Self Employed Home Buyers
Self Employed individuals have historically had a hard time securing a mortgage. The reason is that It’s harder for financial institutions to verify the income for the self-employed. It really doesn’t need to be this hard.
It’s wise to meet with a professionally licensed Mortgage Agent. I will make sure you have access to some very competitive mortgage programs, enabling you access to homeownership, like an employee with a comparable income.
The key to getting a great mortgage as a self-employed home buyer is working with the right mortgage lender. Some financial institutions are wary of working with self-employed individuals and are more likely to work with those who can verify income with a large, established employer.
Then there are those Canadian lenders who appreciate the unique considerations of these hardworking, entrepreneurial individuals.
Special Mortgage Programs for Self-Employed Individuals
More innovative lenders in Canada are aware of These unique considerations. These include the tax write-offs that significantly reduce the amount of declared income for these self-employed individuals, for example.
This is why these mortgage lenders offer special programs, such as the stated income mortgage, which offers the following benefits:
- Buyers are not required to prove income to secure a mortgage
- A realistic estimate of the buyer’s annual income is good enough
- A down payment as low as 10% is acceptable Same mortgage interest rates as other buyers
Things to make note of when securing a stated income mortgage
- A Notice of Assessment could be required if there is any doubt about your income tax debts
- The stated income on this form will not influence whether or not you’re approved for the mortgage.
- Estimated income mortgages may also come with somewhat higher insurance fees.
It could be worth it to make your dreams of home-ownership come true. Connect with me today, for further details