If you are self-employed, you know the challenges in getting approved for a mortgage through most of the major banks. There are strict parameters the banks use to determine if you qualify for a mortgage. Unfortunately, many self-employed individuals do not qualify for mortgages as their earned income falls outside of the banks guidelines.
Although being self-employed and running your own business has many perks, getting approved for a loan or a mortgage is not one of them. The application process can be extremely stressful. I know that many entrepreneurs stress over going to their bank even for a mortgage renewal. What if they look at my finances and determine based on the new numbers they do not want to renew my mortgage? Even worse, what if they decide to lower my line of credit or credit cards as they feel I am more at risk.
When the renewal notice comes through from the bank, many self-employed individuals just accept the offered rate as they do not want to provide their financials. All the while knowing that they are likely paying a premium rate to stick with the status quo. Many are happy just to have the mortgage renewed.
I suggest that before you mortgage is due, call one of our mortgage specialists. They can give you the advice you need and get quotes from many lenders and likely get you a better rate than you are currently paying. We also have access to many lenders that understand the challenges of entrepreneurs and that not everything is going to show on a T4 like most banks would prefer. Maybe your reinvesting earnings into your company or taking money out as a dividend or similar.
In a worst case scenario, if the rate we offer is similar to your bank offer, at least you know you’re paying a competitive rate at your current banking institution. You owe it to yourself to check out all your options before you commit to a mortgage that may not be the best rate for you.
If your self-employed, call us and let us find you the best mortgage possible.