Self-employed or on 100% commission: A Mississauga Mortgage Broker Can Help You Get the Best Mortgage Rates

Buying a home is an exciting time. Whether you are a first time home buyer, are moving up or down-sizing, buying an investment property or looking to refinance your home, getting a mortgage gives you the ability to search within your price range for the perfect property. However, if you are self-employed or on 100% commission, you may be finding it far more difficult to obtain mortgage financing compared to someone with a regular salaried income – unless you work with a Mississauga mortgage broker.

Statistics show that almost 20% of all Canadian income earners secure their primary source of income from either a personal business or from a job that pays based on commission. Even though this represents a substantial portion of the Canadian population, it remains clear that self-employed and 100% commission paid individuals have much more difficulty obtaining mortgage financing. Why is this and how can you get a mortgage if you are self-employed or on 100% commission?

Why is it so tough? Since most big banks provide mortgage approval based on your average monthly income, easily visible through past paystubs, those who run their own business or work on 100% commission know that the process is far more complex. Monthly income often varies from one month to the next, and a yearly income can often be hard to determine as far as how it differs from year to year. Another issue for big banks is that many self-employed business owners minus expenses in lieu of surplus income, which is something that banks often refuse to recognize, whereas a Mississauga mortgage broker may not.

When applying for a mortgage when self-employed or if you are working on 100% commission, lenders often want a great deal more income verification and information compared to those with traditional income sources. An outline of projected profits for the upcoming years is often considered far less guaranteed when compared to salary, regardless of how your business may have been performing over the last few years. Working on 100% commission poses the same problem, as even if your profit margins and sales have been strong, they are not necessarily guaranteed to stay that way.

So what can you do if you find yourself in this position? Working with a Mississauga mortgage broker rather than going through a big bank, often provides you with far more options if you are self-employed or on 100% commission and looking for mortgage approval. A Mississauga mortgage broker, one with access to a wide portfolio of lenders, can ensure that you are able to receive mortgage funding even if you are not a regular salaried employee. Working with both banks and private lenders, the right Mississauga mortgage broker will be able to obtain the best rates for your mortgage regardless of your employment situation.

If you are self-employed or on 100% commission and looking for a mortgage, find out how a Mississauga mortgage broker can help you by contacting Paul Mangion of The Mortgage Centre at 416-204-0156 or visit www.themortgagecentretoronto.com