Tag Archives: Self-Employed Mortgage Options

Typical Lending Criteria For The Self-Employed

Two things to keep in mind

Self-employedMost self-employed persons have a more difficult time getting pre-approved for a mortgage. The ideal image of a borrower by most lenders is one who has a stable job and thus a consistent stream of income as part of a regular pay cheque. Self-employed individuals rarely have this luxury.

If you would like to maximize your chances of being pre-approved for a low mortgage rate loan while self-employed, here are just some of the criteria you need to look out for:

Good Credit Score

A respectable credit score will always provide a boost to your finances and enhance your chances of getting a good deal on your Canadian mortgage rate. However, self-employed individuals can benefit a great deal from a positive credit score– in some cases, a high score may even help them win the favor of some discriminating lenders. Therefore, keep close tabs on your credit. The better your score, the better your chances will be of getting the best mortgage rate, whether you’re self-employed or employed full-time.

Established Self-Employment

You need to be self-employed for a considerable period of time. Lenders are more apt to trust you with a mortgage as a self-employed borrower if you are able to show them your stability as a self-employed income-earner. Most lenders will require you to have at least a two-year track record working for yourself.

Your ability to provide sufficient documentation is also an important factor in getting a low mortgage rate. As much as possible, you need to be able to support your income records with income statements and tax returns so you can qualify for a better mortgage rate.

Loophole May Make Credit Unions the Better Mortgage Option

New mortgage guidelines aimed at Canada’s sizzling real estate market might not be as ironclad as Finance Minister Mark Carney may have hoped. That’s because credit unions, which are provincially regulated, are not under the jurisdiction of the Office of the Superintendent of Financial Institutions (OSFI). This loophole may provide community credit unions with an important competitive advantage and borrowers with an attractive alternative to traditional lending sources. Continue reading →

What Will the Budget Bring?

According to a report in the Globe and Mail, next week’s highly anticipated federal budget should only contain “modest” spending reductions and little to no intervention in the housing market. Finance Minister Jim Flaherty delivered these and other comments outside of a volunteer firefighter station in Ottawa last Thursday. During the announcement, Mr. Flaherty stated that he would like to see if the market could “correct itself,” rather than force new regulations into place.

Flaherty’s response comes after Canadian banks requested Ottawa to institue mortgage insurance regulations in order to avoid what many areĀ foreseeingĀ as a major housing crash. The nation’s largest banks have been calling for the government to either lower the maximum amortization period for insured mortgages or raise the required minimum down payment amount for best rate mortgages.

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More Rules Rumoured for Hot Canadian Real Estate Market

The Government of Canada is considering imposing stricter rules on mortgages due to the nation’s seemingly overvalued housing market. Bank of Canada’s Governor, Mark Carney, and Finance Minister, Jim Flaherty, have been focused on the nation’s rising debt load for more than a year, stating that things must change in order to avoid serious economic repercussions. Ironically, instead of encountering a doomsday outcome, the Canadian real estate market has continued to boom as rates remain low and buyers maintain an optimistic outlook. Continue reading →

How to Get a Mortgage When You’re Self-Employed

More and more Canadians are leaving the head office for a home office, quitting corporate jobs in order to start their own companies. In fact, statistics show that nearly 20% of all income earners in Canada are now self-employed. Which is fantastic… until you need to apply for an affordable mortgage rate. Securing a mortgage when you own your own company can be difficult, especially if your business is relatively new. Today, lenders want proof of a stable income before considering adding you to their accounts. Here are a few ways to ease the process and increase your chances of qualifying for the best mortgage rates. Continue reading →