Self Employed Mortgage Options Improving
“Self Employed Mortgage Options On The Rise With Major Mortgage Lenders”
With the Canadian mortgage market gaining more and more stability, major lenders are starting to focus more once again on what we would refer to as the prime equity market.
This is a slice of the mortgage market where the self employed mortgage lives and provides financing to self employed individuals who may not be able to show their income or ability to service debt in the same manner as a employee or wage earner.
Even during the recent economic slow down and financial credit tightening, self employed mortgages have remained available, but the qualifying requirements were more stringent across the board as the major mortgage lenders moved away from prime and sub prime equity mortgage opportunities.
Because these are uninsured mortgage programs, the banks will always make sure there collective house is in order before taking on a higher risk lending opportunity such as more equity based lending.
And with the majority of Canadians now preferring variable interest rates, which provides greater profit margins for the banks and major financial institutions, there is now a greater desire to branch out further into the prime equity mortgage market even though there is greater financial risk associated with it.
This is great news for self employed individuals in general, but more specifically for those that were having a hard time qualifying for mortgage funding during the last two to three years.
More specifically, some main line lenders have already softened on income verification requirements including some no longer requiring a notice of assessment to prove income.
Another way in which qualifying criteria had been increased was through higher personal credit score requirements that have also come down with certain lenders, further increasing the ability for individuals to qualify under these prime equity programs.
Each program will have its own limitations with respect to lending amount and loan to value ratios, but all in all things are on the up swing for the self employed.
Because there are several different programs on the market, each with their own unique twist for this type of business, it can take some work to figure out which self employed mortgage offering is the best fit for your personal requirements.
The best approach to the self employed mortgage lending process is to work with an experienced mortgage broker who can quickly assess your situation and financing requirements, and get you working with
the most relevant mortgage financing options as soon as possible so no time is wasted or mistakes made trying to figure out the various mortgage offerings.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel