A business can have strong sales while its owner receives income in several different ways. Start with an organised explanation rather than a guessed borrowing amount.
1. Draw a simple income map
List your businesses, ownership interests and how money reaches you personally. Separate revenue from expenses and personal compensation. Note whether you are incorporated or operate as a sole proprietor, without assuming that one structure is automatically easier to finance.
2. Prepare a timeline of changes
Record when the business started, any major ownership changes, and whether recent results differ from earlier years. Ask which tax and financial records the proposed lender needs. A generic list is a starting point, not a complete application checklist.
3. Protect operating cash
Separate money needed for business operations, taxes and personal reserves from money intended for a purchase. Ask your accountant about the consequences of withdrawing business funds; the mortgage conversation does not replace accounting advice.
Questions to bring to our conversation
- Which income figures would the lender assess?
- Which records explain recent changes in the business?
- What funds can I use without disrupting operations or tax obligations?
Further reading: FCAC: Mortgage pre-approval. General information; lender requirements and individual circumstances vary.