If you are self-employed, it can be a little trickier to get a mortgage, but do not fear! There’s no reason you can’t get on the property ladder.
Work may be more inconsistent than if you had a regular office job, and you’re not always able to ensure you’re paid on time. In addition to this, since the pandemic, many lenders have upped the amount needed to secure a deposit. So what can you do?
Simply read on, for some handy tips to help you buy a home in Vancouver.
Plan ahead
Aim to keep your finances in check, at least two years before you apply for a mortgage. Lenders need to see proof that your freelance work is fruitful and consistent enough, that you’ll be able to make continuous payments. As well as this, it’s worth ensuring your tax returns are submitted on time, and that you’re up to date with any payments you make.
In addition to your income, you’ll want to keep a clear record of your expenses.
Consider using a Mortgage Broker
As a freelancer, you will know better than anyone, what your time is worth. Consider using an Independent mortgage broker that has access to the whole mortgage market – they can help to uncover the best options for you. They will have your best interests at heart when giving advice, freeing up your time, to be used elsewhere.
Explain your role
You must also be prepared to explain to a lender, exactly what you do. You need to show a strong understanding of the industry you’re in, as well as any fluctuations that could occur. Even if you haven’t been freelancing for very long, add details about previous work experience within your industry, to prove you know what you’re doing.
Open a savings account
There are a ton of options out there for different savings accounts. Find a Help to Buy ISA that works for you. This way, you could be gaining interest on the money you save. Every penny counts when you’re buying your first home, so shop around for the best interest rates possible.
Save where you can, only spend when you need to
As a freelancer, you need to be a little more careful with your income. Generally speaking, when you buy a home, there will be a lot of unexpected expenses, so it’s worth trying to save money to begin with. Consider looking in charity shops, eBay, and using Facebook marketplace, when buying furniture and accessories to adorn your new home. There are lots of ways that you can save, but you can’t skimp on everything; electrics, internet, and decorating etc, should be more expensive – going for the cheapest options, may leave you unstuck.
Despite the extra challenges, don’t be discouraged. Buying a home as a freelancer is achievable, and will make you feel on top of the world! So take these tips and tricks into account to get you started, and always seek the advice of a professional.
