Getting a mortgage to buy a house in Calgary is challenging enough for people who have full time jobs and a decent credit history. Being accepted for a home mortgage can be even more daunting if you are self employed. Self employed people run their own businesses. This could be anything ranging from a small convenience store to working as a trades person, or operating a one person consulting business.
Everyone should have the opportunity to own their own home and obtain the mortgage financing they need to buy that dream home. The good news is that there are a lot of lenders out there that not only specialize in the self employed, but have some excellent material that focuses on the self employed to help you prepare for applying for your first mortgage.
Rather than doing a lot of the legwork yourself, you might find it much more advantageous to use the services of a mortgage broker. They can guide through the process and help you find the best lenders with the best deals to help achieve your dream of becoming a new homeowner. Even better, they will perform this service at no cost to your because they earn their commission from the lender, and only when the mortgage is approved.
The good news is that as the number of the self continues to grow, lenders have come to realize that the self employed have become a new and untapped niche market that requires specific services which are unique and recognize their circumstances. The availability of mortgages for the self employed has expanded considerably to make the process easier for people who want to get mortgages.
One of the biggest challenges that face the self employed, and one that you should keep in mind, is your ability to prove your income. Many self employed people do not receive the standard pay stub. This will be one of the areas you will have to very conscious about because lenders need to ascertain your annual income. Your books will have to be in tip top shape and you will need to keep track of all Revenue Canada tax statements for at least the past several years.
The length of time you have been working as a self employed person may have some bearing on how the lender views your ability to repay the mortgage. Clearly, the longer you have been successfully self employed, the better your standing with a mortgage lender.
The quality of your credit history can also be a vital factor in determining whether you will be approved for a mortgage and you should perform a credit check on yourself beforehand. If there are any errors in your credit history, you will want to get them cleared up beforehand.
The amount of your down payment on your home may also have a bearing on not only whether you might be approved for a mortgage but also on the terms of the mortgage the lender will consider giving you.
The good news is that since there are such a variety and number of lenders that exist, there is a good chance of you finding a lender that suits your particular circumstances, even if your credit history is a little spotty or you haven’t been self employed for a lengthy period of time.
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