Being self-employed offers flexibility and independence but can also make securing a mortgage a bit more complex. With sometimes inconsistent income and fewer traditional employment records, many business owners find it challenging to meet conventional mortgage requirements. But don’t worry—there are proven strategies to help you navigate the process.

1. Get Organized Early Lenders need to see proof of income and stability. Gather at least two years’ worth of financial statements, Notices of Assessment, and bank records. Having these documents on hand shows you’re prepared and demonstrates financial reliability.

2. Work with a Mortgage Broker A mortgage broker experienced with self-employed clients can guide you to lenders who specialize in non-traditional income scenarios. They can also explain which lenders will accept your full income, including retained earnings and one-time contracts.

3. Consider Stated Income Mortgages If your income is hard to document, some lenders offer stated income mortgages or bank statement mortgages. These loans also consider your credit history and assets instead of relying solely on tax returns. While rates may be slightly higher, these loans can bridge the gap if traditional underwriting methods don’t reflect your earning power.

4. Build a Strong Credit Profile A high credit score and clean credit history make you more appealing to lenders. Pay down high-interest debts, maintain consistent credit card payments, and avoid taking on new debt during the mortgage application process.

5. Increase Your Down Payment The more you can put down, the less risk the lender assumes. If you’re self-employed, offering a larger down payment can make lenders more willing to approve your mortgage application.

Being your own boss shouldn’t keep you from owning your dream home. By staying organized, working with the right experts, and exploring alternative mortgage products, you can successfully navigate the lending landscape and secure a mortgage that fits your needs.

Entering the housing market for the first time can feel overwhelming. With soaring property values, stricter lending guidelines, and so many mortgage options, it’s hard to know where to begin. But armed with the right strategies, first-time homebuyers in Ontario can navigate the process with confidence.

1. Get Pre-Approved for Your Mortgage First A pre-approval not only helps you understand your price range, but it also shows sellers you’re a serious buyer. Knowing your budget upfront allows you to narrow your search to homes you can comfortably afford, avoiding disappointments down the road.

2. Consider All Down Payment Options While many buyers aim for a 20% down payment to avoid CMHC mortgage insurance, don’t overlook other options. You might qualify for the First-Time Home Buyer Incentive or use RRSP savings through the Home Buyers’ Plan. Even a smaller down payment can work, as long as you’re mindful of the overall cost of borrowing.

3. Factor in Closing Costs Beyond the purchase price, there are additional expenses such as land transfer taxes, legal fees, and home inspections. First-time buyers are often eligible for rebates or credits, so explore these to reduce your out-of-pocket expenses and budget 1.5% of the purchase price for closing costs.

4. Work with a Mortgage Broker Instead of relying solely on one lender, consider working with a mortgage broker who can shop multiple lenders to find you the best rates and terms. Brokers can also explain complex mortgage products, like fixed vs. variable rates, helping you choose the right fit for your financial situation.

5. Be Flexible and Patient The Ontario housing market can be competitive. Finding the right home at the right price may take time. By being patient and willing to adjust your expectations, you can avoid rushing into a purchase that doesn’t fully meet your needs.

For first-time homebuyers, preparation is key. With a clear budget, knowledge of available assistance programs, and expert guidance from a mortgage broker, you can secure your first home without unnecessary stress. Remember, this is one of the most significant financial decisions you’ll make—take your time, ask questions, and stay informed.

options. Even with the latest rate drops, rates have risen since the low rate COVID years, meaning you may be facing higher payments than before. However, lenders are competitive, and there maybe opportunities to restructure your mortgage to better fit your financial goals.

A mortgage review can help you determine whether refinancing, switching lenders, or adjusting your term length makes sense. Even if you’re not renewing yet, it’s a good idea to plan ahead and explore options before you’re locked into a higher rate.

SELLERS: SETTING REALISTIC EXPECTATIONS

If you’re considering selling this spring, the key is to price your home correctly. Overpriced homes tend to sit on the market longer, while competitively priced properties attract serious buyers. Work with a knowledgeable real estate agent to assess recent comparable sales and set a fair asking price.

Presentation matters, too. With more homes hitting the market, staging and curb appeal can make a big difference in attracting buyers. Small upgrades, decluttering, and professional photos can help showcase your home in the best light.

PLANNING AHEAD IS KEY

Spring is an exciting time in real estate, but it’s also a season that requires careful planning. Whether you’re buying, selling, or refinancing, having a strategy in place will help you make informed decisions and get the best outcome.

As your mortgage advisor, I’m here to help you navigate these choices. If you have questions about mortgage options, pre-approvals, or refinancing strategies, let’s chat. The right advice now can set you up for financial success in the months and years ahead.