Are you looking for a mortgage and self-employed in Milton? We can help.
Just because you’re self-employed or work on a commission basis, it shouldn’t mean you hit a brick wall when looking to obtain a mortgage. Our team of professional mortgage brokers at MortgageMeister.com have experience working with self-employed individuals and can help you get the mortgage you need. We can help tailor a budget-friendly solution which makes sure you’ll be able to purchase your dream home without having to jump through hoops.
Mortgages For The Self-Employed
There’s no denying the fact that obtaining a self-employed mortgage is more difficult these days and a good credit score alone isn’t enough to qualify for one. There are now tighter lending rules in Canada and the big banks aren’t too keen on lending money to non-traditional borrowers. This is why potential self-employed homeowners are flocking to professional, independent mortgage brokers such as MortgageMeister.com that not only work with major banks in Canada, but with other lending institutions that have their own mortgage approval processes and criteria that may be more friendly to self employed individuals looking for a mortgage.
According to Statistics Canada, the net worth of the self-employed is typically higher than salaried employees, but they often have a harder time proving it on paper. One of the reasons for this is because self-employed Canadians may report a lower income on their tax returns for tax purposes. While flexibility with drawing income is great if you are self-employed, it can cause issues when trying to obtain a mortgage. When seeking a mortgage in past years, self-employed workers were simply asked to fill in a document which declared their income, and to prove they were self-employed.
It still may be possible to obtain a stated-income mortgage from some banks, but the lending limits are no longer the same. Banks that are federally regulated are only able to lend self-employed homebuyers a maximum of 65 per cent of the home’s purchase value. If you’re looking for more than that it means you’ll need to obtain mortgage-default insurance. Because the banks can make it hard to obtain financing, many business owners turn to mortgage brokers as the solution could be a private mortgage lender.
Let Us Help Create a Game Plan With You
MortgageMeister.com looks forward to helping self-employed homebuyers since the particulars and requirements lenders and mortgage insurance generally vary. Our team is experienced in all scenarios and has access to a wide range of lending options.
We will let you know which specific financial and business documents may be needed to help prove your income and provide guidance and suggestions throughout the process. In some cases, you may still be able to obtain a higher mortgage without default insurance. In addition, some lenders may allow you to use some of your tax deductions and add them onto your annual earnings.
Before applying for a mortgage in the Milton area, it’s recommended that you gather and organize all of your personal and business-related documents and financial statements, including your credit score. With this information, you can sit down with a mortgage broker and discuss options and strategies involved in getting you approved for a mortgage.
Most lenders will want to see at least two years’ worth of financial statements as well as your Canada Revenue Agency notice of assessment, your credit score, and proof that your GST and HST taxes have been paid. You’ll also need to prove that you’re the proprietor of your own business.
Learn all of your options
Contact us today and speak to an experienced mortgage broker at MortgageMeister.com. We’ll be able to walk you through the entire mortgage process for self-employed individuals from start to finish. We’ll help organize your documents and statements and find a suitable mortgage solution for your unique situation. Remember, being self-employed shouldn’t deter you from purchasing a property in the Milton area.