The latest numbers are in and they give reason for brokers, especially, to be optimistic.
Statistics Canada released its employment numbers Friday and, while the unemployment rate remained unchanged, one segment received an injection of new talent. And it’s a segment known to turn to brokers for their mortgages.
The country added 40,000 self-employed people to the workforce in December, according to StatsCan.
Good news for brokers.
“The rules to qualify for business-for-self clients are tighter, so they really have to know where to go,” Mark Mighton, a broker with RMA Home Free Mortgages, told MortgageBrokerNews.ca. “So when they work with someone who has exposure to more options helps them get the best mortgage. A lot of BFS clients fall in my lap.”
Brokers are best equipped to service self-employed Canadians, and that holds even truer for Canadians who are new to the self-employed world.
“The banks are pretty fussy … if you’ve been self-employed for less than two years it’s even more challenging because you don’t have the proper tax information,” Mighton said.
The latest data supports StatsCan’s optimistic outlook on self-employment released last fall.
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 an October report. “In 2014, there were more than 1.5 million Canadians engaged in unincorporated self-employment activities, accounting for 9% of total employment.”