Mortgage for Self-Employed
Mortgage Financing for Self-Employed Canadians
Securing a mortgage is often perceived as a complex process, particularly for self-employed individuals. Traditional lenders typically rely on income verification methods that don't always align with the unique financial situations of entrepreneurs, freelancers, contractors and commissioned sales people. Fortunately, alternative mortgage lending has emerged as a viable solution. If you are self-employed and have a minimum 20% down payment for a purchase or looking to refinance and have at least 20% equity in your current home, we may have a mortgage solution for you.
Understanding Self-Employed Mortgages:
Self-employed mortgages, also known as alternative or stated-income mortgages, cater specifically to individuals who have non-traditional income sources. These mortgages take into account a broader range of factors beyond conventional income verification methods, such as 2-Year tax returns or pay stubs. Instead, they consider the overall financial picture of self-employed applicants, including business income, 3 to 6 months bank statements, and credit history.
The Benefits of Self-Employed Mortgages:
1. Flexible Income Documentation:
Self-employed individuals often face challenges when it comes to proving their income stability. Traditional lenders typically require two years of steady income history, making it difficult for those in the early stages of their business or experiencing fluctuations in earnings. Alternative mortgage lenders consider the bigger financial picture, allowing self-employed borrowers to present a broader range of income documentation, such as business bank statements, financial statements, or contracts.
2. Improved Borrowing Capacity:
Since self-employed borrowers may write off certain business expenses to minimize taxable income, their declared income may not reflect their actual financial position. This discrepancy can limit their borrowing capacity with traditional lenders. Alternative mortgage lenders take a more holistic approach, considering the applicant's gross business income and cash flow, thereby potentially increasing the amount they can borrow.
3. Tailored Solutions for Credit Challenges:
Maintaining a high credit score can be challenging for some self-employed individuals, especially during the early stages of their business. Alternative mortgage lenders take a more nuanced approach to credit evaluation, considering factors beyond credit scores. They assess the borrower's overall financial health and ability to repay the loan, giving individuals with less-than-perfect credit an opportunity to access mortgage financing.
If you have any questions, we would love to hear from you. Contact us.
Why choose Mortgage Wars?
At Mortgage Wars, we understand the unique financial needs of Self-Employed Canadians. Our team of experienced mortgage brokers specializes in alternative lending solutions, specifically designed for self-employed Canadians looking for mortgage financing. We will work closely with you to assess your financial situation, explain the process in detail, and find the best mortgage product for your needs.
With our extensive network of alternative lenders, we can connect you with competitive interest rates and flexible terms tailored to self-employed individuals. We are committed to providing exceptional customer service, ensuring that you have all the information you need to make an informed decision.
Contact Us Today
If you are Self-Employed looking for mortgage financing options, Mortgage Wars is here to help. Contact us today to schedule a consultation and explore how a self-employed mortgage can give you the opportunity to own or refinance your home. Our friendly and knowledgeable team is ready to assist you every step. Call us at (416) 907-2090!