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In Canada, the housing market is experiencing growth, with self-employed homebuyers emerging as a significant segment. Statistics Canada (StatCan) data from 2022 indicates that over 2.6 million Canadians are self-employed, representing a diverse group. This segment includes not only traditional small shop owners but also specialized professionals in fields such as IT and finance. StatCan also highlights a consistent rise in self-employment within professional, scientific, and technical services over the past three decades.

This evolving diversity among self-employed borrowers necessitates a tailored approach. A one-size-fits-all strategy is inadequate given the different circumstances of convenience store owners compared to financial consultants. Brokers play a pivotal role in this context, providing financial expertise and personalized solutions aligned with the unique stories and goals of self-employed clients.

To better understand their clients, experienced brokers prioritize the "discovery meeting" phase. During this initial meeting, brokers delve into the client's business and financial structure. Understanding the client's risk tolerance and business type, whether sole proprietorship, partnership, or incorporation, is crucial.

Brokers also emphasize grasping the client's entire financial situation, including reviewing bank statements, assessing expenses, and reconciling financial data with tax returns. This approach allows brokers to work with the client's actual income, not just reported revenue.

Effective brokers like Nicole Tracey of Mortgage Architects collaborate with lenders, presenting comprehensive packages that encompass all relevant requirements, such as licenses, contracts, and account statements. These packages are structured around the unique narratives of their clients, facilitating clear communication of the client's financial story to the lender.

In this process, the choice of lender plays a vital role. Alternative lenders understand the distinct needs of self-employed borrowers. They offer flexibility and a willingness to comprehend the client's story, making them a suitable choice for this segment.

If you are self employed and have questions about your potential to renew or get a mortgage call Nicole!