Mortgage Loans

Mortgage Loans for the Self-Employed: All You Need to Know

Do you dream of building your own business? Does the idea of being your own boss and working on your own time appeal to you? Imagine yourself finally breaking free from the confines of a traditional 9-to-5 job. The best part is if your business succeeds, you will be able to earn far more than you would if you were working for someone else.

You’re not alone in this dream. More Canadians are aspiring to leave their traditional professions and embark on their entrepreneurial path. In fact, self-employment now accounts for 15% of Canada’s workforce.

Although self-employment has a lot of perks, it also has its fair share of disadvantages, particularly when applying for mortgage loans as a first-time home buyer in Ottawa. If you’re a self-employed professional or entrepreneur, you may wonder how the mortgage application works for you—especially the part where you have to submit financial documents. 

Approval for self-employed mortgages isn’t impossible, but it is more complicated than for those with regular employment. 

Look at why being self-employed may make your mortgage application more difficult and how to deal with this concern by reading the article. 

Proof of Income

When applying for a mortgage, you need to submit proof of income. And unlike employees who receive a consistent salary each month of each year, self-employed people manage their wages themselves. Moreover, it might take years for a start-up to break even. For improved traction, you may need to invest some of your own revenue back into your firm. This makes it difficult for a potential lender to have faith that you can keep up with monthly payments.

One of the benefits of owning a business is the ability to deduct costs from your taxable income. However, the disadvantage is that it is counterproductive to your mortgage application. It makes your lender question if you’re generating enough money for your loan. 

Additional Paperwork 

It’s a simple process to supply documents when applying for a standard mortgage as a regular employee. Your credit score, certification of employment, pay stubs, and a few other documents may be sufficient. 

But when you’re self-employed, you’ll need to go through a different set of documents to prove to the lender that you’re capable of paying off the loan. Some of these additional documents may include: 

  • Personal tax returns for the last two years 
  • Notices of Assessments for the past two years
  • Up to a year’s worth of bank statements to justify income if specified

Consult With a Reputable Mortgage Advisor 

While you’re busy running your company, your mortgage advisor is your best chance for getting the mortgage situation to work in your favour. As a self-employed individual, you must report both your personal and business financial status. Hire a reputable agent specialising in dealing with company owners to expedite the process and get approved for a mortgage loan. 

Applying for self-employed mortgage services in Ottawa may require additional paperwork, so allow your mortgage agent to guide you through the process.


When applying for a mortgage as a self-employed individual, know that you can get support from a professional. You’ll encounter a new set of challenges, but if you’re prepared and follow professional advice, you’ll be approved for a mortgage loan in no time.

Ottawa Mortgage Services provide mortgage agent services for first-time homebuyers in Ottawa, including self-employed individuals and commercial clients. We also help with mortgage refinancing, pre-approvals, and debt consolidation. Get in touch with our experts today! 


Millennial Home Buying Guide: Why Ottawa Is Perfect for You

Adulthood can be a very exciting yet overwhelming phase in your life, especially if you are still building your career as a millennial. Earning enough to cover your basic needs while paying off student loans is a difficult step to reach, and it may involve tightening the belt in some areas. Due to financial constraints and the current housing market, some young adults may prefer to rent rather than buy a home for themselves.

Buying a home is a huge undertaking that will require you to remodel your entire financial plan. But did you know that buying a new home is not entirely impossible as a young adult or a first-time home buyer in Ottawa?

If you are looking for a perfect home for every young professional and first-time home buyer, you are sure to find it in Ottawa. Read on for the top three reasons why Ottawa is the best place to live for young adults:

1. Affordable Real Estate

As a young adult just starting to save and invest, you might be looking for affordable real estate options in Canada. When it comes to real estate prices, Ottawa is undoubtedly an excellent choice. Compared to the market prices of starter homes in Vancouver and Toronto, rates in Ottawa are much friendlier to individuals or couples with median incomes.

If you look at the market prices across the big cities in Canada, the Ottawa real estate market is arguably the most accessible. The average real estate value of townhouses, condos, and similar properties is almost half of that everywhere else!

2. Quality of Life

In general, Canada is known for being a great place to enjoy the best quality of life. But among the cities with continuous economic growth, cultural diversity, and low crime rates, Ottawa is on top of the list. Transportation, job opportunities, and healthcare facilities are well prioritised. These advantages and more make a living in Ottawa a wise and sound decision for you and your future family.

If you plan to move out of your parents’ house and live independently, Ottawa is one of the most desirable cities you can call home. Aside from the affordable housing options, the main factors that propel Ottawa to the top of the list include a high safety index, economic security, and accessible health services.

3. Permanent Home

Buying property in Ottawa is a valuable investment if you want to expand your portfolio. Given the continuous growth and development in the city, you can expect a massive return in a few years if you eventually want to rent or sell. 

But if your main goal is to find a permanent home, then Ottawa is the right place. Whether you are starting your own family or intending to live independently, there’s no place better than this beautiful and peaceful yet bustling city.

Final Thoughts

Are you looking to buy your very first home? Ottawa is a great place to build a new life. Its beauty, peace, affordability, and quality of life are very difficult to say no to. You can begin hunting for beautiful homes, get them assessed, and consult with mortgage experts today.

If you want to jumpstart your millennial home buying journey, contact us at Ottawa Mortgage Services today. Our expert team offers mortgage services and home equity loans in Ottawa for first-time buyers, employed individuals, and commercial clients. Apply now and get a head start!

Debt Consolidation loan declined

Got Declined for a Debt Consolidation Loan? Here’s Why

Debt consolidation loans are there for when you’re experiencing financial difficulty. It’s an easy fix for a debt problem that has piled up, and it’s also ideal for when you want to lower your interest rates and combine all debt into one monthly repayment. 

