5 Mistakes You Can’t Afford to Make with Mortgages for the Self Employed

Let’s face it: it’s hard to get a mortgage for the self employed. You’re a credit risk, your job may be a little flighty and if you can find a lender willing to work with you, you might end up with high interest rates and psychotic loan officers. Here we’re going to go over some of the best things you can do to make sure you’re making the most of your next mortgage. It all starts with your application and understanding where you stand financially. Working within your means and working on your credit always helps, but there’s more so let’s get started.

Can You Really Afford that Dream Home?

The first thing you need to ask yourself is can you really afford your dream home? Everyone wants the dream! And while it doesn’t cost anything to dream, it can cost you big if you get the wrong mortgage. Understanding where you are financially, what you can honestly afford, and how much you’ll be able to qualify for will help you avoid a money pit.

What’s Your Credit Look Like?

If you don’t know what your credit score looks like, there’s no better time than the present. You can order a free credit report from the government, one of the many credit bureaus, or you can find one online.

But you don’t just want your credit report; the credit report is useless without a credit score. Each bureau is going to report your credit score a little differently. That’s why you’re going to want to get a sampling of 2 to 3 credit reports to understand where you are financially. The lenders are going to look at what your credit report looks like – you can’t go into this blind. You need to know where you stand.

Get Preapproved

When looking for mortgages for the self-employed, you’ll need to get preapproved first. A lot of people think that they can just walk into a bank after they found the house; sadly, it’s not that easy. If you can find out how much you can get from the bank before you even start looking for houses, you will be able to avoid a lot of heartbreak. Being prepared when you’re shopping for a home is one of the smartest things you can do. Mortgages for the self-employed are geared towards people like you, but they can still have some stringent terms. Get preapproved before you start shopping.

Talk to Different Canada Mortgage Brokers

Many people start working with the first mortgage broker that comes along – this is a huge mistake. A mortgage broker is like a plumber, contractor, or a bank; you need to know that they’re going to do their best to help you. You’ll want references, quotes, and everything else in writing. You need to know that you have options, so don’t just settle on the first Canada mortgage broker that comes along.

Mortgages for the self-employed great when you need financing, just know what you’re getting into before you commit to any one lender.

What Are the Requirements for Mortgages for the Self Employed

self employed mortgagesSome offer them, but what are the requirements formortgages for the self employed? The first thing you need to do is to get a Toronto mortgage broker! We’ll be able to help you figure out all of the paperwork you’ll need to prove your income and employment. We’ll also be able to help you find the best mortgage lender for you, whether they’re a private mortgage broker or it’s a second mortgage! Here we’re going to talk about everything you need for a self employed mortgage, so let’s get started!

You’ll Need a Down Payment

Just like any other mortgage, you’re going to need a down payment. How much will really depend on the lender that you get to finance your mortgage. Some mortgages will ask you to have 20% down, but this can change; some will actually loan you up to 95% of the house, but no matter what you’re going to need a down payment upfront. Try to save up 5% to 10% of your purchase price so you can have that down payment available. You’ll have to show proof of finances; talk with our Toronto mortgage brokers to make sure that you have the right documentation.

You’ll Need to Prove Your Income

Proving you have a steady income is never easy when you’re self employed, but we’ll help you figure out this part. You’ll be able to show the lender that you have a steady stream of income and you’ll be able to pay off your debts on time, every time. While lenders love people who get a little behind (they can hike up your interest rates), they have to know that you’ll be able to pay off your mortgage. Work with one of our Toronto mortgage brokers to make sure that you have what you need to show your income.

You’ll Need to Have a Good Credit History

If you have bad credit, this is okay! You will want to take a break from trying to find a good lender to just stop and start working on your credit. We as Toronto mortgage brokers can help you with debt consolidation and other credit repair solutions; don’t let bad credit get in the way of getting a really great loan. Mortgages for the self employed are formulated for people who lead a different kind of life than people who have the daily grind. We’ll help you figure out how much you need to do to get your credit back on track and what you can do to get the best mortgage for your situation.

Business and personal credit histories will be scrutinized, so you may need to provide both of these to get approved for the mortgage. The good thing about using a Toronto mortgage broker is that you’ll be able to explore a wide variety of lenders who loan to different borrowers. You’ll be able to find one that’s a great fit for you. Visit our mortgages for the self employed page today to learn more about how we can help you: http://www.homebasemortgages.ca/home-mortgages/self-employed/

Why do solo home buyers pay more?

