Truck Driver Mortgages
Updated: May 21, 2021
Truck Driver Mortgages - Why is it Complicated?
Did you know, Truck driver mortgages are declined faster than nurses who almost make the same about of income yearly. 5% of Canadian GDP in the year 2011, Truck driver mortgages are rejected more than approved in Ontario Canada today!
Below are the 3 most common issues almost every truck driver has while they are on roads. The one issue which affects them at a very intimate level is not able to get their mortgage applications approved as truck drivers.
- Cars zig zagging in traffic, coming in front of your fully loaded truck on the highways & applying breaks abruptly.
- Cars behind your truck following too closely
- Cars driving in your blind spot especially in bad weather
Like any other industry, Truck drivers work as employees or self-employed aka BFS (Business for Self) as Sole Proprietorship or Incorporated. Mortgages approval for a truck or a taxi driver depends upon how you file taxes i.e. as an employee or self-employed. Recent changes to the lending criterion have to lead lots of truck driver’s mortgage applications to get rejected.
Mortgages for Truck Drivers are very different than your regular mortgages. The Bank’s rules of engagement are different. To make matter worse, not every bank/lender prefers your mortgage business. It’s worth taking time to learn more on Canadian mortgages triad are the 3 critical factors out of many others on basis of which banks/ lenders decide to approve or decline your mortgage application.
9 Critical Questions which dictates the success of Truck driver mortgages
- Are you an employee or self-employed drawing income from your corporation?
- Is your incorporated business at least 2 years old?
- How long have you been in the industry?
- How does your Mortgage DIC (Down Payment, Income & Credit) profile look like?
- What is the annual gross revenue of your corporation?
- What is your personal income on Line 150 / 15000 after deducting all your expenses from your corporations?
- Does your corporation have any retained earnings?
- Do you owe any taxes to Revenue Canada?
- Do you have a cosigner, co-applicant, or a guarantor who can help you with your mortgage?
If you are in the market looking for a mortgage as a truck driver you are encouraged to speak to our Ontario licensed mortgage broker who has experience with Truck driver mortgages serving South Ontario including Brampton, Mississauga, GTA, and surrounding areas.
It is worth noting that lately, mortgages for self-employed overall has become a challenge. Strict mortgage qualification guidelines (mortgage stress test) with COVID 19 pandemic related work loss has further complicated the owner-operator truck drivers mortgage approvals.
The key to success lies in preparing for it in advance, collecting all income related documents, and consulting an independent mortgage broker who has access to alternatives in case, you don’t qualify for a cookie cutter mortgage product with the bank.
We can help owner-operators long and short-term financing goals including any future purchase as a professional truck driver. Gather documents in advance to get qualified for a mortgage. Don’t let low credit score discourage you, we can help you find a viable mortgage solution.