| |
•
Mortgage Calgary
•
Mortgage Canada
•
Canadian Mortgages
•
Canadian Mortgage Lender
•
Second Mortgages Canada
•
Refinance Mortgages Canada
•
Mortgage Brokers Canada
•
Mortgages Alberta
•
Mortgages Edmonton
•
Cash Back Mortgages
----------------------------
|
Self Certified Mortgage
A
self certified mortgage is ideal for people who are self-employed. Before, it was difficult for entrepreneurs, people with irregular income, and freelancers to apply for a loan. This is because lenders require their borrowers to write off their expenses and declare their income statements. Payslips, bank records, and other documents that declare the financial status of a person were used to acquire a mortgage. However, since the number of self-employed individuals have been increasing, lenders designed a mortgage type for these borrowers. This kind of loan is called self certified mortgage.
A self certified mortgage allows
self-employed individuals to inquire for a mortgage without providing their lenders with any paper that states their income. Twenty percent of the total Canadian income-earners are found out to be self-employed, so this kind of mortgage is very useful to them. If you are self-employed, all you need to do is to state your income to your lender and confirm that you have the ability to pay your loan. Usually, self certified mortgages have higher interest rates than other mortgage types.
Although you do not have to submit any paper that states your net income to your lender, you are required to have a good credit history. Instead of using your income statement as a basis for your loan qualification, your lender can examine your credit record to determine your creditworthiness. Bankruptcies, foreclosures, and late payments can hinder your from getting a mortgage.
It is so much easier to be a borrowers today than years ago. There are various self certified mortgage programs with competitive rates in the market and the choice is up to you.
|
|
|
