Prepare your mortgage application as a self-employed worker

In the article entitled "Mortgages and self-employed workers: tighter conditions to qualify" published in Protégez-vous, John Fucale, Senior Vice-President in charge of broker relations at Multi-Prêts, shared essential advice for self-employed workers seeking a mortgage. These workers, whether incorporated or not, face particular challenges as financial institutions scrutinize their files more closely due to the less predictable stability of their income.

Increase your declared net income

To improve your chances of success, one strategy is to increase your net income declared to the lender by around 15%. "This amount reflects the professional costs associated with your business, such as office and transportation expenses," says John Fucale. Although these are business expenses, they are directly related to your work and contribute to your actual costs. "A broker can help you prepare this type of file," he adds.

Self-declaration of income

If your declared income seems insufficient to convince a lender, another option is to use self-declaration. "In practical terms, this involves filling in a self-declaration form and providing the last 12 months of bank statements for the account into which your company's deposits are made," explains John Fucale. This method allows lenders to get an overview of your financial situation and establish a qualifying income that goes beyond a simple tax return.

Plan your loan application in advance

For those considering buying a property, John Fucale recommends preparing your loan application well in advance. "Plan your application two to three years before you buy, increasing your declared income," he advises. This will make it easier for you to qualify and access more competitive interest rates. Long-term preparation helps you present a solid case to lenders and obtain favorable terms.

Consult a mortgage broker for personalized assistance

Faced with these challenges, the help of a mortgage broker is highly recommended. He or she can guide you through the steps involved in preparing your file, and help you find the best financing options for your situation.

Source : Multi-prêts