Being self-employed has a lot of advantages – you can work from home, set your own hours, be your own boss.
One significant downside, however, is trying to apply for a loan under the new mortgage rules in Canada. Because entrepreneurs declare their income differently, your chances of getting approved for a mortgage with the new, stricter rules are tougher than ever. That is why we put together everything you need to know about applying for a mortgage when you’re self-employed.
Mortgages for the self-employed: what you need to know
We understand that when you are self-employed, you may claim a lower income for tax purposes – or may have a more complex tax return. Under the new mortgage rules, showing a lower income is an issue that can cause you to fail the financial stress test.
How our alternative brokerage can help with mortgages for the self-employed
Unlike banks, which focus on income, Freedom Capital focuses on equity. That means we take a deeper look into your finances than just your tax returns. We consider your assets and savings, providing us with a broader sense of your financial situation.
Also, we only expect you to show that you can make your payments, whereas the new financial stress test required by the banks forces you to qualify for a loan rate that is higher than the current rate.
All of this allows us to give you common sense lending options that make your dream home a reality today – not sometime in the future.
If you are self-employed and ready to start to a mortgage application, we want to hear from you. Get in touch with us today to discuss how our lending approach can help get you a self-employed mortgage.