Why Self-Employed Individuals Should Avoid the Bank for Mortgages

Josh Perez • September 12, 2023

If you're self-employed and in the market for a mortgage, it may seem like a natural step to head straight to your bank. After all, it's a familiar place where you handle your finances, right? However, this may not be the best approach for self-employed individuals, and there are two significant reasons why: people and products.

One of the biggest benefits of being a business owner is not sucking out every dollar personally and paying at the highest marginal tax levels, but keeping it within the corporate structure, pay less tax, and use those extra dollars to grow the business sustainably.

If you're self-employed and in the market for a mortgage, it may seem like a natural step to head straight to your bank. After all, it's a familiar place where you handle your finances, right? However, this may not be the best approach for self-employed individuals, and there are two significant reasons why: people and products.


1. The People Problem:

Over the years, there has been a troubling trend in banks - a growing number of employees with diminishing experience in financial planning. This can be a real issue for self-employed individuals seeking a mortgage. When you walk into a bank, you want to be heard and understood, especially when it comes to qualifying for a mortgage.


Unfortunately, the lack of expertise in many bank employees often means that not enough questions are asked. These questions are crucial for understanding how your business operates and why it operates the way it does. Without this understanding, it's challenging to secure the right mortgage tailored to your unique financial situation.


2. The Product Predicament:

Another issue with going directly to the bank for a mortgage is the products they typically offer. Most bank products rely heavily on what a business owner takes out personally from their business as a basis for qualification. In many cases, this approach isn't the most prudent for self-employed individuals.

Think about it – as a business owner, you might want to reinvest a significant portion of your profits back into your business to foster growth and increased profitability. Bank products, however, often penalize this approach because they focus on personal income rather than the financial health of your business as a whole.

3. The Mortgage Broker Solution:

So, what's the alternative for self-employed individuals looking for a mortgage that suits their unique financial situation and goals? Consider working with a mortgage broker.

Mortgage brokers collaborate with a wide range of lenders who take a more common-sense approach to self-employed borrowers. They understand that assessing financial health should encompass the entire business, not just personal income. This means they are more likely to do a deep dive into your overall business financials, working with you to find a mortgage that aligns with your needs and aspirations.

One of the most significant advantages of being a business owner is the ability to keep profits within your corporate structure. This strategy allows you to pay less tax and use those extra dollars to grow your business sustainably. Bank products often don't cater to this essential aspect of business ownership.


In conclusion, if you're self-employed and looking for a mortgage, it's crucial to consider alternatives to the traditional bank route. Mortgage brokers offer expertise and a broader range of mortgage products that better accommodate the needs and financial strategies of self-employed individuals. Don't let a lack of understanding or an ill-fitting product hinder your path to homeownership or investment. Explore your options and find a mortgage solution that aligns with your unique financial journey.


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Deposit Lending And Bridge Financing

By Josh Perez • April 30, 2025
Let’s say you have a home that you’ve outgrown; it’s time to make a move to something better suited to your needs and lifestyle. You have no desire to keep two properties, so selling your existing home and moving into something new (to you) is the best idea. Ideally, when planning out how that looks, most people want to take possession of the new house before moving out of the old one. Not only does this make moving your stuff more manageable, but it also allows you to make the new home a little more “you” by painting or completing some minor renovations before moving in. But what if you need the money from the sale of your existing home to come up with the downpayment for your next home? This situation is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing property and use it for the downpayment on the property you are buying. So now let’s also say that it’s a very competitive housing market where you’re looking to buy. Chances are you’ll want to make the best offer you can and include a significant deposit. If you don’t have immediate access to the cash in your bank account, but you do have equity in your home, a deposit loan allows you to make a very strong offer when negotiating the terms of purchasing your new home. Now, to secure bridge financing and/or a deposit loan, you must have a firm sale on your existing home. If you don’t have a firm sale on your home, you won’t get the bridge financing or deposit loan because there is no concrete way for a lender to calculate how much equity you have available. A firm sale is the key to securing bridge financing and a deposit loan. So if you’d like to know more about bridge financing, deposit loans, or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you.

Should You Double Down or Diversify in Real Estate Investing?

By Josh Perez • April 30, 2025
If you’re crushing it with duplex conversions, Airbnb rentals, flips, or student housing, you might be wondering: Should I double down on what’s working—or start learning about other strategies to diversify my real estate portfolio? It’s a great question—and one I get asked all the time. My typical advice? Double down on your strengths, outsource your weaknesses. If you’ve found a strategy that fits your skills, market, and cash flow goals, it’s smart to build momentum. But in real estate—especially in today’s market—it’s just as important to stay informed and flexible. Why Staying Educated Matters Real estate isn’t static. The rules of the game are constantly changing. Lending practices shift. Local bylaws evolve. What worked flawlessly last year may become less profitable—or even unviable—this year. Here’s what I mean: “If lenders and banks don’t want to lend as much on certain assets—like student rentals or short-term rentals—or they start to clamp down on duplex conversions, that changes your rate of return. That changes the rules of the game.” If your entire strategy depends on leverage (and let’s face it, most real estate investing does), changes in financing can dramatically shift the effectiveness of your current approach. Keep Learning, Stay Adaptable Even if you’re succeeding now, always keep learning. New strategies like BRRRR, rent-to-own, mid-term furnished rentals, or commercial opportunities might offer different advantages in changing markets. You don’t need to master them all, but you do need to understand how they work—and when it might make sense to pivot. Final Thoughts Crushing one niche? Keep going. But don’t ignore the bigger picture. As markets evolve, being aware of shifting rules, lender policies, and local regulations will give you the edge.  At the end of the day, the best investors aren’t just good at one strategy—they’re nimble, informed, and proactive. If you want to chat about how to strengthen your current investments and position yourself for what’s next, let’s connect.