It’s About to Get Easier for Entrepreneurs to Get a Mortgage – Matrix Mortgage Global
Matrix Mortgage Global – It’s About to Get Easier for Entrepreneurs to Get a Mortgage
If you have had trouble getting a mortgage in the past because you are self-employed, there is hope on the horizon. The Canada Mortgage and Housing Corporation (CMHC) has just announced measures it will be undertaking to make it easier for a self-employed person to get a mortgage.
Up until now, it has been challenging for self-employed people to get mortgages in Canada because when you run your own business, your income can fluctuate. It’s can therefore be difficult to prove your income – which is one of the main requirements of many lenders when applying for a mortgage.
But the self-employed make up about 15% of our population. So why should it be so hard for them to get into a home of their own? Well, it seems that the CMHC has now recognized that and is working for change.
The changes being unveiled by CMHC will give lenders more flexibility when considering loans for entrepreneurs who have been in business for under two years.
Beginning in October, lenders will be able to factor in things such as:
- Whether the mortgage applicant has acquired an already established business.
- Whether the applicant has sufficient cash reserves.
- How predictable their earnings are.
- What previous education or training they may have had.
Additionally, self-employed mortgage applicants will be able to choose from a broader range of documentation to help lenders determine their eligibility for a mortgage.
Allowable documents will include notice of assessment along with a T1 General tax form, and a Canada Revenue Agency proof of income statement with a T2125.
Those who have less than a 20% down payment will be required to purchase mortgage insurance.
Overall, this announcement could be great news for the Canadian economy as it means one less barrier for people who wish to start their own businesses.
While these reforms have been a long time coming to traditional lenders, alternative lenders have been looking at the bigger picture for self-employed individuals for many years and brokers like Matrix Mortgage Global have long been helping business owners achieve their goal of home ownership.
If you are self-employed and are looking to get approved for a mortgage, contact Matrix Mortgage Global today. We work with many lenders that specialize in working with entrepreneurs and we can help you get the mortgage that is right for you. Call us today at 1-800-429-0717.