Stated income mortgages for self employed

We have had a few clients inquire about stated income mortgages if they are self employed.

The number one question: Can I tell the lender what income I make and they just accept it?

Short answer - no.

Longer answer - A stated income program looks to prove a self employed person's income in a different way than a standard mortgage. For a standard mortgage, the applicant proves their income by providing a combination of T4s, paystubs or a letter of employment, as requested by the lender. For a stated income program, we are able to use bank statements showing payment deposits to establish income. The lender will require a minimum of 6 months and up to a full year of bank statements to establish that income is consistent. Lenders will also require a business licence and expect normal business expenses to be deducted from the income. Lenders that have stated income programs keep current on the typical income for most professions, and will do their due diligence to ensure that a company is legitimate.

Not all stated income options are the same, with each having specific lending criteria that borrowers need to meet. We have access to some great products, and would be happy to find the right one for your mortgage needs.