Mortgage loan for freelancer immigrant

[LucaFuller]

Hi,
I need help in finding the best mortgage brokers in Alberta. I moved to Canada a few years back. I am a freelance programmer. I make pretty good money in a month. I want to buy a house in Edmonton. The savings I have is really low, it can only pay 5-6% of a property. So I decided to take a mortgage loan. My internet research showed that I can get a mortgage for the minimum 5 % as down payment. So I consulted a mortgage broker. But after assessment of my taxes, they said that I won't get a mortgage with 5% of down payment and I will have to pay a minimum of 20%. I was really shocked because I can't afford 20% as down payment.
Can this be an error of the mortgage broker? If so, Who is the best mortgage broker in Edmonton I can consult? Can I directly approach a lender? If so, Which all lenders provide new home mortgage in Edmonton? Any helpful advice will be appreciated.

 

[canuck78]

Self-employed people often have to put down a larger deposit and/or pay a higher interest rate because they are a bigger risk for a lender because they don't have a guaranteed monthly income. You also have not established a long credit history which also makes you a greater risk for the lender so a second reason why you may not qualify for 5% down. I would consult another mortgage broker for a second opinion but I think you may have to wait a few more years or pay a higher rate.

 

[LucaFuller]

Self-employed people often have to put down a larger deposit and/or pay a higher interest rate because they are a bigger risk for a lender because they don't have a guaranteed monthly income. You also have not established a long credit history which also makes you a greater risk for the lender so a second reason why you may not qualify for 5% down. I would consult another mortgage broker for a second opinion but I think you may have to wait a few more years or pay a higher rate.

Thanks for the reply. You said either I can pay a higher rate or wait a few years, Can you please tell a rough amount of difference in percentage if I wait a few years?

 

[canuck78]

You'll have to talk to a mortgage broker. It will also depend on your credit, how much you earn and how much you want to borrow. I would imagine a significant difference probably 5-10% maybe more.

 

[LucaFuller]

You'll have to talk to a mortgage broker. It will also depend on your credit, how much you earn and how much you want to borrow. I would imagine a significant difference probably 5-10% maybe more.

Thanks. Do you any experience with mortgage brokers in Edmonton?

 

[canuck78]

No I'm on the other side of the country. I would try a well recognised /comapny group not just one person. Shouldn't be too hard to find.

 

[torontosm]

Thanks for the reply. You said either I can pay a higher rate or wait a few years, Can you please tell a rough amount of difference in percentage if I wait a few years?

As a self-employed person, it will be easier for you to obtain a mortgage loan through a non-bank lender, such as a credit union, an alt-a lender or a private lender. These groups can charge anywhere from 6% -14% for mortgages, but will likely still not lend you 95% of the value.