Self Employed Mortgage
With new mortgage rules, obtaining a mortgage for self-employed individuals has become more difficult. Those who work for themselves are often facing a much more strenuous process.
How Self Employed Mortgages Differ
Unlike salaried employees, those who work for themselves don’t receive regular pay, nor do they receive a printed T4 at the end of the year. While they may be making a decent amount of money, their income is best described as ‘inconsistent.’ For this reason, many of the major financial institutions consider self-employed individuals high risk.
What to Expect
If you’re self-employed, you should expect to pay higher interest rates than those commonly advertised on mortgage websites. Those rates are for prime borrowers, or borrowers who are considered to be particularly creditworthy because of their steady, verifiable income. Similarly, you may have a reduced ability to shop around and negotiate a lower interest rate, or be required to come up with a larger down payment. Working with a qualified mortgage broker will help you through the entire process.
Securing A Self Employed Mortgage
A mortgage broker will help ensure the lender knows you can make your payments, no matter what business is like. Here’s what you’ll need to provide in order to secure a mortgage:
Proof of Income
In most instances, you’ll be required to provide proof of steady income over two years. Lenders will take into consideration that small business owners claim expenses, which can make their income appear lower.
Excellent Credit History
A good credit score will help you immensely. Keeping your personal debt levels low will increase your chances of securing a mortgage.
Keep a file of important documents including tax returns and business registration in case your lender needs them. Make copies, if necessary.
Larger Down Payment
While 5% can be deemed acceptable for salaried employees, self-employed individuals should expect to be required to have at least 10% and as high as 20% as a down payment. Talk to your GLM Mortgage Group professional for more information.
One more thing to consider is the location of your business, which may help determine whether it’ll prove busy and profitable year-round.
While the journey to home ownership can be daunting, we’ll ensure you have all the information you need to make a sound decision and help you understand all your options. It’s important for you to do your own research as, the more you prepare yourself, the more desirable you’ll be in the eyes of the lender.
What is the GLM Mortgage Group?
GLM Mortgage Group, powered by Dominion Lending Centres, is your Vancouver and Lower Mainland Mortgage Brokerage service. We are always ready to move forward with you to obtain the mortgage you need with the sharpest mortgage rate available. Whether it’s a fixed rate or variable rate mortgage you are after, we are dedicated to finding the best mortgage rates in Vancouver, including Home Loans, Consolidation Loans, Lines of Credit and more. No matter what you need, our team of Mortgage Specialists will follow through to find the best mortgage product that fits your individual circumstances. Our free online mortgage calculator keeps you informed on how much your mortgage payment will be as well as show how different mortgage rates will affect the mortgage you require.As your Vancouver mortgage broker, GLM Mortgage is committed to clear communication with our clients. We make sure you are informed on all the mortgage options available to you. We call you back within 90 minutes to make sure that you have the fastest service available. We are not only available in Vancouver and the Lower Mainland, we are also available across Canada.GLM Mortgage Group is your Vancouver mortgage specialist. With over 22 years of experience in the investment industry we know how to wade through the challenging process of getting a mortgage. We provide smarter options to putting your mortgage in place. We know how important it is to have an experienced professional Mortgage Specialist available to walk through your mortgage experience and stay with you through to the very end.We get you a fast “YES” at the sharpest rate… guaranteed! Call us now so that you can get that mortgage you’ve been waiting for. We already have been working for you, making sure that you will have every option of a mortgage available to you. GLM Mortgage Group is on call for you!