Whether you’re refinancing your mortgage to take out equity for a renovation or to pay debt, or buying another a house, your income plays an important role in qualifying for a mortgage. 

You may have already spoken to your bank or possibly another mortgage broker and they weren’t sure if your income could be used to qualify for a mortgage. Some of the common problems that banks have are: if you have been self-employed for less than two years, are on a contract that has a terminating date or work on a casual basis where hours-worked-per-week aren’t guaranteed. 

Here are some examples of non-traditional income that we can use to help you qualify for a mortgage (that typically don’t fit within most traditional mortgage lending): 

Supply teaching or not on a full-time teaching contract 

We know that it’s difficult to get a full-time teaching position.  Many teachers make good money but go from contract to contract for years until they reach a full-time position. If you’ve been working as a teacher for 2 years and don’t have full-time status, we can use this income to help you qualify for a mortgage.  

Started a new job and on a probationary period 

Some jobs have long probationary periods that could last for a year. Alternatively, you may have just started a job and are on a shorter probationary period. The good news is that if you have previous tenure in the same line of work, we can use this income to help you qualify for a mortgage.  

University stipend if you are doing graduate work 

When it comes to using this income to qualify for a mortgage, a two-year history is a requirement. Money you are receiving for your research is different than money you’re receiving as a stipend to pay for your living expenses. We can use your income if you have a graduate school contract that has a stipend associated with it.  

Stated income programs for self-employed individuals 

More and more individuals are realising the opportunity to be self-employed. Typically, self-employed individuals show low net income on their tax returns to help them manage income taxes. This becomes challenging when qualifying for a mortgage as most lenders look at net income on personal income tax returns not gross income. Low net income limits one’s ability to qualify for a mortgage. We can often use a variation between what you gross in your income versus what you net on your tax returns. Typical documentation required up-front are six months of business bank statements to show gross income and expenses to determine an income that would be appropriate for mortgage qualification. 

The most important aspect of getting a good mortgage when your income is not typical is to have at least 15-20% equity in the property (or a down payment) and to maintain a good to excellent credit history.  

At The Mortgage Centre we’re skilled professionals who can help you determine what the best way to present your income details to the lender so you can get approved for the mortgage you want or need. 

For information on your specific situation, book an appointment with us today: /contact-us/