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Notices of assessment, full T1s, financial statements: what a lender requires from a self-employed borrower in Gaspésie-Îles-de-la-Madeleine, and the order to get it together.
A lender does not read business income like a salary. Some take a two-year average after expenses, others agree to add back non-recurring expenses or to look at the company’s own income. That difference in reading decides the answer, more than the amount does.
Two years of complete notices of assessment and T1s, your financial statements or balance sheets if you are incorporated, your recent business account statements. If you expect expenses to be added back to qualifying income, pull together what justifies them as well.
Current, legible, consistent: that’s the test. One page missing from a statement, or a name that doesn’t match your notice of assessment, and the file goes back for clarification.
Names, dates, balances and the origin of the funds have to match from one document to the next. An unexplained deposit is the most common reason a file stalls at verification.
If something looks off (a large amount, a missing page, records that don’t match), expect questions. Answer them before they’re asked. Gifts, bonuses and transfers between your own accounts go through easily when they’re documented.
The lender’s calendar, the insurer’s and the notary’s all have to line up. Most of the time it’s the last link that sends its confirmation after the condition has already expired.
To prepare
Yes. It all runs by phone, email or video call, and documents go through online. We can meet in person, but most files get settled without anyone having to travel.
Yes, if the declared income supports the loan. The rate follows the file, not the status. What caps the amount is net income after expenses, and that is where the choice of lender changes the result.
Pick the situation closest to yours.
Contact
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.