What is a Mortgage For Commission Earners?
Getting home loans for commission earners and self-employed workers can pose particular challenges.
A commission earner doesn’t typically have the same income stability that salaried workers enjoy. This segment of the Canadian labour force, like a real estate agent, can apply for a regular mortgage to purchase or refinance a home, but the process can be onerous and may result in higher interest rates. Contact us to help you though the process!
Make Your Commission Earnings Count!
Some of the highest earners in Canada work on commission. Commission-based employees are paid a higher rate of commission than those who receive a base plus commission and, typically, they have no income ceiling. Despite this, it may be challenging to obtain a mortgage given that it’s difficult for lenders to assess their complete income.
When applying for a mortgage, it’s important to choose a lender that will accept 100% of your commission income rather than just 50%, as is common practice. In particular, many lenders won’t accept any of your income if there are signs of inconsistency. This can occur simply because you took a holiday or because of a seasonal dip in sales. Our team works with lenders that may accept 100% of your commission income, depending on your circumstances.
Lenders are typically cautious of relying on a commission worker’s income as it’s not guaranteed and can fluctuate. Lenders are more comfortable with those who earn a regular monthly salary, but there are many who will work with you to secure a loan. Call GLM Mortgage Group or inquire online to speak to one of our expert mortgage brokers today.