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Mortgage Brokers Work with Self-employed Canadians Everyday

Mortgage Brokers Work with Self-employed Canadians Everyday

While freelancers, contractors, entrepreneurs and small business owners are considered an excellent and reliable customer group, it’s not always easy for someone who is self-employed to get mortgage financing. Salaried employees prove their income with their T4 slips. The self-employed on the other hand have a much harder time proving their earnings because they use accounting techniques to report lower income so that taxes are reduced as much as possible. This can make it harder to prove to lenders that they can afford to make their mortgage payments.

That’s why professional advice is so important. Based on your situation, your mortgage broker will advise you on the type of information you need to present to improve your options and get the best possible rate, for instance, by showing:
– documentation to prove income – tax assessments, tax returns, financial statements, contracts
– proof of a registered or incorporated business
– good cash flow
– that you are up to date with your property and income tax payments
– strong credit history
– solid net worth
– savings
– long job tenure / residential history, and
– a significant down payment

Mortgage brokers also have access to lenders that are not federally regulated and take a less stringent approach when it comes to self-employed borrowers. In fact, your mortgage broker has access to over 50 lenders, including major banks, credit unions, trust and insurance companies, and other national, regional and private lenders.

Re-advanceable mortgages are another option that your broker can review with you. It’s a great way to take advantage of increasing equity. As you create equity through mortgage paydown, the line of credit portion of the mortgage is automatically increased by the same amount. This way you can access your equity when needed without having to apply, offering you more convenience and flexibility than a traditional line of credit.

Most of all, working with a mortgage broker allows you to delegate the many time-consuming and frustrating tasks associated with securing a mortgage, so you can stay focused on running your business. And your broker will typically work around your hectic schedule.

If you are self employed, you already know it makes sense to go to a specialist to get the job done. Find an experienced mortgage broker who understands the many issues that can keep you up at night, so that your dream of home ownership is not one of them!

Please share this article if you found it interesting!

I am building my mortgage brokerage business and could really use your help. If you know anyone who is looking for information on mortgages now or in the near future, I would appreciate the referral. Thank you in advance.

Mike Knoll
Mortgage Professional
Invis
Call/Text: 204-782-9772
Email: mike@mortgagesbymike.ca

Ordinary Canadians like you can build wealth with investment property.

two houses, pad of paper, coffee cup

Ordinary Canadians like you can build wealth with investment property.

Across the country, ordinary Canadians are building personal wealth with investment property. An investment property is being increasingly viewed as a pension plan for the future, particularly since so many Canadians are not covered by workplace plans. Over the long term, an investment property can be a great source of retirement funds. Rental income typically pays for most or all expenses and property appreciation has often outperformed stocks and bonds over the long term.

This is not just an investment for well-established business people and experienced homebuyers. Savvy first-time buyers are often jumping in with both feet: purchasing a duplex or triplex, and then managing the additional units to pay down the mortgage while they make a start on home ownership. And parents who add up the cost of accommodations for their college-bound children are often deciding to be landlords themselves, seeing an opportunity to offset the cost of housing with a sound investment.

There are many reasons to consider investing in property. If you are thinking about building wealth with an investment property, talk to us. We can help you determine your downpayment options and run the financial calculations that you’ll want to see for cashflow and capital appreciation.

Please share this article if you found it interesting!

I am building my mortgage brokerage business and could really use your help. If you know anyone who is looking for information on mortgages now or in the near future, I would appreciate the referral. Thank you in advance.

Mike Knoll
Mortgage Professional
Invis
Call/Text: 204-782-9772
Email: mike@mortgagesbymike.ca