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  • Mortgage Approval for the Self-Employed

    Author: Mitchell Weiser Date: June 1, 2016

    In the past, securing a mortgage as a self-employed person was a complicated and often unsuccessful pursuit. However, as the global economic landscape has shifted, the mortgage industry has followed suit by providing self-employed applicants with achievable lending criteria.

    Presently, there are several different ways to obtain mortgage financing for those who are self-employed.  While many lenders may still view self-employed people as a higher risk, the application and approval process has been redesigned to make mortgage financing more accessible for those who rely on self-declared income.

    With this new simplified approval process, designed specifically to meet the unique needs of entrepreneurs, potential borrowers now benefit from a range of mortgage products with built-in flexible options and far less paperwork.

    To receive an approval for a mortgage loan as a self-employed person, you must generally be able to provide at the minimum, the following supporting documentation:

    -Evidence of a strong credit history. When applying for a mortgage as a self-employed person, your lender will typically consider your personal credit history as opposed to your business credit history.

    -A business license or GST license or articles of incorporation.

    -A Statement of self-declared income

    If you are self-employed and anticipate the need for mortgage financing in the future, there are several ways to strengthen your position, some of these include:

    -Keeping your consumer debt at a minimum

    -Requesting and reviewing a copy of your credit report. Efforts should then be made to repair any delinquencies or other "red flags for creditors

    -Demonstrating financial stability. You could, for instance, offer a larger down-payment than normally required

    -Evidence of the availability of personal cash reserves

    -Demonstrate an established track record of successful self-employment

    -The willingness to provide any and all documentation requested of you.

    There are many programs and products which help entrepreneurs or other self-employed persons, who have a proven history of managing credit, but who may also have difficulty providing the traditional income verification that is required to buy a home or refinance an existing mortgage through CMHC and your financial institution.

    Please feel free to contact me to discuss your specific mortgage needs, Im always available to help.

    Mortgages Self-Employed Entrepreneur Mortgage Approval

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Author : Mitchell Weiser
Buying a home is one of the biggest investments most of us will ever make, and I'm here to help you make the most of this considerable investment. I look forward to working with you to assess your real estate financing options. Whether you'd like to buy your first home, renovate an existing property, or leverage the equity you've built, I'm here to discuss strategies and products available to you.
As a CIBC Mortgage Advisor, my job doesnt stop at helping you find the right financing solution for you. I can provide you with advice and information on living with your mortgage, such as pay down strategies that will help you become mortgage free sooner, or options for your next property purchase. If you have any questions along the way or down the road, I encourage you to contact me.
As a CIBC Mortgage Advisor, I work with you to discuss the facts, figures, and information needed to make informed financing decisions. Whether obtaining your first mortgage, transferring your mortgage to CIBC, or renewing your mortgage for another term, its important that you make decisions that you're comfortable with.
If youd like more information about mortgage financing solutions, please dont hesitate to contact me. Im here to help you create a plan that works for you.