Mortgage

[flamingelephant]

just call a mortgage broker and find out... set up an appointment, they will usually come to you. You will get your answer in about 1 day. The broker takes your info and runs it by a bunch of lenders (big canadian banks, other lenders) and comes back to you with the best potential rates. You are very young but 18 is legal and no reason based on your age about qualifying for a mortgage. The kicker is that you are self employed. Banks treat self employment income differently than "normal" employment income.

I would suspect that you would not get approved for a mortgage based on the following:
-it sounds like your business is not incorporated, and you don't own it. If people just pay you and not a company for your services, its not really viewed as a job (employment) to them
-it soulds like you dont declare the income to the CRA, you cant prove your income that way either, you also have a tax liability
-from what I know, most lenders will need you to have owned the business for at least 2 years and prove income over that time.

So, you can incorporate formally, run it as a formal business, keep books, declare income and wait 2 years. This is the only way you will get approved through a normal lender... I guess there is the off chance you could get approved by one with a higher interest rate... probably 3-15 % higher than a normal rate, but that wouldn't make sense to do....

If you want to move out, rent for a year or 2. Money isn't that big of a deal for you based on your income. If you plan on doing your business full time after school, or start doing it right now, sit down with a lawyer and structure it into a formal business with books, and all the stuff that goes with it. Then in 2 years get your 350k house.

But dude, your 18..... a house is alot of responsibility... your business takes up alot of time.... houses sound cool, but they require alot of work!

PM me if more ??'s

Calgary? No housing bubble there.... big boom town

 

[akubi]

Originally posted by: pr0
Stability is a very good point. If you look at it in perspective, I have been doing this business for the past 6 months with no problems however, if something were to fail I would be in a tight situation.

are you in the pr0n business by any chance? :laugh:

 

[Wizkid]

I had to provide 2 years of Notice of Assessments to verify my business income when getting my mortgage in Ontario. You will not be approved by anyone. I suggest you rent an apartment and invest your money instead. Buy some stocks or mutual funds with a goal of earning 5% ish over the next few years. Then when you are done school you should have lots of $ saved up, plus a few years of history. Then you will be able to buy a house and get a mortage without any problems. You will actually be further ahead financially this way b/c your interest rate on a mortgage would suck right now. Increase in house value - interest paid will likely be less than what you can earn by investing your money. This will change quickly though as your ability to obtain a low-interest mortgage increases.

 

[bleeb]

gl

 

[dugweb]

post links to your webpages

 

[CTrain]

Originally posted by: dugweb
post links to your webpages

We called shens already.

 

[jdini76]

Originally posted by: OBW96

Originally posted by: jdini76
Also renting an appartment will help your credit rating when applying for a mortgage.

I've never heard of a landlord reporting to a credit bureau. The only time they might do this is if you do not pay rent and it goes to a collection agency...but not when you pay your rent. If anything, you will have reference that you pay on time...but nothing to do with a credit score.

Maybe so, but there are other things associated with renting. there is electric bill? gas bill? cable bill. all these things can affect your credit. am I wrong?

 

[Kelemvor]

Have you tried other banks or just Mortgage companies themselves?

 

[Kenazo]

Originally posted by: flamingelephant
just call a mortgage broker and find out... set up an appointment, they will usually come to you. You will get your answer in about 1 day. The broker takes your info and runs it by a bunch of lenders (big canadian banks, other lenders) and comes back to you with the best potential rates. You are very young but 18 is legal and no reason based on your age about qualifying for a mortgage. The kicker is that you are self employed. Banks treat self employment income differently than "normal" employment income.

I would suspect that you would not get approved for a mortgage based on the following:
-it sounds like your business is not incorporated, and you don't own it. If people just pay you and not a company for your services, its not really viewed as a job (employment) to them
-it soulds like you dont declare the income to the CRA, you cant prove your income that way either, you also have a tax liability
-from what I know, most lenders will need you to have owned the business for at least 2 years and prove income over that time.

So, you can incorporate formally, run it as a formal business, keep books, declare income and wait 2 years. This is the only way you will get approved through a normal lender... I guess there is the off chance you could get approved by one with a higher interest rate... probably 3-15 % higher than a normal rate, but that wouldn't make sense to do....

If you want to move out, rent for a year or 2. Money isn't that big of a deal for you based on your income. If you plan on doing your business full time after school, or start doing it right now, sit down with a lawyer and structure it into a formal business with books, and all the stuff that goes with it. Then in 2 years get your 350k house.

But dude, your 18..... a house is alot of responsibility... your business takes up alot of time.... houses sound cool, but they require alot of work!

PM me if more ??'s

Calgary? No housing bubble there.... big boom town

He doesn't need to incorporate if he doesn't want to, he could quite easily just run it as a sole proprietorship. The income will all go on Schedule 2124 of his T1. Taking his personal notice of assesment in to the bank should be fine. (Assuming this isn't shens and he's been claiming the income). Keep in mind that computer programming services are GST taxable, so he'll have to be registered for that... Also keep in mind that all your business related expenses are deducted from your income, and you can claim back GST on all of these purchases too.

If you have any questions drop me a PM.

<- accountant in Manitoba, I'm sure our rules are close enough to get helpful suggestions for you wherever you are.