Five Good Reasons to Use a Mortgage Broker for Self-Employed
For self-employed borrowers, a mortgage broker can be pretty helpful. Despite their self-employment, they may assist them in locating the ideal mortgage package, obtaining the best rates, and receiving mortgage approval.
Regardless of the mortgage, we’re talking about, Canada is recognized as promising in this area. The loan application process is typically quite simple and open to many people looking to get a loan.
The present mortgage landscape offers Canadians a lot to look forward to, whether they are refinancing an existing mortgage or purchasing a home for the first time. Homeownership is even more attainable for Canadian citizens and residents because mortgage rates still cling at historic lows.
One thing to keep in mind is that the Canadian 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 are rapidly rising.
Self-Employed People and the Mortgage Game
Generally, you can expect a few factors to be considered when applying for a mortgage. A consistent income will be heavily favoured when granting a mortgage because it demonstrates that 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 highly profitable. While the self-employed life does have its challenges, it also has many advantages. You have more control over your working hours and days and can set your own rates and prices.
As beneficial as self-employment can be, it does have drawbacks, such as not having a regular paycheck, benefits, or a safety net if something goes wrong. When it comes to home financing, without a safety net, both the borrower and the lender are at risk. You may have heard of self-employed people who had their homes foreclosed due to a health problem or something else.
One can select a lender willing to provide non-traditional financing as a self-employed person. You can also put down a larger deposit to make the home more affordable. If you are self-employed and applying for a mortgage, you should have a solid plan for how you will pay the mortgage if your business struggles. This is where a mortgage broker can come in handy.
Working with a mortgage broker for self-employed will help you achieve your financial goals for various reasons. Today, we’ll highlight the most notable:
1. Mortgage brokers cultivate unique relationships with lenders.
Mortgage brokers in Canada will go above and beyond to establish a solid, trust-based relationship with the lenders with whom they work. They frequently have access to mortgage lenders specializing in loans to self-employed people. Needless to say, this is not something that the average mortgage applicant can do quickly and easily.
Because of these unique relationships, mortgage brokers can shop for their clients’ best terms and rates. Self-employed individuals can benefit from their broker’s connections and expertise by partnering with a reputable mortgage broker.
2. Mortgage Broker Can Customize Your Loan Offer
Mortgages are not all the same, and only a professional can tell you that. We’re talking about the loan type, the loan term, the interest rate, etc. When you work with a mortgage broker dedicated to finding self-employed solutions, they will take the time to understand your situation and goals before assisting you in finding a self-employed mortgage product that meets those needs.
They will likely ask you questions about your future plans, current assets, and anticipated expenses. They can then use this information to help you find the best mortgage for you.
3. Mortgage Broker Can Help to Simplify the Process
If you are self-employed, you may find that obtaining a mortgage is much more complex than working for someone else. It can be stressful and time-consuming, taking weeks or even months to finish. There are also numerous documents to fill out along the way.
Self-employed individuals can ensure they do everything correctly by working with a mortgage broker. You’ll have everything filled out, your down payment covered, and your mortgage payments set up before you know it.
4. Mortgage broker are experts at creating innovative solutions.
If you want to buy a home or refinance, your mortgage broker will work with you to devise a creative solution. They will assist you in locating the best loan for your needs, whether a conventional, fixed-rate mortgage, an adjustable-rate mortgage, or a combination of the two.
5. Mortgage broker work with both traditional and non-traditional lenders.
A mortgage broker can help you find a lender if you are self-employed, have a low credit score, or want to explore non-traditional lending options such as grants, home equity loans, or peer-to-peer lending. A good broker will shop around for you and present you with multiple offers, allowing you to choose the best lender for your situation.
Conclusion
Finally, getting approved for a mortgage is something many people strive for throughout their lives. A loan represents a much-needed amount of money that comes in at the right time to step up to the next level, whether it’s for the business they’re building, home, education, or personal expenses.
Regardless of your qualifying income, if you’re self-employed, you might be better off working with a mortgage broker specializing in self-employed solutions. When applying for a mortgage loan as a self-employed person, you can be confident that Crown Funding will look out for your best interests. Together, we’ll carefully examine your unique set of needs and capabilities to perfectly tailor the mortgage offer that’s useful and relevant to you and you alone.