4 Ways Low Income Holders Can Qualify For A Mortgage

Need a mortgage but not having enough income to qualify? It may be tough to secure a mortgage, but for certain borrowers, having established businesses, bank statements, or reference letters may be enough to get authorized for a mortgage. Borrowers with freshly established businesses may have difficulty obtaining a mortgage, and bank documents or reference letters alone may not be adequate for approval.

Borrowers want to close a mortgage contract when interest rates fall, but they frequently overlook to consider their annual income. If you cannot establish adequate income to qualify for a mortgage, banks may reject your application; however, alternative lenders may lend more based on your overall ability to pay.

In this blog, we’ll discuss four convenient ways mortgage brokers can get you approved for a mortgage:

1. Contributory Income

Family members typically contribute to bills; consider granny staying in the guest room or your parents in an in-law apartment. These family members may not own the home, but alternative lenders will consider their payments when considering your eligibility for a mortgage.

Some lenders will accept well-documented part-time or gig income as an alternative to the traditional two-year income history. Bank statements or reference letters may be sufficient verification for some borrowers with new cash businesses. Consider getting it approved by a large bank, especially if you have a low credit score.

2. Liquid Assets

Some lenders use the assumption that you can turn your assets into cash to calculate how much you can afford. A lender may use cash or anything that may be quickly turned into cash to support exceptions to its debt ratio guidelines. RRSPs may even be taken into account by some lenders when granting a bigger loan amount.

3. Future Income

Future income growth is almost guaranteed for professionals like doctors, dentists, and lawyers, and many lenders are eager to place bets on it. Non-professional borrowers may also qualify if they expect to receive pension, rental, alimony, or child support income soon.

Lenders are willing to assist even those who are new to Canada, have recently opened a business, or are transitioning from a steady salary to self-employment. All they have to do is demonstrate that they have a reliable source of income.

4. Future Assets

Future cash availability is offered to borrowers who have another home listed for sale, have a trust fund available, or expect to receive an inheritance during the mortgage term. A portion of these assets is usually used by alternative lenders to settle debt or settle mortgages.

Retained cash kept in a business account may even be accepted by some, provided that it is debt-free and always available to you.

Conclusion

When it comes to applying and getting approved for a mortgage, Sandhu & Sran Mortgages is the name to trust. Our Abbotsford mortgage brokers can assist you in finding the best mortgage products from a network of over 30+ lenders. From residential to commercial mortgages and everything in between, we have helped hundreds of eligible borrowers in getting approved for a low rate mortgage.  For more details about our mortgage services, feel free to give us a call today.