Appendix ID: self-employed-mortgage-package
Business profile interview
| Question | Response |
|---|---|
| Legal business name(s) | |
| Operating name(s) | |
| Sole proprietor / partnership / corporation | |
| Ownership percentage | |
| Industry and services | |
| Years operating | |
| Prior experience | |
| Main customers and concentration | |
| Seasonality | |
| Employees/subcontractors | |
| Business premises | |
| Current borrowing | |
| Taxes/remittances current? | |
| Expected material changes |
Sole proprietor/partnership documents
- [ ] Two years T1 General
- [ ] Two years NOA
- [ ] T2125 for every business
- [ ] CRA statement of account where required
- [ ] Business registration/licence
- [ ] GST/HST returns where relevant
- [ ] Business bank statements
- [ ] Contracts/invoices/pipeline
- [ ] Partnership agreement and ownership evidence
- [ ] Explanation of material year-over-year changes
Corporation documents
- [ ] Articles and amendments
- [ ] Current corporate profile
- [ ] Shareholder register/beneficial ownership
- [ ] Two years accountant financial statements
- [ ] Current interim statements
- [ ] T2 returns/assessments where required
- [ ] Business bank statements
- [ ] T4/T5 slips and payroll/dividend evidence
- [ ] Corporate debt schedule
- [ ] Intercompany and shareholder-loan explanation
- [ ] Retained earnings/liquidity analysis
- [ ] Accountant contact and authorization where required
Income reconciliation
| Income component | Year 1 | Year 2 | Current YTD | Lender treatment |
|---|---|---|---|---|
| Salary/T4 | ||||
| Dividends/T5 | ||||
| Sole-proprietor net income | ||||
| Partnership income | ||||
| Corporate NIAT share | ||||
| Eligible add-backs | ||||
| Other income | ||||
| Less double counting | ||||
| Qualifying income |
Bank-statement analysis
| Month | Gross deposits | Less transfers/loans/tax | Adjusted revenue | Estimated expenses | Supportable income |
|---|---|---|---|---|---|
| 1 | |||||
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 | |||||
| 6 | |||||
| 7 | |||||
| 8 | |||||
| 9 | |||||
| 10 | |||||
| 11 | |||||
| 12 |
Self-employed underwriting narrative
- Why does tax income differ from actual business capacity?
______________________________________________________________________
- Which lender calculation is being requested, and why does it apply?
______________________________________________________________________
- Which expenses are proposed as add-backs, and what proves they qualify?
______________________________________________________________________
- Has any salary, dividend or corporate profit been counted twice?
______________________________________________________________________
- What is the business downside scenario?
______________________________________________________________________
- What cash remains in the business after closing?
______________________________________________________________________
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