02 Mar 2020 Private Mortgages
Self-Employed Mortgage Qualifications
According to Statistics Canada, in 2018 approximately 2.9 million Canadians were considered self-employed. Despite 15% of the Canadian workforce categorized as self-employed many still find obtaining a mortgage through one of Canada’s major banks a challenge due to uncompromising qualification requirements.
Canadian Banks Self-Employed Mortgage Qualifications
Canada’s major banks and ‘A’ lenders require personal income and tax statements when qualifying a self-employed borrower. For self-employed business owners demonstrating income can prove difficult as there’s often more financial advantage to maximizing expenses and minimizing income in order to benefit on taxes. Because of this many self-employed borrowers find it difficult to qualify with a major bank and instead turn to alternative lenders where mortgage qualification criteria are more lenient.
Beyond personal income and tax statements traditional lenders will also evaluate the following when issuing financing to a self-employed borrower:
Qualifying for a Self-Employed Mortgage Through Private Lenders
Obtaining a mortgage through private and alternative lenders has become increasingly more common for self-employed borrowers in recent years. Private mortgage lenders offer greater leniency in their qualification requirements compared to traditional lenders. Private lenders place less emphasis on personal income and tax statements when financing self-employed borrowers, making qualifying more accessible. Rather, private lenders place focus on the following when determining eligibility.
Apply for a Self-Employed Mortgage
Rateco specializes in mortgages for self-employed Canadians, working with various institutions from national banks to private lenders. Rateco ensures all borrowers are partnered with the appropriate financier for their personal needs and qualifications.
If you’re interested in learning more about your financing options as a self-employed Canadian contact Rateco today and speak with one of our mortgage experts!