Is it hard to get a mortgage if you're self-employed?

Obtaining a mortgage as a self-employed individual can be more challenging than for someone who is traditionally employed, but it is not impossible.

The primary reason why it may be more difficult for self-employed individuals to secure a mortgage is that they typically have more complex financial situations that can be harder to document and verify. Traditional mortgage lenders typically require borrowers to provide several years of tax returns, financial statements, and other documentation to prove their income and financial stability. However, self-employed individuals may have fluctuating income, which can make it challenging to provide a stable income history.

To improve your chances of getting approved for a mortgage as a self-employed individual, it is essential to keep accurate records of your income and expenses, maintain a healthy credit score, and work with a lender that specializes in working with self-employed borrowers. You may also want to consider putting down a larger down payment, as this can reduce the lender's perceived risk and increase your chances of getting approved.

While getting a mortgage as a self-employed individual may be more challenging, with proper planning, organization, and working with the right lender, it is still very much possible.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.