“Self-employed entrepreneurs find it difficult to get mortgages.”
I recently read an article in the Financial Post that was quite intriguing. The article captured my attention because as a Realtor I am self-employed, which makes obtaining a mortgage tricky. After 12 years in the business, Dita and I have certainly showed a great track record and consistent income, so the process has become simpler, but it wasn’t always that way. Getting a mortgage was often a challenge. The same is true for many potential buyers who come across our paths. They have great income, great credit and are great people, but the lenders don’t like them because they are entrepreneurs. Should these entrepreneurs be penalized because they decided to take a risk?
These people, who take risks, who don’t follow the social status quo, you know, go to school, get a safe job, pay off your mortgage then retire… are the backbone of our economy. These people employ other people, whom by the way can get a mortgage because they are employed. Isn’t that funny?
So CMHC has decided to investigate how they can cut some red tape to make it easier for self-employed people and immigrants who don’t have the Canadian work experience, get a mortgage. The preliminary potential plans seem to suggest that finding a way to increase CMHC insurance premiums for self-employed individuals is the way to go. The theory, which seems intelligent, is based on the premise that it is better to make mortgages available with increased insurance premiums, rather than not having them available at all.
In times where getting mortgages is harder and harder with the enhanced mortgage rules of late and the higher interest rates, this change is refreshing. I hope to follow this story, and comment on it’s development in the future. For now, just hang tight.
Finally something good to talk about!