Did you know that as of 2018, self-employed people make up about 15 percent of Canada’s population, according to Canada’s Mortgage Housing Corp (CMHC)? Self-employed people may have more flexibility and financial opportunities and have a higher median net worth, according to Statistics Canada. Given these strengths and prevalence, you may think that obtaining a mortgage when self-employed would be a simple smooth process, but unfortunately this isn’t always the case.
Self-employed workers may have more difficulty obtaining a mortgage than people who are financially backed by an employer as bankers view them as a higher risk. Self-employed workers have had to show more years of experience and provide extra documentation compared to their counterparts. Yet, the good news is that as of the fall of 2018, decisions were reached by the CMHC that made it easier for a self-employed person to obtain a mortgage. These decisions especially impact those who have been self-employed for less than two years. According to CBC news those decisions are based on factors including:
- Acquisition of an established business
- Sufficient cash reserves
- Predictable earnings
- Previous training and education
Here at Centum Mortgage Store, Ltd., we can help you navigate the route of reaching an agreeable mortgage as a self-employed person. We have many years of experience working with people in all sorts of financial positions. We also have access to and good standing with multiple lenders, so we can shop around until we find the best lending situation for you. Being self-employed doesn’t need to prevent you from finding a fair deal when you have our team on your side. Give us a call today.