Becoming self-employed can be a rewarding career change, offering greater flexibility and the chance to be your own boss. However, it can also bring challenges, especially when it comes to securing a mortgage. If you’ve been employed in a similar field for a while and have now taken the leap to self-employment, you may be wondering about your mortgage options. Luckily, there are some great solutions available, particularly through the CMHC Enhanced program.
Understanding Mortgage Challenges for the Self-Employed
Traditional mortgage lenders typically look for consistent, verifiable income over a couple of years to approve a mortgage. For the self-employed, this can be tricky, especially in the first few years when your income might be more variable. Lenders often require proof of income through tax returns and financial statements, making it harder for new entrepreneurs to meet the criteria.
CMHC Enhanced Program: A Great Option
The Canada Mortgage and Housing Corporation (CMHC) understands the unique challenges faced by self-employed individuals. Their Enhanced program offers more flexible criteria for those who have been self-employed for less than two years but have been working in a similar field for a longer period.
Key Benefits of the CMHC Enhanced Program
Flexibility with Documentation: Unlike traditional mortgages, the CMHC Enhanced program allows for alternative documentation to prove your income. This can include contracts, invoices, and bank statements, offering a more comprehensive view of your financial situation.
Recognizing Your Experience: If you’ve been in the same industry for a while and have recently gone self-employed, the CMHC Enhanced program acknowledges your experience. This means that even with less than two years of self-employment history, you can still qualify for a mortgage.
Affordable Homeownership: By offering more flexible criteria, the CMHC Enhanced program makes homeownership more accessible for the self-employed. You can secure a mortgage with reasonable terms and start building equity in your new home.
Steps to Secure a Mortgage Under the CMHC Enhanced Program
Prepare Your Documentation: Gather all relevant documents, including contracts, invoices, bank statements, and any other proof of income. This will help paint a clear picture of your financial situation for the lender.
Work with a Mortgage Broker: Navigating the mortgage landscape can be complex, especially when you’re self-employed. A mortgage broker can help you understand your options and guide you through the application process.
Reach Out for More Information: If you’re interested in learning more about the CMHC Enhanced program and how it can benefit you, don’t hesitate to get in touch. We’re here to help you explore your options and find the best solution for your unique situation.
Conclusion
Being recently self-employed doesn’t mean you have to put your homeownership dreams on hold. With the CMHC Enhanced program, there are great mortgage options available that recognize your experience and offer the flexibility you need. Reach out today to learn more and take the next step towards securing your mortgage and owning your dream home.
Feel free to contact us for more personalized advice and to get started on your journey to homeownership. We’re here to help you every step of the way!