ANDREA MCCAW
VANCOUVER ISLAND – As a mortgage specialist for Coastal Community Credit Union, I know that sometimes it’s a challenge for business owners large and small to secure personal residential mortgage financing. It may require a flexible and creative approach to both optimize your business’s tax liability and show enough income to qualify for a mortgage.
A good strategy to help you dive into home ownership is to speak with your accountant to let them know you want to purchase or refinance a personal mortgage. They can help you find the best way to balance your taxes and income.
Here’s a few tips to keep in mind to help you with your mortgage application:
- Generally, you must be in business and file taxes for a minimum of three full years—though occasionally an exception can be made.
- If you have any established short or long term rental income on personal properties, you must claim it on your personal tax returns to use it to help you qualify you for a mortgage.
- For sole proprietors, have your mortgage specialist look at your net income in case you can add back items from your tax return such as interest, amortization, and business use of home.
- For corporate or incorporated businesses, income that can be considered comes in the form of T4s and T5 dividend statements. You can also ask your mortgage specialist to ana-lyze your corporate financial statements to see if you are able to use any additional income to strengthen your application.
- Good credit is key to a successful mortgage application—get a copy of your credit report well before you apply for your mortgage, so you have time to improve your score if needed.
- If your business pays for any personal liabilities such as a car payment, let your mortgage specialist know if it is for business use and if the payment is coming out of a business account.
Speaking to a mortgage specialist will help you review your unique situation to get your full financial picture. If you would like to know how Coastal Community can help, please contact me at 250-618-3553 or andrea.mccaw@cccu.ca.
Andrea McCaw is a Mobile Mortgage Manager with Coastal Community Credit Union.
