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A
mortgage that gives the self employed credit
for great credit.
A large and growing segment of Canadians are taking advantage
of flexible or unconventional employment opportunities.
In fact, the self-employed now represent close to 16% of
the country's workforce. Today's generation of contractors,
freelancers, consultants, commission sales professionals
and small business owners have come to value independence
in their day-to-day work. Now, that entrepreneurship is
no longer penalized when it comes to mortgage financing.
For many it was an embarrassingly familiar story. They enjoyed
a successful professional life, but when they applied for
a mortgage, they found themselves on the defensive - trying
to prove to a lender that they actually earned enough income
to service the mortgage they wanted, with many turned down
because their income just didn't measure up.
Hard to believe, but true. If you work independently or
own a business yourself, then you know that it pays to keep
your taxable income as low as possible. That makes you a
smart business person. But the story can change when you
try to get a mortgage. Your income - at least on paper -
may not support the mortgage payments, and you could be
penalized for smart income management.
For Canadian homebuyers stuck on the income obstacle, the
latest mortgage news on the street will come as a delightful
shock. The newest mortgage does the unthinkable: it doesn't
require you to show your income records.
"It
can't be true", you're thinking, or there must be some
hitch. In fact, it's both good sense and good business.
Innovative lenders had already begun to recognize that your
T4 may not tell the whole story, as a myriad of stated-income
mortgages have been launched over the last few years. But
this concept of not including any income figure at all is
an idea that's long overdue.
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