“If people have less choice with their bank, they need to find an alternative, and that is often to go to a broker,” Bryan Guertin, a mortgage broker with Mortgage Intelligence
, told MortgageBrokerNews.ca. “We have alternative financing options, whereas the banks have one program and clients have to qualify under that program.”
It’s no secret that for self-employed clients constitute excellent business for brokers – Guertin estimates these clients make up 60% of his own business.
But recently released stats point to just how much this segment is growing. According to Statistics Canada, over half a million Canadians become self-employed every year. And that number grows when general unemployment ticks up.
“Canada has a relatively large group of self-employed individuals who operate unincorporated businesses,” StatsCan said in a report released earlier this month. “In 2014, there were more than 1.5 million Canadians engaged in unincorporated self-employment activities, accounting for 9% of total employment.”
And while self-employed deals pose unique challenges, brokers certainly seem up to the challenge.
“Often we have to put self-employed clients with b-lenders and qualify their gross income instead of theirnet income,” Guertin said. “When we go to a b-lender, they ask for 12 months’ worth of bank statements and that’s how they qualify the client.”
Rising self-employment numbers are creating a lucrative opportunity for brokers, who have much more to offer these clients than big bank counterparts, according to one industry player.