If you’re looking for mortgages for the self-employed and you’re buying home on your own, you’ll have a serious fight on your hands. It’s hard enough qualifying for mortgage when you’re self-employed, but when you’re the only home buyer things get complicated. Here were going to talk about what these mortgages can do for you, how to know if you qualify, and how to make sure you can get through the approval process with your dignity intact. After all, you should be able to make your money go to work for you, not the other way around!

Are you a solo home buyer?

If you’re a solo home buyer, you’re not alone; nearly 20% of Canadians bought a home in the last two years without a co-applicant (friend, family member or partner) – but it’s not going to be easy. From understanding where you are with mortgages for the self employed to making sure that you really can buy that new home, you’re going to have some tough choices ahead. If you really want to be able to buy the home you’ve always wanted, you’re going to want to think about all the wonderful things you can do to show a lender that you really are credit worthy.

How much can you afford?

When you work with one of our Toronto mortgage brokers, you’ll have help to figure out how much you can really afford. We’ll be gentle, but we’ll also help you really understand the reality of your unique situation. There’s no point in you spending more than you can afford only to lose it all later, so we’ll work with you to make the most of your chances. After you know how much you can afford, you’ll need to determine whether or not you’re self employed.

Are you self-employed?

If you have clients and contracts, if you work seasonally or even if you’re retired and living off an annuity, you may qualify as a self employed person for the purposes of a mortgage for the self employed. This is going to vary from lender to lender, but we’ll be able to help you understand as Canada mortgage brokers how you can show lenders your income and how much you have saved up. A little preparation goes a long way towards ensuring that you’re really going to get the most out of your mortgage application.

Are you ready to buy a home?

Once you understand your employment status and how much you can afford, it’s time to figure out if you really are ready to buy that home. Sometimes you are, sometimes you’re not – but either way you’ll need to know before you submit your first mortgage application. These usually cost about $15 to apply per lender, so you can apply to multiple lenders to discover who will give you the best deal. When you work with us as your Toronto mortgage broker we’ll work hard to help you find the best lender and the best rate for your needs.

Contact us today and see what we can do for you.

What kind of mortgage do you really need?

Let’s face it, when it comes to mortgages you have more options than you ever have before. When you’re self-employed, a lot of these options get taken out. Here were going to talk about mortgages for the self-employed, how to figure out which ones right for you, and how to make sure that you’re not paying more than you have to. Just because you’re self-employed doesn’t mean you have to get a bad deal! Working with one of our Toronto mortgage brokers, you’ll be able to see big savings over what you’ve probably been offered already. Let’s get started!

What is a conventional mortgage?

A conventional mortgage is your usual bank loan. You’ll get it from a traditional lender, you’ll have to deal mostly with customer support from overseas and with so many cases, things could go wrong. It’s harder to get this kind of mortgage if you’ve ever had trouble with your credit, paying your bills or with finances in general, you may not be a good fit. This will vary from lender to lender, but many will run along these guidelines:

  • 30-38% Debt to Credit Ratio (your debts can’t exceed 30-38% of your available credit)
  • 30-38% Debt to Income Ratio (your monthly debt payments can’t exceed 30-38% of your monthly income)

You’ll of course have to be able to prove that you can repay with proof of employment, income, assets, etc.

What’s a private mortgage?

A private mortgage is a lot like a conventional mortgage, but instead of getting your bank to give you the loan you’ll get it from a private lender. These are usually more receptive to people looking for mortgages for the self employed; but you’ll still need to be able to show that you have an income to repay your mortgage. Working with one of our Toronto mortgage brokers will help you know if this is the right way for you to go.

Who offers mortgages for the self-employed?

Every lender basically has this available, but you’ll want to make sure they’re friendly to you kind of borrowing. This isn’t always easy to do, and that’s why you should work with us. We’ll help you take an honest and objective look at your chances.

Do you have to get a mortgage for the self-employed?

Just because you’re self employed doesn’t mean you have to go this route. You’ll want to first look at your credit report and talk to one of our brokers. We’ll help you look over your finances, tell you about the benefits of these and if this is right for you. Everyone is different, so you’re going to need to really talk with us first – we’ll help you get a deal that fits your budget and your needs. Just because you’re self employed doesn’t mean you should end up with a bad deal, so don’t! Give us a call today and see what we can do for you.

How Do the Self-Employed Get Mortgages?

