In the year 2020, mortgage rates have steadily declined and have reached an all-time low. The ongoing pandemic has also pushed home buyers to begin house hunting for many reasons – either downsize or upsize depending upon their current living situation. It could be overwhelming for many Canadians to climb up the property ladder, especially in a seller’s market. As per 2018’s StatCan report, self-employed workers accounted for 15% of total employment, up from 12% four decades earlier. The millenials have been taking the self-employment route, unlike the earlier generations who probably retired with a job they kept for most of their lives.
While as a self-employed professional, you may have the same access to mortgage products as your 9-5 counterparts. However, getting a mortgage when you’re self-employed is different than if you had a regular salary because:
- Variable income
- Proof of income
Numerous self-employed workers have been affected by Covid-19. Many of them have suffered as their clients could be in the same situation and terminated their services/orders. It has resulted in sudden drops in this hardworking population’s earnings and makes it more challenging for the lenders to qualify you for the mortgage.
As an independently owned and operated business, we here at Dominion Lending Centres NasaKasa understand the challenges and obstacles of a self-employed professional. We have the expertise of working with these individuals who may experience financial fragility and vulnerability. We value entrepreneurs for turning their passion into a profession, and we believe that they should have equal opportunity to be proud homeowners.
It could be difficult and stressful to get qualified with conventional lenders who may require you to submit documentation detailing your income, net worth, credit score and much more. We work with private/alternative lenders who are concerned with debt-to-income calculations. In exchange for a higher interest rate and other fees, private lenders are more likely to lend to a self-employed individual even if their income and credit score aren’t high.
In the heart of COVID-19, you may require to provide some additional proof or documentation to demonstrate your income and profits to potential lenders. Lenders are being extra cautious about determining if you could qualify for the mortgage and afford to repay it. The last year has been challenging during these profoundly unstable times and irregular income.
Dominion Lending Centres NasaKasa
If you are planning to buy in 2021, we can help you prepare after understanding your situation and borrowing requirements. We have access to lenders who deal specifically in self-employed mortgages to help you qualify for your dream home. If you need assistance in case you have been affected by COVID-19, we can offer expert advice to improve your eligibility and choose from the best lenders.
If you are a freelancer, independent contractor, business owner and sole proprietor, we can help you get started with your mortgage application. You can get in touch with a mortgage professional at Dominion Lending Centres NasaKasa who will work with you to get the mortgage you require.
You can reach us at 905.997.7001 or email us at email@example.com to begin your home buying journey.