Self-employed mortgage in Canada
Self-Employed Mortgage Made Easy!
Most financial institutions in Canada require stricter requirements to verify that a self-employed person can pay back a mortgage. Hence, applying for a self-employed mortgage in Canada can be a quite complicated task.
However, if you are looking for a mortgage loan and you are self-employed, you have come to the right place.
At Equity Avenue Mortgages, we specialize in managing, obtaining, and processing loans for self-employed in Canada. Unlike traditional banks, we make financing easily accessible. We have a track record of helping hundreds of entrepreneurs and freelancers to get funding for real estate.
What is a self-employed mortgage?
A Self-employed mortgage is a loan provided to those who are not under any employment contracts. For many self-employed Canadians, it is impossible to buy an apartment without a mortgage. Getting hundreds of thousands to make a single payment is a privilege reserved for very few. Fortunately, at Equity Avenue Mortgages, we offer quick and large self-employed mortgage loans.
Equity Avenue Mortgages is always here to help and guide you to have a good idea of how you can access deposit financing. Whether you have a question, you want to book an appointment or you simply want to discuss your option, you should contact us directly. Don’t miss out on an amazing opportunity, call us now!
Are you self-employed in Canada?
The class of self-employed persons constitutes over 20℅ of the Canadian population. Self-employed workers are those who don’t work for others. That is, they work independently developing some personal competence. A self-employed person masters a skill and provides a service.
In general, self-employed workers, also called independent workers, work at their own risk. If you’re a part of this category, you may already know how almost impossible it is to get a self-employed mortgage in Canada.
However, with our private mortgage lenders in Canada, your chance of accessing a self-employed mortgage loan in Canada is higher!
What is a self-employed mortgage?
A Self-employed mortgage is a loan provided to those who are not under any employment contracts. For many self-employed Canadians, it is impossible to buy an apartment without a mortgage. Getting hundreds of thousands to make a single payment is a privilege reserved for very few. Fortunately, at Equity Avenue Mortgages, we offer quick and large self-employed mortgage loans.
Undoubtedly, a self-employed person may have the same or greater purchasing power than a salaried employee. However, when it comes to obtaining a mortgage loan, banks consider being a self-employed person a high-risk profile.
The consideration is because of income instability in self-employment. With self-employment, you may generate enough income to cover all expenses in a month. Just in the following month, your income may be barely enough.
Therefore, it is quite difficult for self-employed people in Canada to meet the basic initial requirements for granting a mortgage. The requirements for the approval of a mortgage loan are higher for self-employed than for salaried workers.
For instance, the requested value for self-employed loans is higher than those under an employment contract. It’s also the same for the level of indebtedness and the interest rates. The required indebtedness level for self-employed is lower than and the interest rates are higher than that of salaried workers.
The main challenge with a self-employed mortgage is to demonstrate solvency without having a payroll. However, it doesn’t mean that the self-employed in Canada can’t access a mortgage to buy a home.
At Equity Avenue Mortgages, we don’t want your profession to impede making the dream of owning your own home come true. That is why we take care of creating strategies that allow us to successfully manage the processing of your mortgage as self-employed. So, you don’t have to bother yourself about anything!
Advantages of mortgage loans for self-employed people in Canada
We make having a home affordable
Your income as self-employed may not be able to handle the acquisition of an apartment or house in Canada. Some freelancers and entrepreneurs have incurred the biggest debt in their lives trying to purchase a home on their own. However, at Equity Avenue Mortgages, we provide painless and affordable mortgage loans to self-employed people in Canada. We allow you to spread your mortgage payments over the years.
Our mortgage lending is also worth acquiring for a short period. In this way, you will not only get rid of mortgage credit faster, but you also reduce the interest on the loan.
We offer attractive interest rates
Our mortgage loan rates are low. As a self-employed person, if you’ve yet to build up sufficient financial capital, you should opt for our mortgage. We have competitively low-interest rates. Take advantage of our attractive interest rates today and purchase your dream home in Canada.
We offer the best mortgage loan for self-employed people in Canada. Here are the benefits of our mortgage.
Our mortgage loans cover all real estate
We offer credit for different types of real estate in Canada – whether they are new or old. You can use our loan to purchase or renovate your apartment, home, office, commercial establishments, residential buildings, etc.
Our credit can also be used to build, repair, remodel, expand, improve, or mortgage a home to obtain cash. You can then use the cash to make a large or important expense.
Our mortgage loans cover all real estate
In the past, the process to apply for a mortgage loan was complicated. However, today, the use of virtual channels has greatly simplified the process. Therefore, you don’t have to visit us in person to find out what we offer and how to apply for our mortgage loans. Our web portal is user-friendly and makes the whole experience simple. Save expenses on another property and peace of mind
With our self-employed mortgage, you can live in the property while paying for it. In this way, you can enjoy the benefits of living in a stable apartment or house. So, you don’t have to spend on renting another property. It certainly offers peace of mind.
We accompany you in the search for your mortgage
We are by your side in the most important moments. Therefore, we accompany you in the search for your home. Our experts will provide you with information that may be of interest to you. We also offer you a complete range of fixed and variable rate mortgages. Contact our professionals to get advice about the self-employed mortgage option that best suits you.
Before you apply for a self-employed mortgage in Canada
The first step before you apply for a mortgage loan is to know the market! That is, finding out about the market situation. There’s a good time to buy when it comes to real rate You will have to think about the following points:
- Location: You will have to see where you want to live and in what area, the location influences the prices of the property.
- Price: Before starting, assess the situation you are in to see how much you can afford.
- Type of property: This is about the type of house you are looking for, the number of rooms, etc.
Documentation for a self-employed mortgage in Canada
Providing the latest payroll and the employment contract is impossible for a self-employed person. Hence, it is difficult to access financing from most banks and financial institutions in Canada. Most banks are reluctant to approve self-employed mortgages about 70% of the time because they consider it unsafe.
The fact is that if you’re self-employed, you’ll have to prove that you’re reliable and that you have a stable income. Hence, you’ll have to collect all the possible documentation that accredits you, such as:
The information about your business
You will have to provide all the documents you can about your company that show what your business is about and how it works.
Your business’s financial accounts
In addition to the information about your business, providing your accounting record is essential. It proves that your business is stable and solvent. Other documentation includes the last income tax return and working life report. As a self-employed person, the documentation will prove that you have.
1. A stable income
Even as a self-employed person, you have to prove that you have a stable income and that you won’t have problems paying the fees.
3. A good credit history
If you have other current loans, you will have fewer opportunities to obtain a self-employed mortgage, since your debt capacity will be lower. But, if you have outstanding debts, your chances of getting financing will be practically nil. If you have any outstanding debt, it is better to pay it off before applying for the loan.
2. A stable business
With the history and documentation of your business, you will have to demonstrate that it is stable and solvent.
4. Debt capacity
We recommend that if you’re self-employed, you shouldn’t allocate more than 45% of your average income to pay loans. So, proper documentation shows if you are eligible to pay debts.
Study our offer and negotiate
Once you have delivered the documentation, if you meet the requirements, we will make you an offer. Our professionals will ensure that you have a good understanding of the contract. If you have any questions, you can reach out to us anytime – especially if you want to negotiate the offer.
Sign the offer
Once you have negotiated and agreed to the contract, it is time to sign the mortgage before a notary public and the house will be yours!