How Entrepreneurs Can Qualify as Easily as T4 Employees

The self-employed mortgage conversation isn’t always fair. A business owner making $200,000 in profit can qualify for HALF the mortgage of an employee making $100,000, simply because of what’s reported personally Most prime lenders look at your net income on your T1 and multiply it by roughly five. So if you only claim $50,000 to save on taxes, you may only qualify for about $250,000, even if your corporation earned much more We break down: • How lenders assess self-employed income • Why tax efficiency can reduce mortgage power • When retained earnings may help • How to plan 12–24 months before buying TIMESTAMPS: 0:00 – Why Business Owners Get Less Mortgage Power 0:35 – $200K Owner vs $100K Employee: The Breakdown 1:26 – How Lenders Calculate Self-Employed Income 2:12 – The Tax Savings vs Mortgage Power Dilemma 2:26 – Option 1: Claim More Income 2:41 – Option 2: Use Retained Earnings Strategically 3:33 – Key Takeaway: Plan with Your Accountant & Broker If you’re incorporated and thinking of buying soon, your tax strategy and mortgage strategy need to align early. Paul Davidescu (www.levelupmortgages.com) Level Up Mortgages 📞 604-809-3188 📧 paul@levelupmortgages.com See Our Google Reviews in BC & Ontario: https://bit.ly/ViewLUMReviews ⭐️⭐️⭐️⭐️⭐️ Got Mortgage Questions? We've got you covered: First-Time Buyers Manual: https://bit.ly/FTHBGuides Mortgage FAQ: https://bit.ly/mortgagefaq Email: paul@levelupmortgages.com Website: www.levelupmortgages.com Connect with us on social media: 📷 Instagram: @levelupyourmortgages 👔 LinkedIn: @pauldavidescu. 🐦 Twitter: @levelupmortgage 🎥 TikTok: @levelupmortgages 📖 Blog: https://www.levelupmortgages.com/blog Subscribe to Level Up Mortgages on YouTube: http://bit.ly/LevelUpYouTubeSubscribe #SelfEmployedMortgage #EntrepreneurLife #MortgageStrategy