payment size, and the health of your business. We specialize in finding flexible solutions for those who don’t fit the traditional mold.
It’s difficult, but not impossible. While the vast majority of lenders require two years of tax returns, some will consider alternative documentation such as business bank statements, which demonstrate a consistent flow of revenue.
You will typically need your last two years of T1’s (including all schedules and form) and Notices of Assessment (NOAs), business registration documents. We may need personal and business bank statements. If your business is incorporated, you may also need accountant-prepared financial statements.
Most traditional lenders require a minimum of two years of self-employment history. If you just started in business, though, there is a program for entrepreneurs who’ve been operating for 6 – 24 months through CMHC (Canada Mortgage and Housing Corporation).
Yes. Many lenders will take an average of your income over the past two years. We work with lenders who understand seasonal or project-based income and can present your application in a way that highlights your financial stability over time.
Lenders primarily use the “net income” declared on your tax returns (Line 13900 on your T1). For some self-employed programs, they may use a “stated income” that is based on your gross revenue and is deemed reasonable for your industry.
If you have a strong down payment, excellent credit, and at least 2 years of history in the industry (not just as a business owner), we have a few options from prime and alternative lenders.
Lenders are typically hesitant to use projected income as a primary qualifier. However, for a well-established business with signed contracts or a strong pipeline of future work, we can sometimes use this documentation to strengthen your application and demonstrate future stability. There are also programs that allow us to use projected income for new medical professionals.
A commercial mortgage is used to purchase a property for business purposes (e.g., an office building, a retail storefront), while a residential mortgage is for a personal home where you live. If your business is run from your home, you will need a residential mortgage. There are exceptions that allow residential mortgages on properties that contain a small commercial unit.
The minimum down payment is typically 5%, but for some specialized self-employed programs, lenders may require a larger down payment of 10% or more. A larger down payment can often lead to more favourable terms and rates.
Ready to Secure Your Mortgage?
Don’t let the complexities of being self-employed stand in the way of your homeownership goals. Our team is passionate about helping our local North Bay business community grow and thrive.
Contact me today for a free consultation, no strings attached.