Printable View
just wondering how it all works once you have a home daycare in terms of showing proof of income to the bank if applying for a loan or mortgage. this is the first year that I have been opened and just curious what the laws are for this if in Ontario?? thanks:)
I had to show my notice of assessments for the previous two years from filing my income taxes. They didn't care what I was making this year only what I made last year and the year before. And they based it off of my net income (What I made minus all of my expenses) so it didn't help us much to get a new mortgage. It's a good thing my husband had a regular job :-)
Yes, you need at least two years worth of NOA.
Some banks will not consider your self-employed earnings although more and more these days they do. Just be sure when you do negotiate the mortgage that you use a figure that is less than being full as in you don't want to have to be full to pay the bills. Better to base it on being half full and then anything extra is a bonus but also easier to carry expenses should you be down for awhile.
Our bank did consider my income and I had to get signed statements from each of my daycare families stating how much they were paying me. But they wanted Notice of Assessments as well.
My bank issued me a credit card since I've been self employed and now they want me to take out a line of credit, silly fools! I keep telling them I'm self-employed but all they need are my tax returns for the past 3 years.