It’s not always easy to get a traditional mortgage if you are self-employed. With some of the stricter lending rules that have been implemented over the years, and the Canadian Mortgage and Housing Corporation doing away with mortgages for the self-employed, it’s made things a bit harder.
Going through an Oakville mortgage broker, however, may make things a bit easier. One of the main issues is being able to show enough proof of your earnings to the lenders. There are mortgage options for the self-employed, both with and without income validation. This is where an Oakville mortgage broker comes in. They can review your paperwork and see which option will be most beneficial to you.
Validated and Non-Validated Income
If you have been in business for 2 full years, have had the business registered as self-employed, have fairly good credit, and you have declared your income on your tax returns, it is accepted as validated income. You will still need to have enough funds put aside for a down payment and earn enough to cover your monthly mortgage payments to make the banks happy though.
But what if you don’t have a reportable income? This is where you turn to a private lender or Oakville mortgage broker. They aren’t regulated in the same way as banks are and have more flexibility. This means they can find the best mortgage option for your situation.
If you are self-employed but have bad credit, it would normally make it impossible to get a mortgage from a traditional lender. Private lenders are more concerned with your future and current earnings though. If you have a steady income and profitable business, they can usually find a mortgage for you.
What if you are self-employed but have a low income? There are lenders who can find you a low or no-income mortgage! They will comb through your paperwork to see if you have tax deductions that can be added to your reported income percentage, which works to increase your mortgage eligibility as well.
Self-Employed and Over 55
Over 55 and self-employed? No problem! Your Oakville mortgage lender can help to secure you a mortgage that doesn’t focus on the fact that your long-term earning potential is less than it used to be based on age.
Oakville mortgage brokers are licensed mortgage professionals who know all of the in’s and out’s of every persons’ life situation. Because they are independent, they have access to a wide range of private lenders, many of which specialize in helping self-employed people secure a mortgage that is fair.
One of the biggest differences between traditional lenders and private lenders is that private lenders are less concerned with your credit history than banks are. Where a bank looks at your credit history and sees you as a risk if your credit has been poor in the past, a lender looks at what your income in the present is and whether this is sustainable in the future. They can be much more flexible with the paperwork needed as well. Just because you are self-employed doesn’t mean you can’t get on the property ladder. There are many options to look into with an Oakville mortgage broker.