Posted: 1 Mar '18

Dominion Mortgage Broker How A Mortgage Broker Can Help If You Are Self Employed

While being self-employed is the dream of many entrepreneurs, getting approved for a mortgage when you are a freelancer, independent contractor, or small business owner can be challenging. Unlike salaried employees, self-employed individuals require different documentation when proving their income to lenders.

The way a self-employed individual writes off expenses is better understood by some banks than others. Dominion mortgage brokers understand the difference between gross income and net income, and know which banks have better underwriting policies to help get you approved for a mortgage. Lenders use your net income to calculate your debt income ratio (how much of your income is used to pay debt). If this ratio is too high, there are different solutions that may work for you, such as expense add-backs or stated income products. This is where a Dominion Mortgage Broker comes in.

How a Dominion Mortgage Broker Can Help

A Dominion Mortgage Broker has access to a variety of lenders that may have less stringent borrowing rules — including banks, credit unions, insurance companies, and private lenders. Your Dominion Mortgage Broker will help you prepare the information you need to prove your income to these lenders to secure the best possible mortgage rate. Depending on the nature of your business, this information can include:

  • Tax assessments and tax returns
  • Bank statements
  • Proof of business registration or incorporation
  • Property tax statements

In many cases, a Dominion Mortgage Broker can help you secure a mortgage with a lower down payment and interest rate than you may be able to obtain on your own as a self-employed borrower.

Speak to a Dominion Mortgage Broker

If you're self-employed, you already understand the value of hiring a professional to get the job done. When you work with a Dominion Mortgage Broker, you can rest assured that your dream of home ownership is in expert hands. Contact us at our Edmonton office today for a free, no-obligation consultation.

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