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.