Mortgage rules may be tighter for the self-employed, but options remain
If you are self-employed, live in a rural area or don’t have the best credit, you may find it increasingly difficult to get a mortgage.
Real estate experts say if you are self-employed, traditional lenders like the big banks may still lend you the money – it may just come at a higher interest rate, require a bigger down payment and increased scrutiny.
A growing number of people are becoming, or already are self-employed. This presents a challenge to them, especially if they are living in a rural area, to obtain a mortgage.
Some of the challenges these individuals face while trying to obtain a mortgage is higher rates and a bigger down payment requirement.
Saving your income tax records from 10, 15 years ago will assist you tremendously when trying to get approved. Being self-employed, you might end up with a higer than usual rate, due to the risk involved for the lender. If you can be tax efficient, you might pay more for your mortgage but will save a lot more money on income tax.
Speaking with a mortgage broker who will have several relationships with various institutions will be able to help steer you toward the best mortgage for your particular situation.