Own your own business? Learn how you can own a home too!
Statistics show that nearly 20% of all income earners in Canada are now self-employed. Today, lenders want proof of a stable income. Here are a few ways to ease the process and increase your chances of qualifying for a low mortgage rate.
Document Every Penny
You’ll need to document your income when preparing for a self-employed mortgage pre-approval. There are two basic ways do this – declared income and stated income. Declared income is provable via your personal income tax statements. Stated Income/Stated Asset (SISA) mortgages are made without any documentation or bank records to verify income levels.
Keep Your Credit in Check
When it comes to securing the best mortgage rate, a good credit history and solid credit score will always work in your favour.
Bump Up Your Bank Account
A big down payment and hefty bank account can help convince a lender that you’re less of a liability when it comes to credit.
Consider a Joint Mortgage
The best way to increase your chances of scoring the best mortgage rate is to take out a joint mortgage with someone who is employed full-time.
Talk to a Broker
Having a qualified Canadian mortgage rate broker on your side can make a huge difference for self-employed individuals.
Just because you’re self-employed doesn’t mean you need to give up your dream of becoming a homeowner. Contact FamilyLending.ca today to learn how you can start climbing the real estate ladder.