“With all the new government regulations that have come out over the last few years, it has affected the self-employed the most,” says Bryan Guertin, principal broker for Mortgage Intelligence
Oakville. “CMHC no longer insures stated-income mortgages and the other two insurance companies that still do have really tightened up with the qualifications. Many self-employed are finding out that their bank can no longer help them.”
His recent article in the Hamilton Spectator
explains the many ways that brokers work with self-employed Canadians, such as freelancers, contractors and small business owners.
“The timing of this article is perfect,” Guertin told MBN
. “We have to make these potential clients aware that there are other mortgage lenders out there that qualify them in a different way to make the numbers work.”
And although BFS clients sometimes end up paying a higher rate, there are ways to keep the numbers down; but it isn’t easy.
“Depending on the equity in their homes, some self-employed deals can be done at best rates,” says Guertin. “I have been a mortgage broker for over 40 years, placing BFS mortgages has always been easy, but we now find them tougher to place.”
The business-for-self client base is simply too large for brokers to ignore, and one that is tailor-made for brokers to engage, says Tom Hickey, VP Operations (Adjudication) for B2B Bank.
“The BFS segment in Canada is growing and represents about 18% of the workforce,” Hickey told MBN
. “We see an opportunity to adapt to the changes in the workforce Canada is experiencing.”
And Guertin has seen first-hand his own BFS client base increase.
“In the past, approximately 40% of our transactions were BFS,” he says. “Now we are at 60%.”
Spreading the word about what brokers can do for clients hasn’t been easy – but there are ways to inform and educate, and in the process, build a book of clients.