Getting Pre-approved for a Mortgage in Ontario (Toronto)

[Anthony Panepinto]

Hey, hey!

Your help is appreciated here folks.

So, I am looking at 3 properties that I've ran the numbers on and look like they will work well for the BRRRR method.

With that said, I would like to place offers and see which ones bite - to make the deal smoother for the seller, I'd like to get pre-approved for a mortgage. 

With that said, I've begun discussions with a Mortgage agent at TD bank (I'm based in Toronto) and given that I run my own tech company, I fall under the "self-employed" category and as any business owner knows, if you can keep money in the company there are great tax benefits. On the flip side, my salary is low because I have kept a lot of the profits in the company. This is causing some issues with getting pre-approved for a mortgage and the agent mentioned that I will need a co-sign with a strong salary and that they will also HAVE TO be on title. 

I'd rather NOT get a co-sign because I'd like to manage my own risk completely, at least at this stage as I am buying my first investment property. 

Are there any tricks, tips, or ways to get pre-approved with a low income as a self-employed business owner?

P.S. if there are any local mortgage brokers here (from Toronto, or Ontario) that are interested in working with me, please DM. 

I will continue reaching out to other banks, however, I want to approach them in a way that will make it easier for them, so your help is much appreciated here!

Thanks so much!

With much gratitude.

[Roy Cleeves]

You could try a Heloc on your primary home if you have enough equity to cover the costs.  Or you could try commercial lending yet they would probably need more units to deem it commercial. 

Consider having your company own the property instead of you.  That might help in the financing since the company may have a strong income. 

You could do private lending as well. They might not mind your income issue yet would probably require more down payment. 

Talk to many different mortgage brokers that are not tied to one bank.  Look for mortgage agents that have done a lot of investment property. 

Good luck.