Mortgage For Self Employed

Getting a mortgage when self-employed

Self Employed Mortgages

15% of Canadians are self-employed

According to Statistics Canada, 15% of the Canadian workforce is self-employed. That’s nearly 3 million people. The same source informs us that the self-employed earn more than those in formal employment. Still, these people find it more difficult to qualify for a loan. It is often more difficult for them to prove their income for the required period.

When you’re self-employed your income is often inconsistent and hard to predict This is why self-employed people are considered higher risk. To mitigate the risk banks often require reams of paperwork, and a mortgage can take a lot longer to finalise.

To make matters worse, any good businessman ensures that they claim any allowable expenses from their income for the purposes of taxation. This has the effect of reducing the annual income and in so doing reducing the size of the mortgage for which the borrower will qualify.

This is because lenders use your debt to income ratio to determine the size of the loan they will give you. It is used to calculate the size of repayments that you can afford.

Most lenders will require at least two years of proven earning before offering a loan. If you qualify for the amount that you have requested and you are able to prove your income your mortgage application will be treated like any other employed applicant.

Consult your broker

We'll save you thousands and yet we cost you nothing!

Preparing ahead to secure
the mortgage that you want

You can prepare ahead so that when it comes to securing a mortgage
you are in the best possible position to do so.

Credit Score

A good credit score will put you in a position to negotiate a reasonable interest rate. Before you even apply for a loan it is a good idea to pay off as many debts as you can.

Reduse Your Expenses

Together with your mortgage broker, you can work out whether it is better to reduce your claimed expenses over the period or whether paying a higher interest rate is a better option.

Lower Interest Rates

Save up for a decent down payment. The more that you have invested in your property the less the risk to the bank and the lower your interest rates will be.

Full Potential Earn

Don’t plan a long holiday over the period. You need to earn at your full potential.

To do this you will have to plan well ahead so that you can reduce your expenses over the required two-year period. Plan your high-value purchases to fall outside of that period.

We can help you

to plan for the day when you require a mortgage

If you’re self-employed a mortgage broker can help you to plan for the day when you require a mortgage.

At Certified Mortgages Brokers, we have professional staff with years of experience
in finding the right mortgage for the self-employed.

We will ensure that you know what information lenders require and we can help you to prepare so that the application process runs smoothly.

We have dozens of lenders on our books and we can find you the best rates and the terms and conditions that meet your lifestyle requirements.