How to Get a Mortgage When You’re Self-Employed

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Mortgage approval may be difficult for anybody, but it is particularly tough if you are self-employed.

If you’re a self-employed person wanting to get a mortgage, there are methods to help you succeed with your application. Here are some pointers to assist self-employed people in obtaining mortgages.

Why Are Self-Employed Individuals Less Likely To Be Accepted For Mortgages?

If you’re self-employed, the mortgage procedure is rather different. You’ll be expected to submit more information, and qualifying may be difficult.

The first reason this procedure is so difficult is that your earnings are more complicated than salaried employees.

There is no primary income to verify the information, so self-employed borrowers must demonstrate that their firm exists and pays a consistent revenue.

If you’re a self-employed individual, you know how quickly your income can change; thus proving stability may be more difficult.

Plus, as a self-employed worker, mortgage lenders consider you to be a greater risk.

As a result, the criteria and application process may be more stringent than usual, and you’ll have to present evidence that you’re not a risk.

How To Boost Your Mortgage Application: A Step-By-Step Guide

Verify That Your Credit Is Adequate.

In general, mortgage lenders demand a credit score of 620 or higher.

Even though you might be able to obtain a loan with a score that low, you are unlikely to be accepted unless you can improve it significantly.

If you can’t document a consistent revenue, your best chance is to have a high credit score (of 700 or more).

Any self-employed borrower should make sure their credit reports are accurate and up to date on a regular basis.

You may use an app like Credit Karma to track your score without your credit being affected.

Provide All Of The Necessary Documents.

If you’re a self-employed person, you’ll need to make sure your paperwork is in order.

The self-employed have unique criteria to meet, so you’ll need to provide all of the necessary documents.

Look into each piece of documentation that is required and check for any omissions.

Make double sure you’ve met the demands, and triple-check everything.

Make A Larger Down Payment.

A down payment is an important consideration in whether your mortgage will be approved.

While a 5% down payment would be sufficient for typical salaried individuals, the self-employed individual will have to put down 20% to improve their chances of approval.

A larger down payment will cover any income uncertainties.

Keep A Reserve On Cash Stash Away Reserves

A large deposit and a substantial cash reserve are both beneficial.

Lenders will be more comfortable lending to you, if they know you can still make your mortgage payment on time in an emergency.

Mortgage Costs You More

Borrowers who are self-employed are considered to be a higher risk, so you’ll have a better chance of being accepted if you pay more for your mortgage.

You will be a more appealing applicant by doing so, at a slightly higher interest rate.

Furthermore, in the future, you may refinance with an excellent payment history at a reduced cost.

Reduce All Of Your Consumer Debts To Zero.

The fewer monthly payments you make throughout the mortgage application process, the more likely it is that you’ll be able to pay them.

You may qualify for a larger loan due to your strong cash flow if you pay off your automobile loans and credit cards.

Create A Self-Employment Track Record

If you have a track record of self-employment, lenders will be more willing to take a chance on you.

To keep track of your self-employment history, go back at least two years. If interest rates are low, you should apply for a mortgage right away, even if your self-employment track record isn’t as long.

A Simple Checklist To Assess Your Chances Of Being Approved

If you adhere to these pointers, you will be well on your way to having your mortgage application accepted:

  • Register your business and get it licensed.
  • Reduce your debt burden and tax deductions by putting money in an investment account.
  • Separate business and personal accounts
  • Keep accurate records and document everything.
  • Make a larger down payment.
  • Get in touch with a mortgage firm to assist you.

It’s Possible To Obtain A Mortgage If You’re Self-Employed

Even if you are self-employed, getting a mortgage is not impossible. It is feasible, but it may be tough.

If you take the additional effort to polish other aspects of your application, you will almost certainly be approved.

Choosing Mortgages

Contact us immediately if you’d like to learn more about how to qualify for a mortgage, even if you’re self-employed.

We have the necessary tools and knowledge so that you can fully grasp the mortgage and lending process, since the housing market in Ontario is complex.

We’ve established a knowledge base where anybody may get information about mortgage alternatives.

Our self-employed Site will be your guide and help you submit a mortgage application as a self-employed individual.

For more information about the mortgage application process in general, be sure to get in touch with Us today. Give us a call at (514) 701-6171 or Book Your Free 15 Minute Call with Us, It Will Help You Better Prepare for This Big Decision!

Our guide will help you understand what you need to know before buying your first house, how much money do you need in order to buy one, where can you find mortgage money safely without losing any of your investments along the way!


Whether you’re a first-time buyer or trying to refinance your mortgage, hiring a professional can help make the process of buying and refinancing easier. Mortgage brokers give their customers access to different lenders and products that might not otherwise come across their radar. They also know how much money will need in order to purchase a new property. If you have any questions about this article please contact us at [email protected]

Let's PLAN your FUTURE!

If you're considering buying your first property in Canada, be sure to contact us or book your Free 15 minutes call with us, This will help you prepare better for that big decision!

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Serujan Kaneshalingam

Serujan Kaneshalingam

Dedicated Mortgage Broker with One Mission: To help clients obtain the best financing solution for the acquisition or refinancing of your property.

Serujan Kaneshalingam

Serujan Kaneshalingam

Dedicated Mortgage Broker with One Mission: To help clients obtain the best financing solution for the acquisition or refinancing of your property.

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