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Mortgage Solutions for every Self-Employed in Canada

Mortgage Solutions for every Self-Employed in Canada

Are you self-employed and looking for a mortgage? With mortgage regulations being more stringent at banks in the recent years we, it has become difficult to have a mortgage be approved especially for the self-employed.

STANDARD MORTAGE
With an adequate amount of income, you can avail a borrowing up to 95% of the value of your home with default insurance. Even without a default insurance, you can avail a loan up to 80% of the value of your home.

SELF-EMPLOYED MORGAGE
Having qualified to access additional business income and with a good credit, RBC provides 80% of the property value in case you are refinancing. In case you are planning to buy, RBC can avail you a borrowing worth 90% of the property value.

HOMELINE PLAN
In case you have unrelated borrowing requirements and need a flexible credit access, you can go for merging the RBC Royal Bank Mortgage and Royal Credit Line under a single plan.

STRATEGIES TO SHOW ADEQUATE INCOME WHEN YOU ARE SELF-EMPLOYED

-Stating your income is a cumbersome approach but effective to show sufficient income while applying for a mortgage. Here they calculate your income on the basis of a person’s income with similar status in your previous profession. Provided you worked in the same job for two years before being self-employed.

-The easiest way would be to write off fewer expenses in the previous two years of the application. It might lead to some extra tax bearing, but it would comparatively save much more in your mortgage premiums

-Hiring a certified accountant who has enough experience to understand tax implications can make a huge difference in your mortgage plan. Make sure to open every detail to avail a better service.

-Avoiding any extended holiday in the previous years can help enjoy your years after the purchasing

-Offering a down payment more than 20% gives the lender much flexibility thus giving you an upper-hand to negotiate your rates.

WHY GO FOR A MORTGAGE BROKER
Employing a Mortgage Broker does just facilitate the whole Mortgage process but also help you cover all subjects mentioned above. Mortgage Brokers with expertise in Self-Employed Mortgages have access to various lenders and multiple Mortgage plans. They have enough knowledge and understanding to provide you the best deals suiting your situation. Without a good Mortgage Broker, you will always end up paying higher premiums with lesser efficiency.

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