Mortgage solutions for the self-employed
Landing a mortgage is trickier for the self-employed than their salaried counterparts. If you’re self-employed, you’re best off seeing a mortgage broker a few years prior to your purchase so you can make a plan.
Self-employment is becoming more and more common in Canada, and those who choose this route are finding themselves to be very financially successful. Unfortunately, despite this success, obtaining a mortgage can still be a difficult task. With fewer methods of proving income, most lenders will tend to be more cautious about self-employed individuals when choosing to approve or decline them for a mortgage.
So what can self-employed individuals do when looking to apply for a mortgage? The first step is to start early and be prepared. You should be able to present 3 years of tax documentation that show your reported income. Next, pay down debts, build your savings and check your credit. A potential lender will want to know that you have the adequate means to service the debts you currently have, as well as the mortgage you wish to qualify for. Next, consult an Ottawa Mortgage Broker. Not only will a Mortgage Broker negotiate with lenders for you, they also have access to other lenders in addition to the major banks who may have solutions more suited to the self-employed.