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
