If you’re self-employed, chances are, you’ve found that securing a mortgage can be more complex than it is for salaried individuals. Lenders often scrutinize your income more rigorously, which can prove challenging. This is another great example where a mortgage agent is an invaluable partner.
Demonstrating consistent income can be difficult if you’re self-employed because many business owners take advantage of tax deductions, which can reduce your taxable income, making mortgage qualification more difficult. Your mortgage agent understands how to present your financial situation in the best light, leveraging add-backs and other strategies to demonstrate your true earning potential.
Mortgage agents appreciate the importance of helping self-employed individuals with all your mortgage needs since you’re part of a diverse group working in a variety of industries, including mortgage agents! In 2023, self-employed individuals accounted for 13.2% of the employed population, according to Statistics Canada.
Access to multiple lenders is key
Your mortgage agent has access to a broad range of lenders, including banks, trust companies, alternative lenders, credit unions and private lenders. Many of these lenders specialize in mortgages for self-employed borrowers, so they’re often more flexible in assessing income using stated-income mortgages, for instance, that look beyond traditional pay stubs to consider documents like Notices of Assessment (NOAs), bank statements and invoices.
Navigating the mortgage process can be overwhelming, especially with the unique documentation requirements for self-employed applicants. A mortgage agent acts as your guide, helping you compile the necessary paperwork and ensuring everything is submitted correctly. This expertise not only saves you valuable time and energy, but it can also improve your chances of approval.
While mortgage products specifically catered to the self employed offer flexibility, many lenders will still evaluate your credit score, debt load and business stability. That’s why partnering with your mortgage agent every time you need a mortgage – whether you’re purchasing a new home or renewing/refinancing an existing mortgage – is a smart choice. It simplifies the mortgage process by helping navigate potential roadblocks and get you qualified for a mortgage.
Have questions about your self-employed mortgage options? Answers are just a call or email away!