Being self-employed is just awesome; you get to set your own hours, you can hire and fire clients, you control the means of production – It’s a great life to live. But when you want to buy a home, you start looking at mortgages for the self-employed. What makes these different than any other kind of mortgage though? Will your interest rates be different, the same, insane?

Many lenders are going to be wary of lending you money, but in the end, you can find a lender who will give you the loan. When you work with us as your Canada mortgage broker, you get all the help you need to find the financing to buy the home of your dreams.

You’ll Need to Be Able to Prove Your Income

The first thing you’re going to need to know is that you have to go to prove your income – this could mean shoe boxes filled with bank statements, up to 3 to 5 years of tax returns, and other paperwork to support that you have the income to get this mortgage.

When you work with us as your Toronto mortgage broker, will help you figure out what paperwork, forms, and other documentation will help prove the lenders that sure where you need to be to get a mortgage. But the fun doesn’t stop there, let’s find out what else you need.

You’ll Need to Have Great Credit

In some cases, your credit will have to be at 720 or more to qualify for mortgages for the self-employed. If you don’t have a high credit score, you just may want to consider having a co-signer or co-applicant on your application. That way you can pump up your credit score, have more income, and qualify for even more money if you need it.

You May Need a Higher Down Payment

In some cases, self-employed individuals will need 30% or more down to buy home. This can be as substantial stumbling block to homeownership – most people, much less the self-employed – have that kind of capital laying around. When you work with us as your Canada mortgage broker, we’ll help you find mortgage lenders who are amenable to your current situation. The last thing you want to worry about, or anyone wants to worry about, is having 30-50% down just to buy a house!

Make the Process a Snap, Work with Us!

If you really want to buy a house, but you need to find mortgages for the self-employed, you need to work with us! We know how hard it is to be self-employed and proving your finances to lender; let us help you get started. We can help you figure out what documents you need, forms you have to fill out, and everything else that can make getting mortgages for the self-employed so easy.

Why do all that hard work yourself when we can help? Visit our mortgages for the self employed page today – see how you can save!

Saving Money on Mortgages for the Self Employed

self employed mortgagesWhen you’re trying to get a mortgage for the self employed, you’re always going to be on the lookout for savings, but what can you do? Most people don’t have the negotiating power they need on their own, and that’s where we come in. When you work with us you get all the help you need to get the mortgage that’s right for you. Working with us as your Canada mortgage broker not only helps you save money now, you’ll be able to see big savings later too. Here we’re going to go over everything you need to know to save big, so let’s get started.

What’s Different?

When you’re looking at mortgages for the self-employed you might ask yourself what’s so different? After all, you’ll have interest pay, monthly payments to make, and a mortgage on your house – it can’t be all that different can it. Virtually everything’s the same, except that the criteria are skewed towards your lending needs. People who’re self-employed may not have a monthly paycheck, they may have a harder time proving their income, maybe they don’t have established credit. Whatever it is you’re going to need to make sure that you’re choosing the right one for you.

With mortgages for the self employed you’ll be able to make sure that you’re working with lenders that understand your situation. You won’t have to worry about being turned down just because you have a different kind of income situation. You will want to work with one of our Toronto mortgage brokers though, because there’s a lot of paperwork you’re going to need to fill out.

Why do Lenders Avoid Self-Employeds?

Many lenders don’t want to work with people who’re self-employed; they have their reasons, but mainly boils down to economics. They need to make sure whoever they lend money to has the money to pay it back – and with mortgages for the self-employed you never know if you’re going to still have a job. Since more and more Canadians are taking this kind of approach to work though, more and more lenders are more amenable to mortgages for the self employed.

If you want to make sure you get approved for mortgage, you need to make sure that you’re getting the one that’s right for you. Working with one of our Canada mortgage brokers you’ll be able to figure out if you can qualify for conventional mortgage or if you need to get more outside the box financing.

How Can You Save?

You’ll want to be able to save on your monthly mortgage payment, get a low interest rate, and favorable loan terms – the last thing you want to be is penalized for paying off your mortgage early right? When you work with us, we’ll make sure this doesn’t happen to you. Being self-employed is hard enough you shouldn’t have to worry about being able to get mortgages for the self-employed. If you’d like to learn more, visit our self employed mortgages page today!

