While freelancers, contractors, entrepreneurs and small business owners are considered an excellent and reliable customer group, it’s not always easy for someone who is self-employed to get mortgage financing. Salaried employees prove their income with their T4 slips. The self-employed on the other hand have a much harder time proving their earnings because they use accounting techniques to report lower income so that taxes are reduced as much as possible. This can make it harder to prove to lenders that they can afford to make their mortgage payments.
That’s why professional advice is so important. Based on your situation, I will advise you on the type of information you need to present to improve your options and get the best possible terms. For instance, by showing the following I can paint a picture that will mitigate lender risk:
- Documentation to prove income – tax assessments, tax returns, financial statements, contracts
- Proof of a registered or incorporated business
- Good cash flow
- That you are up to date with your property and income tax payments
- Strong credit history
- Solid net worth
- Long job tenure / residential history, and
- A significant downpayment.
I also have access to lenders that are not federally regulated and take a less stringent approach when it comes to self-employed borrowers. In fact, your mortgage broker has access to over 50 lenders, including major banks, credit unions, trust and insurance companies, and other national, regional and private lenders.
Many mortgage product options are available for Self-employed individuals also. Recently I helped a Self-employed customer find a near-perfect home in Cochrane. Well, actually the realtor found it, but I gave the realtor a valuable tool that expanded the home search criteria. The tool is a mortgage product called Purchase Plus Improvement. It allowed the customer to add a finished basement to a home that otherwise would have not met their criteria. All the work was done and paid for with inexpensive mortgage money!
Most of all, working with me allows you to delegate the many time-consuming and frustrating tasks associated with securing a mortgage, so you can stay focused on running your business. Also, I will typically work around your hectic schedule.
If you are self employed, you already know it makes sense to go to a specialist to get the job done. Call me and I’ll get started right away!
Mortgage Associate - (Mortgage Intelligence)
1535 – 19 Street NW
Calgary AB T2N 2K2
We hope you enjoyed this weeks guest blog post courtesy of one of our Home Sweet Home Team preferred mortgage specialists. If you already have qualified for a mortgage and are interested in buying a Calgary home please Contact Us today or post the features that you are looking for in a home on our Post Your Wants Page and we will find you your dream home!
Home Sweet Home Team