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5 Reasons To Work With a Mortgage Broker If You Are Self-Employed

couple at home after working with mortgage broker for self-employed

A mortgage broker can do a lot for self-employed borrowers. They can help them find the right mortgage product, get the best rates, and get approved for a mortgage despite their self-employment.

It may already be well-known that Canada is quite promising around granting mortgages, regardless of the kind we’re talking about. The loan application process is generally pretty straightforward and accessible to many of those trying to obtain a loan.

Whether buying a home for the first time or refinancing an existing mortgage, Canadians have a lot to look forward to in the current mortgage landscape. The fact that mortgage rates are still hovering near historical lows makes homeownership even more attainable for Canadian citizens and residents.

One thing to keep in mind, though, is that Canada’s real estate market is very active. In fact, it’s one of the most active real estate markets in the world right now, so be careful if you’re considering buying there. While mortgage interest rates are low, real estate prices have been going up quite quickly as well.

Self-Employed Individuals And The Mortgage Game

Generally speaking, when applying for a mortgage, you can expect a few factors to be weighed in. Among these, a steady income will largely be favoured when granting a mortgage since it shows the applicant is serious, committed, and able to make the monthly payments for the borrowed amount. 

Working as a contractor, freelancer, or consultant can be very rewarding. While it does come with its fair share of challenges, the self-employed life also offers many benefits. There’s more flexibility in your working hours and days, as well as the opportunity to set your own rates and prices. 

As great as self-employment can be, it also comes with drawbacks, such as maybe not having that regular paycheck, benefits, and a safety net if something happens.

When it comes to financing a home, financing without a safety net can be risky for both the borrower and the lender. You may have heard of people who were self-employed and had their homes go into foreclosure because of a health issue or something else happening. 

As a self-employed, you can choose a lender that is willing to offer non-traditional financing. You can also choose to put down a larger down payment to make the home more affordable. If you are applying for a mortgage and you are self-employed, you should have a solid plan for how you will pay the mortgage if the business starts to struggle. This is where a mortgage broker can help.

Thankfully, there are quite a few reasons why working with a mortgage broker for self-employed will help you reach your financial goals. Today, we’ll list the most notable ones: 

1. Mortgage Brokers Develop Unique Relationships With Lenders

In Canada, mortgage brokers will go above and beyond to develop a solid, trust-based relationship with the lenders they’re working with. They often have access to mortgage lenders who specialize in lending to self-employed individuals. Needless to say, this is something that the regular mortgage applicant can’t do effortlessly and in a short amount of time. 

These unique relationships enable mortgage brokers to shop around and negotiate the best terms and rates for their clients. By partnering with a reputable mortgage broker, self-employed individuals can benefit from their broker’s connections and expertise. 

2. Mortgage Brokers Can Tailor Your Mortgage Offer

Not all mortgages are alike and it takes a professional to know so. We’re talking about the type of loan, the term of the loan, the interest rate, and so on.

people working on a mortgage offer

When you work with a mortgage broker dedicated to finding solutions for the self-employed, they’ll take the time to understand your situation and goals and help you find a self-employed mortgage product that meets those needs. 

They’ll likely ask you a series of questions about your plans for the future, current assets, and anticipated expenses. With this information, they can then help you find a mortgage that is best for you.

3. Mortgage Brokers Can Streamline The Process

If you are self-employed, you may find that the process of getting a mortgage is much more complicated than it would be if you worked for someone else. It can be stressful and time-consuming and can take weeks or even months to complete. Additionally, there are lots of documents to fill out along the way.

By working with a mortgage broker, self-employed individuals can make sure that they do everything right from the start. Before you know it, you’ll have everything filled in, your down payment covered, and your mortgage payments rolling. 

4. Mortgage Brokers Are Experts At Finding Creative Solutions

If you’re looking to buy a house or need to refinance, your mortgage broker will work with you to find a creative solution to your situation. They’ll help you find the right loan for your situation, whether it’s a conventional, fixed-rate mortgage, an adjustable-rate mortgage, or a combination of these.

5. Mortgage Brokers Work With Both Traditional And Alternative Lenders

If you are self-employed, have a poor credit score, or want to explore non-traditional lending options such as grants, home equity loans, or peer-to-peer lending, a mortgage broker can help you find a lender that suits your needs. A good broker will shop around for you and provide you with multiple offers so you can find the best lender for your situation.

Conclusion

In the end, getting approved for a mortgage is something many people strive for in their lifetime. Whether it’s for the business they’re building, their home, education or personal expenses, a loan represents a much-needed amount of money that comes in at the right time to step up to the next level.

Regardless of what your qualifying income is, if you’re self-employed, you may be better off choosing to work with a mortgage broker who specializes in offering solutions for self-employed individuals. 

Here, at YourEquity.com, you can rest assured we’ll have your best interest at hand when applying for a mortgage loan as a self-employed. Together we’ll carefully look at your unique set of needs and capabilities to perfectly tailor the mortgage offer that’s useful and relevant to you, and you only.

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