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Mortgage solutions for the self-employed

June 30, 2020

While small to medium size businesses are often cited as the backbone of the Canadian economy, you might be surprised to learn that those business owners can sometimes struggle to obtain financing from A-lenders. That’s because self-employed individuals are often turned down by top-tier banks, whose representatives don’t take the time to properly assess their complex applications.

The major banks only cater to specific A clients and often do not offer options to clients who have short term difficulties or otherwise complicated lending profiles. Orbis Mortgage Group and its brokers have access to a wide array of both A and alternative lenders who offer attractive self-employed and stated income programs.

Why do self-employed individuals have unique lending profiles?

People who are self-employed are often business owners, and a natural extension of being a business owner is having expense deductions and in turn potentially a low reported taxable income. To the banks, a low reported taxable income can be a red flag, making the applicant ineligible for lending, or ineligible for a mortgage loan in the amount they require.

Another roadblock faced by the self-employed is the lifespan of their business. If someone is newly self-employed they likely won’t meet the requirement A lenders have of a minimum of two years of business history.

What challenges do stated-income applicants face?

People with non-traditional incomes, such as those who work on commission, in cash-based businesses, or those who have irregular part-time employment, can face challenges when applying for a mortgage. This cohort of applicants is growing today, as the gig-economy has led many prospective homeowners to forego the traditional forms of income and employment and instead opt for alternatives, such as driving for a car service, flipping homes for profit, or owning a short-term rental property.

How can Orbis help?

Despite having a complex lending profile, there are solutions for self-employed and stated-income applicants. In fact, Orbis’ experienced brokers have access to tailored products and competitive rates through alternative lenders that are geared specifically to non-traditional applicants. That means self-employed applicants can enjoy the income and credit flexibility that comes with owning a business, all while qualifying for maximum personal lending.

Whether you own a small family business or are working three jobs to earn a living, if homeownership if your goal Orbis is ready to help by working with lenders who understand the unique profiles of self-employed and stated-income applicants.

Orbis Mortgage Group has experience in all of these situations. Let our team help guide and find customized products for your lending needs and lifestyle goals.

Call us today to get started.

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