Getting a Mortgage When You’re Self Employed

mortgage for the self employedWhen you’re looking for mortgages for the self employed, you might find out that getting financed isn’t the only problem you’re facing. From self employment taxes that can run really high (as well as your risk for an audit), figuring out estimated taxes and all the paperwork that can go with it – it’s not easy being self employed. With so much to worry about, why worry about your next mortgage? When you work with us as your Toronto mortgage broker, you’ll get all the help you need to get a mortgage that’s right for you.

Have Your Taxes Ready

To get a mortgage for the self employed, you’re going to need to show the last two years (in some cases three) years of taxes. This will establish how much income you’ve had over the past few years and will be an indicator to the lender of whether or not you’re credit worthy.

While most people with a “standard job” would only have to show a year of taxes and probably some pay stubs, you’re going to have to go the extra mile. But that’s okay! You have a life that’s your own and sometimes that makes things a little more difficult. Don’t get tripped up in stuff that doesn’t matter, you’re going to be able to get the mortgage that’s right for you.

Self Employment Always Carries Risks

You’ll end up paying a little extra, no matter how great your credit is; self employment is always a gamble and lenders need to hedge their bets. If they’re going to lend you the money, they have to know that they’ll be able to get the money back somehow.

You may have to pay private mortgage insurance, you might have to have a larger down payment. Whatever you do, work with us to make sure that you’re getting the best mortgage for the self employment.

Do Many Lenders Offer Mortgages for the Self Employed?

Most do, but we can always help you find the one that’s right for you! Some lenders offer specific types of mortgages just for unemployed people, others will just charge extra interest while some won’t offer anything at all than their standard mortgages. It really varies from lender to lender and you’ll want to do your research. When you work with us you get a Toronto mortgage broker that’s dedicated to making sure that you’re getting the best possible mortgage for you – not for the lender.

Figuring out all the paperwork you’ll need, if you even fall under being self employed and a whole host of other issues can make getting a mortgage for the self employed more difficult than it needs to be. That’s why you should work with us, some of the best Toronto mortgage brokers you’ll find around. Why leave your financial future in uncertain hands, when you can work with us and get the mortgage that’s right for you? Call today and see what options are available to you, don’t pay more than you have to.

Is it Hard to Get a Mortgage for the Self Employed?

mortgages for the self employedGetting a mortgage for the self employed is actually a lot easier than you’d think it would be! The first thing you’re going to want to think about is how you’re going to prove that you have an income; the best step you can take is to hire a Toronto mortgage broker (or a mortgage broker in your area). They’ll help you figure out how you can document your employment and your income and get the financing you need to buy a home or refinance your current one. Let’s get started.

What is Self Employed Mean?

There are many different types of employment, but if you work as an independent agent or contractor, you’re most likely self employed. If you have your own business you will also be considered self employed, so don’t feel bad if you’ve been rejected out of hand for having this kind of employment. Just because you don’t know what you need to prove you have a legitimate income doesn’t mean you can’t get a mortgage. You’ll want a mortgage broker to make sure that you understand what’s involved before you fill out the mortgage paperwork.

Is a Self Employed Mortgage Different?

Other than your employment, this type of mortgage isn’t any different than any other kind offered on the market. If you are retired, own your own business or hold a flex job this is the kind of mortgage you want to try and get. Your mortgage broker will help you figure out if you need to have anything special with you when you fill out the mortgage application; they’ll also help make sure that you fill out the paperwork as perfectly as possible. Getting the best terms for your loan means filling out the paperwork as perfectly as possible the first time around… make sure you get it done and you’ll get the right mortgage.

What do Mortgage Brokers Do?

Mortgage brokers are the stepping stone between you and the perfect financing. You’ll want someone who understands your situation, someone who knows how to get mortgages for the self employed.  They’ll take your mortgage application and check it over. They may also go through your credit report and talk to you about where your FICO score needs to be to get a good mortgage. After all this, they’ll take your application to many different lenders and see who will give you the best loan.

Just because you’re self employed doesn’t mean you can’t get a great mortgage. It may be difficult to prove your income at first, but with the right mortgage broker you’ll be able to save time and money. There are many lenders who will help you with financing, but you’re going to want to make sure you get the right mortgage lender. Sometimes you’ll have to go an alternative route to financing; sometimes a conventional lender will have the better deal available. Research your options well and good luck!

Contact us today and see what we can do for you.

