find self-employment to be a fulfilling way to make a living, whether as a freelancer,
gig worker or small business owner. In fact, October 2021 data from Statistics
Canada showed that more than 13% of the country’s workers are self-employed.
there is a common misconception that getting approved for a mortgage as a
self-employed home buyer is difficult to the point of being impossible.
is that being self-employed doesn’t mean you won’t be approved for a mortgage.
It just means that the application process and requirements may be different
from someone with a traditional full-time job.
in mind, we look at some ways you can prepare to apply for a mortgage as a
self-employed home buyer.
complete records of all your income sources.
stable source of income shows that you can make the required payments to
service a mortgage, so make sure your income flow is well documented and can be
easily verified by lenders.
documents that can help you prove you have a stable source of income include:
- Notices of
- Bank statements
- Financial statements
- Contracts and agreements
- Business or professional licenses
a good credit score.
credit score is an important part of a mortgage application that lenders use to
evaluate your application. As such, it’s important to understand the components
that make up a good score and take the necessary steps to maintain it.
effective ways that can help you maintain a good credit score include:
- Paying the
full balance of your credit cards on time,
- Keeping the utilization of your credit card limit to 30% or less, and
- Avoiding hard inquiries on your credit history.
a larger down payment.
down payment increases the value of your interest – or equity – on your home,
which in turn widens the range of financing options you can potentially qualify
important to note that saving for a larger down payment takes planning and
dedication. Please reach out to a One Link Mortgage Professional for strategies
that can help you get started.
steps to reduce your debt.
the balance of any existing loans you have will reduce the number of monthly payments
you have to make. This will allow you to free up your cash flow and make it
easier to service your mortgage.
with an experienced mortgage broker.
brokers are licensed professionals who will listen to your entire financial story
and work with you to find the best solution to meet your needs. An experienced mortgage broker will also be familiar with the ins and outs of the housing
market and have close relationships with lenders to provide solutions around
your financial circumstances.
preparation and help for a skilled mortgage broker, entering the housing market
as a self-employed home buyer does not have to be stressful. When you are ready
to begin, the trusted Winnipeg Mortgage Brokers at One Link will be there to
assist you. Contact one today: 204-954-7620 or email@example.com
Source: Duffie Osental – Home Trust Company