While it seems like a good idea for most people, getting approved for a debt consolidation loan is not easy. Here are five reasons why people get declined for debt consolidation applications:

You Don’t Have Enough Income to Get Approved

A debt loan payment commonly costs more monthly compared to the minimum payments for credit cards. So, once you realize you’ll benefit more from a consolidation loan, you might only be able to make minimum credit card payments and not another dollar more.

Credit card minimum payments are usually so low that it can take up to decades for you to pay off your balance fully. Moreover, that’s only if you stopped using the credit card to pay for expenses.

Consolidation loans cannot be paid off over a long period unless secured by your home. They’re usually amortized over three to five years, meaning that payments need to be high enough to pay off the loan within that period. If your income cannot handle that much payment, you’ll likely get declined.

There’s a Problem with Your Credit Report and Score

Many credit report and credit score issues prevent people from getting approved for a debt consolidation loan. For instance, late debt payments or debts in collections can damage your credit score. 

High balances owing can also contribute to the issue of getting approved. Since there are so many variables in a debt consolidation loan, you should instead read a detailed explanation of how credit scores are calculated.

You Can’t Present Enough Security or Collateral

Financial institutions generally ask for security or collateral as you apply for a debt consolidation loan. That is especially important if you’re someone who’s having a hard time managing all your payments. These institutions only want to make sure that you can make repayments for the amount they’ll lend you.

When you don’t have anything to offer as collateral, you might think about using a credit card to pay off your other debts at a high interest rate instead. Meanwhile, other people apply for an unsecured loan from a finance company at sky-high rates, sometimes as high as 30 percent.

So, if your goal is to reduce debt, then these choices don’t offer a viable alternative. That is because a large portion of your debt payment will end up on the interest rate, and not on principle. 


Applying for a debt consolidation loan, much like any other loan, involves a lot of factors. If you cannot meet most requirements, you’ll likely get declined. Financial institutions want to make sure that lending you money is worth it on their part, so if they’re not convinced that you can meet monthly repayments for the loan you’re getting, they won’t approve your application. 

Ottawa Mortgage Services provides mortgage agent services for first-time homebuyers, self-employed individuals, and commercial clients. We also help those applying for refinancing, pre-approvals, and debt consolidation loans. So if you’re looking for the best debt consolidation loans in Ottawa, ON, apply with us today! 

Buying a new home

Does It Make Sense to Pay All Cash for Your Next Home?

You have heard of the adage “cash is king,” and you may agree on this, but how do you think it applies when it comes to buying a house? This may be something that you haven’t thought about before, but it’s certainly worth considering. And in this post, Ottawa Mortgage Services will tell you why: 

The Obvious Reason

When you are ready to pay cash for the house, you have the edge over other interested buyers because the seller will be motivated to close the deal with you. This can be helpful, especially if several bidders are competing for the house you like.

That said, you should know that while paying cash for a home makes sense for many people in specific real estate markets, it might not be the best option for some. This downside includes getting a huge chunk of your investment capital tied up with a single asset class. It also means you’re sacrificing liquidity. 

The Process of Purchasing a Property with Cash

The first step in purchasing a property all in cash is raising the amount that you need. Unless you already have the money ready in your bank, you’ll likely have to liquidate other assets and have the proceeds deposited into your bank account. 

The seller might ask for proof that you do have the cash, like a bank statement. After that, the process is pretty much the same as how it is when you buy a home with a mortgage, except that there won’t be a mortgage lender in the picture. 

Pros of Paying All Cash for a Property

You’ll Be a More Attractive Buyer

As mentioned earlier, sellers are more interested in buyers who don’t need to apply for a mortgage to make the purchase. You are likely to be taken more seriously when you can prove that you can buy their house in cash. 

You’re Likely to Get a Better Deal

Because you’re more appealing to sellers, you are in a better position to get yourself an excellent deal. This is especially the case if the seller needs to sell the house fast. 

You Won’t Have to Worry About Applying for a Mortgage (and Paying for It)

A mortgage application requires a lot of documents – from proof of income to records of credit history. The process can be tedious, especially if you don’t have those documents ready. There are mortgage companies that are not too strict with the approval process, but they’re still going to request the necessary documentation from you.  

If you pay for the house in cash, you won’t have to worry about monthly payments for many years either. 

Cons of Paying All Cash for a New Property

You’ll Tie Up All Your Money in One Asset Class

If the amount needed for the new house equates to most of your savings, then you’d be breaking one of the rules of smart personal finance, which is diversification. Also, the ROI of residential real estate lags behind stocks and other types of assets. 

You’ll Lose the Financial Leverage You Can Get From a Mortgage

When you buy a property using borrowed money, the potential return is higher. That is assuming the property increases in value over time. Note that this could go the other way, too, if your home’s value declines. Of course, that may not matter if you’re planning to live in the house anyway. 

You’ll Give Up Liquidity

Liquidity refers to how fast you can turn your investment into cash if you need to. One example would be your savings in the bank, which you can get in cash almost instantly. Brokerage and mutual funds could take longer, but they can still be turned into cash when needed. A home, on the other hand, can take months to even years to sell. 


We want to impart with you in this post that the idea of paying for your next home all in cash should be approached with consideration. There are pros and cons to it, and depending on your particular situation, it could be the right solution for you or not. You need to weigh things carefully. You should also speak to a reputable company that offers excellent mortgage services to know if there are more desirable options than paying for a home in cash. 

Ottawa Mortgage Services can answer all your questions about mortgages and provide help with pre-approval, refinancing, and more. Contact us today to know more about our expert mortgage services!