How does being Self-Employed affect my Mortgage?
Over 80% of my business in 2021 has been from self-employed clients. With the pandemic, many companies have switched their employees to WFH, or transitioned them from salary to commissioned, and some people have outright left their salaried positions to pursue entrepreneurship.
Being self-employed has many obvious benefits including the ability to write off expenses, pay less taxes, and determine your own schedule. But what does this mean from a lending perspective?
Many lenders will look to be more critical - where some questions may include things like…
How has your business been impacted by Covid?
How long have you been self-employed?
Did you take CERB?
Did you pause your mortgage payments when the banks offered “Covid relief”?
All relevant questions pertaining to mitigating risk which will ultimately affect whether a lender chooses to APPROVE or DECLINE. What they are looking for is COMFORTABILITY, getting the proper information from the client upfront and cultivating a well executed response will go a long way in obtaining an approval.
As is with all mortgage applications, PRESENTATION is key and working with a mortgage agent who has done hundreds of these types of applications is critical in obtaining an approval. I work with my clients well in advance to help develop a plan for all lending platforms of their choosing and it doesn’t stop there. I work with their Realtors, Lawyers, Accountants, and Financial Advisors to ensure proper execution to obtain approval. This isn’t transactional for me, it never has been.
If you are self-employed and are curious about any of the above or what you can be pre-approved for please don’t hesitate to reach out, I’m happy to help.
For additional information you can click the button below for a 5 minute video on “5 things to consider when you’re self employed.”
