Mortgages for Self-Employed
Self Employed Mortgages in kelowna
Self-employment is becoming popular, and it is a great way to have control over your life and future. However, there are some downsides to being self-employed. For example, it is more challenging to get a loan. There are some essential things business owners have to think about if they want to prepare for their future.
Luckily, there is an option for business owners, a self employed mortgage. The one thing to keep in mind, though, is that obtaining one of these loans requires you to meet different qualifications. Knowing what you need to do before you attempt to purchase a home will save you time and prevent you from feeling frustrated during the process. Begin to prepare as soon as possible, so you are ready when the time comes.
Take advantage of our deep mortgage experience.
And lower rates, of course.
We’ve been doing this mortgage thing for quite a while (to the tune of over $19B in funded Canadian mortgages, in fact). And unlike a bank, our non-commissioned Heather Contant Mortgage broker have the freedom to check with all lenders to get you the best rate for your situation. Plus, our volume allows us to pass along a rate discount, which can add up to thousands over the life of your mortgage.
Talk to us — we make it easy, and there’s no cost and no obligation. It’s literally a no-brainer. Or simply apply now for a fast response and unbeatable mortgage advice.
What Our Cleints Are Saying
Heather was very professional and responsive to our requests. We really appreciated the time she took to sit down and determine what we were looking for in a new house. She had great inventory prepared for us to view on top of the houses we had identified to her. She was always prompt in her response to our questions and kept us up to date with changes in the status of properties.
We would definitely recommend Heatherto anyone relocating to Kelowna and we’ve suggested her name to a few people already.
Heather was very professional and responsive to our requests. We really appreciated the time she took to sit down and determine what we were looking for in a new house. She had great inventory prepared for us to view on top of the houses we had identified to her. She was always prompt in her response to our questions and kept us up to date with changes in the status of properties.
We would definitely recommend Heatherto anyone relocating to Kelowna and we’ve suggested her name to a few people already.
Self Employed Mortgages
Checklist
Are you thinking to get the self employed mortgage? We’ve compiled everything you need to know into a handy checklist. Don’t buy your first home without it!
BONUS – SELF EMPLOYED MORTAGES MISTAKES TO AVOID
Learn what not to do when it comes to you Self Employed Mortgage (fun fact – many buyers do these things which ends up complicated their mortgage buying experience)
Working with a
Mortgage Lender
It is essential to find a mortgage lender that has experience working with self-employed individuals. A lender who is willing and able to work with self-employed borrowers knows the ins and outs of getting you approved as quickly as possible, which makes the entire process a lot easier.
Verifying Your Income.
Lenders require a loan policy from a federally regulated mortgage insurer (FRMI); this offers them some protection if you default on your loan.
FRMIs have requirements that lenders must meet to obtain mortgage insurance. Some of the things FRMIs accept from a lender as proof of income from a loan applicant are:
- Documentation of verifiable income from an independent source;
- The income verification source is not easily falsified;
- The source can explicitly verify the income amount;
- That the information provided by the applicant and the independent verification source are not contradictory.
In addition, there are other regulations lenders have to follow according to regulation B-21, which governs all loans where mortgage insurance is a requirement. For example, the amount of money they are allowed to lend in relationship to the value of the home.
Planning for Your Down Payment
When you are buying a home, you need to know how much money you need to bring to the table so that you can save. As a self-employed person, the amount you have to put down is significantly higher than a typical T-4 employee.
Under the B-21 guidelines, a federal bank is only able to lend you up to 65 percent of the appraised value of the home you are purchasing. That means you will need to pay for the remaining 35 percent. So, if you are buying a house that costs $400,000, you need to put down $140,000.
Other Self Employed Mortgage Requirements
Most lenders view loans to self employed mortgages as higher risk. So, you need to make it worth their while to lend to you by having a higher credit score and a lower debt to income ratio. These two factors weigh heavily on a lender’s ability to take a chance on offering you a mortgage, so the less financial obligations you have, the better.
Avoid making other large purchases in the months before you apply for a loan to keep your debt to income ratio. Also, make sure you pay all of your bills on time and resolve any outstanding credit issues before applying for a loan.
It is important to note; there are options for people who own their own business. Obtaining a self employed mortgage just takes a bit more money and effort. However, following these simple guidelines will help you meet the requirements necessary to take out a home loan.