What is a Mortgage For
Commission Earners?

Getting home loans for commission earners and self-employed workers can pose particular challenges.

A commission earner doesn’t typically have the same income stability that salaried workers enjoy. This segment of the Canadian labour force, like a real estate agent, can apply for a regular mortgage to purchase or refinance a home, but the process can be onerous and may result in higher interest rates. Contact us to help you though the process!

Make Your Commission Earnings Count!

Some of the highest earners in Canada work on commission. Commission-based employees are paid a higher rate of commission than those who receive a base plus commission and, typically, they have no income ceiling. Despite this, it may be challenging to obtain a mortgage given that it’s difficult for lenders to assess their complete income.

When applying for a mortgage, it’s important to choose a lender that will accept 100% of your commission income rather than just 50%, as is common practice. In particular, many lenders won’t accept any of your income if there are signs of inconsistency. This can occur simply because you took a holiday or because of a seasonal dip in sales. Our team works with lenders that may accept 100% of your commission income, depending on your circumstances.

Lender Opinions

Lenders are typically cautious of relying on a commission worker’s income as it’s not guaranteed and can fluctuate. Lenders are more comfortable with those who earn a regular monthly salary, but there are many who will work with you to secure a loan. Call GLM Mortgage Group or inquire online to speak to one of our expert mortgage brokers today.

Commission Income Is Reliable

In our experience, commission salespeople can support a loan without posing a higher risk to themselves and the lender. This is based on several factors that some lenders don’t often take into account, including:

• You can work harder and longer to earn more money
• Nothing motivates you to succeed more than the need to meet financial commitments such as a mortgage
• Commissioned-based workers cost a company less compared to salaried employees. As a result, they’re less likely to be made redundant during economic downturns
• When applying for a mortgage, a salesperson is generally confident in their income and ability to make mortgage payments
• Commission remuneration is a viable source of income

Working With The Right Lenders

We have access to numerous banks and non-bank lenders that consider your commission income when assessing your eligibility for approval, and we’re confident we can match you with a mortgage to suit your needs.

How Do Lenders Assess Your Commission Income?

Since lenders assess commission income in different ways, they often require different forms and documentation. Most lenders require at least a two-year record to ensure your income is stable. This isn’t necessarily an adequate or fair way to properly assess your mortgage application, however, so it’s important to contact our team to help you through the necessary steps.