Reviewing the recent labor force survey from Statistics Canada it is clear that the self-employed work force has been slowly increasing ever since 1976 to as recent as 2022. Statistics Canada considers in their survey this work force as “Own-account workers”. They are “defined as private-sector workers, who are self-employed, do not have employees and are either unincorporated or incorporated.
Self-employed individuals must go through a strenuous loan application process. Many times, the ‘A’ lenders such as banks decline their applications. Because they cannot provide a strong income stream in the form that the bank requires. This does not mean that they cannot afford to make their mortgage payments.
Individuals that are self-employed find it very helpful to work with a mortgage professional since Mortgage Brokers / Mortgage Agents have extensive training and knowledge focused on the real estate financing industry. Mortgage brokerages have access to funds from lenders other than the traditional big 6 banks in Canada. They work with many lenders who specialize in special case scenarios including working with self-employed individuals.
If you operate your own business and are considering purchasing real estate, we highly encourage you to contact Trusterra Mortgage as we are capable and ready to help you navigate through the complexities of the real estate financing application process.
Just because you are self-employed does not mean that by default you can not get approved for a mortgage. Let’s work together to prepare for and eventually to apply for a mortgage.