Self Employed? No Problem.
Being Self Employed borrower is no obstacle when it comes to achieving homeownership. With the right lenders on your side, putting down roots in beautiful Victoria, BC can be within reach. Don’t let fear of being self-employed stop you. By working with experienced professionals who understand and appreciate entrepreneurs like yourself, you could get that mortgage approval sooner than expected. Remember, I too am self employed and know have to navigate the approval process.
Self Employed Borrower Basics
When applying for a traditional mortgage, lenders must take into account applicants’ income levels as well their financial stability. For those who are self-employed, the lender will have to assess various components of the business itself in order to make an informed decision – including its value and revenue streams, plus personal savings and assets held by the applicant.
PROS of a Self Employed Mortgage
- There are numerous programs for self-employed borrowers like you. Many of these programs take full advantage of the tax treatment provided by self employment. Programs designed to recognize the unique challenges of the self-employed applicant. These programs also capture the nuances of paying yourself from your own business. Low down payment options are available through all three of the Canadian mortgage insurance companies.
- When securing a loan for your business, the lender will likely dive into all of your financials – personal and professional. Your net worth and credit score can have an immense influence on whether or not you get access to capital needed to launch or expand operations. Staying abreast of these assets could be vital in ensuring successful financing options.
- Aspiring homeowners now have more choices than ever. We can assist you in finding the right mortgage option to fit your financial needs, whether that means paying off a loan quickly or having lower monthly payments over an extended period of time.
How to Qualify as a Self Employed Borrower
Lenders who provide mortgages to self-employed individuals will closely assess your taxes over the last few years in order to determine a reliable average of monthly earnings. If this income isn’t ideal, they may require an increased down payment or demand insight into personal assets as compensation. It’s possible to factor certain subtracted expenses back into their calculations, granting you additional wiggle room and flexibility when applying for financing on your own terms.
The Next Steps
We will begin with a review of self-employed loan requirements, as well as gather all necessary paperwork in advance to ensure an efficient process. As your broker, we may ask you provide consent so we can contact your accountant directly. (We may require additional information) Approval is typically within 4-5 days. However, it may take longer if we need additional information for the lender prior to approval.