These days contract workers, the self-employed, and freelancers make up a significant portion of the job market, and this trend continues to grow each year. As full-time permanent employment opportunities continue to dwindle, many people are finding it harder to feel like they have a secure and stable source of income. This lack of stable income might make you concerned that you could be at risk of not getting approved for a mortgage, or be at risk of being denied a mortgage at renewal time.
The following tips are key to ensuring you and your finances are prepared when it comes time to renew your mortgage!
Start Shopping Early
Before your current mortgage terms expire, your mortgage provider will likely send you an offer to renew with them, generally at the same terms. You’re busy, and this is easy, so why not just renew! One less thing you need to juggle, right?
Being self-employed or a freelancer, however, means your financial situation may have changed significantly between when you signed your current mortgage to now. Even though you don’t need to re-qualify with your current lender, they will still do their due diligence on your financial situation and look at your credit score.
Regardless of your situation the best idea is always to start looking into your mortgage renewal situation early so that you can capitalize on refinancing options when they arise.
Did you know that Canada has a specific mortgage for the self-employed? This option could be great for you depending on the circumstances of your employment, though you need to be prepared to fulfill a number of requirements for the lender including but not limited to:
- Your personal and business credit scores
- Proof your HST / GST has been fully paid
- Your businesses financial statements & more
Upon renewal, depending on your credit score, self-employed borrowers can refinance up to 80% of the home’s value.
Contact The Mortgage Station
As someone who is self-employed or working on a contract, you have far too much on the go to add learning about the nuances of the mortgage renewal process to your schedule.
As a mortgage broker, The Mortgage Station has access to multiple mortgage options, and we’re dedicated to helping you to determine the one that is best for you.
Putting our clients first, we can bring peace of mind to all homeowners with knowledge and planning that will help them to unlock the mortgage opportunity that best meets their needs.