How do Mortgages for the Self Employed Work?

mortgages for the self employedIf you’re self employed or retired and you need a mortgage, keep reading! Here we’re going to talk about mortgages for the self employed; from how they work to what the benefits are. Mortgages can be difficult to get, even when you have traditional employment and fall within the moral credit range. You’ll want a mortgage broker to make sure that you’re getting the right mortgage for your situation. No financing option is “one size fits all”, so make sure that your mortgage fits you. Let’s get started!

When a Conventional Mortgage Won’t Do

When a conventional mortgage doesn’t fit your situation, it’s time to think about alternative financing. Maybe you have a flex job or you’re self employed and have a hard time proving that you have income (this is increasingly common, so don’t worry!), and you’ve been turned down for financing before. Maybe you’re retired and you want to buy a home, but you just don’t know how to present your case to mortgage lenders. When conventional mortgages don’t fit your situation, you need to consider mortgages for the self employed. This is when it’s time to talk to a Toronto mortgage broker.

How are Mortgages for the Self Employed Different?

Mortgages for the self employed work just like normal mortgages, but they take into consideration that you may have a hard to prove income, and that they won’t be able to verify your employment situation as easily as someone with a traditional job. The mortgage lender will go through virtually the same process otherwise, and your mortgage will be virtually indistinguishable from any other type of mortgage.

Let Us Help You

Let us help you! When you deal directly with a mortgage lender, you run the risk of getting the wrong mortgage or paying too much. Buying a mortgage is like buying insurance; you don’t want to do it yourself and you need an intermediary. You’ll have to fill out a mortgage application like you would with any type of mortgage (we’ll help make sure everything is correct) and then we’ll take it from there.

While most mortgage lenders will go over everything in every detail, keeping you off balance so you’re not sure what you’re doing, we’ll make sure you get the right mortgage for you. Just because you’re self employed doesn’t mean you shouldn’t be able to get the financing you need to buy a home! These types of mortgages can be hard to find on your own; many who grant them are private mortgage lenders who don’t advertise (they prefer to work with brokers for example).

Is a Canadian Self Employment Mortgage Right for You?

You’ll need to examine all of your options before you choose a specific type of mortgage. Sometimes you’ll be able to qualify for a conventional mortgage from a bank, sometimes you will need to go the alternate route for financing. Let us as Toronto mortgage brokers help you find the right solution to your needs! 

To learn more about our great rates for mortgages for the self employed visit: http://www.homebasemortgages.ca/home-mortgages/self-employed/

How to Get a Mortgage with No Credit

Most of us end up getting credit while we’re young and keeping it, at least until we have to buy a home. Maybe you had a starter credit card, maybe you had student loans that you had to repay. Maybe you had If you have no credit but want to buy real estate, you’re going to have to get creative. No credit and bad credit are two very different things – if you don’t have the best credit you’ll want to work on credit repair. It’s not going to be easy but you can do it if you plan ahead.

Identify Alternative Sources of Credit

If you don’t have a credit card, don’t want one, that’s fine – but you’re going to need to identify your alternative sources of credit to use as a trade line. You’re going to have to look more at private mortgages than you would conventional mortgages; these will usually be a bit more flexible and you might even be able to get a better rate. Alternative sources of credit are easy to spot though:

Utility Bills – Pay your power, mobile and cable bill on time each month? You can use these as an alternative form of credit in place of credit cards, car loans or even student loans. It’s important to talk with the billing department of each to see if they can give you a recommendation.

Rent Payments – Have you been an awesome tenant? You might be surprised at how much stock different lenders will put into someone being a good renter. If you’ve been paying 2 months ahead in the same apartment for 5 years, that’s really going to tell a lender something about the kind of borrower you might be.

What is a trade line?

Lenders will tell you that they can use the above things as a “trade line” or something to show that you’re credit worthy. If you don’t pay any of your own bills, you’ve never rented a home and you’ve just had a hard time in general with stuff period, you may not be able to present something as a trade line to get a mortgage. Government loans are also available, depending on if you qualify and your mortgage needs. Sometimes it boils down to talking to lenders face to face and seeing what you can shake loose.

You May Pay More in Interest

Even if you opt to work with mortgage brokers or with a government loan, you may have to pay a premium for being a borrower without an established credit history. If this is how things shake out for you, you may end up paying anywhere from .5% interest up to 2% extra interest premium on top of the rate you would have received if you’d been deemed “credit worthy”. You’ll want to be very careful about what lenders you choose to do business with, shop around and find the one that will offer you the lowest rate.