How CML Canadian Mortgage Lender Help Self-Employed Individuals Obtain A Mortgage
As a self-employed individual, you may have reached a level of financial freedom. However, most mortgage lenders on mortgage insurers consider lending to a self-employed individual a significant risk. While several mortgage professionals offer self-employed mortgage products to attract more customers, there is no such thing as a ‘self-employed mortgage.’
A self-employed individual has to apply for the same mortgage product as a salaried individual, with the only difference being that a self-employed individual has to jump through more hoops to prove their income than someone who is on a company payroll.
Keep reading to learn about how we help self-employed individuals obtain a mortgage.
The Challenge: Qualifying for a mortgage as a self-employed individual.
In the mortgage industry, qualifying for financing under the strict lending guidelines has become increasingly harder for self-employed individuals as they are outside of salaried employment.
When applying for a mortgage, self-employed individuals qualify for less as per the guidelines of the Federal Chartered Bank. Moreover, applicants have to provide supporting documentation, including tax returns, bank statements, proof of business, profit/loss statements, and accountant prepared financials.
All too often, we successfully get the lender to approve the mortgage application, but the mortgage insurer turns it down. We then need to create innovative solutions to ensure that our clients can fulfill their dreams.
The Solution: Presenting an application with income reasonability and organized supporting documentation.
At times when a self-employed individual’s application is turned down, or they want to do it right the first time, we set out to educate the client on exactly what is required while keeping ourselves and the client informed on lender and insurer policy requirements. We research every possible option with multiple lender programs to find the best fit for the deal.
We also help you prove your income to any mortgage lender you apply to by attaching organized supporting documentation.
The documents include:
a. Income tax returns and notices of assessment for the previous two to three years.
b. Notices of Assessment from the Canada Revenue Agency to confirm you have no tax liability as keeping up your tax payments shows your reliability.
c. A copy of your business license or articles of incorporation showing you’re licensed.
d. Financial statements for your business, including your income and expenses.
e. Proof that you are the principal owner in the business.
With the above documentation, we will present your application and show you in the best possible light to ensure that your application is accepted.
We also have access to Business for Self programs which allow self
employed individuals to provide fewer income verification documents if they
have a down payment of 10% or greater.
The Bottom Line
As leading mortgage professionals in Regina, SK, CML Canadian Mortgage Lender offers a wide range of mortgage services, including mortgages for first time home buyers, new to Canada mortgages, Home Equity Line of Credit, refinance, business for self, reverse mortgages and a lot more.
We work with clients across Regina, Emerald Park, Pilot Butte, Balgonie, Lumsden, Regina Beach, White City, Moose Jaw, Milestone, Sedley, and Vibank, Saskatchewan.