What Entrepreneurs Need to Know About Securing a Mortgage
You decided to take a risk and become your own boss. Those of you who have gone through this process, know all about it. You are contributing to the economy, creating jobs, and mastering your craft. So why can it be much harder for you to secure a mortgage?
Well, you went for it! You decided to take a risk and become your own boss. This should be celebrated – and for the most part it is. You are contributing to the economy, creating jobs, and mastering your craft. So why can it be much harder for you to secure a mortgage?
Those of you who have gone through this process, know all about it. It can feel like quite an invasion of privacy – so many documents and information to provide just to prove that you can afford a property. There are a few key points Kendra (from Kendra does Mortgages) has taken the time to share with us on how to help you prepare for this great purchase.
Photography By: Nicole Constante
Qualifying Your Income
One thing I know is that we all love paying less tax, right? So what do we do? Deduct and show less income on our tax returns. Although this is every Accountant’s dream and helps us pay less in tax, it’s not favorable when applying for a mortgage. Many lenders and the mortgage insurers offer a stated income program where we can state the income required for the application and can help with your approval.
Documents that will need to be reviewed are: Articles and Registration of Incorporation as well as the past two years of your: T1 Generals (Accountant prepared, please), Business Financials and Notice of Assessments.
Choosing the Right Down Payment
To participate in this stated income program, you would need a minimum of 10% down to qualify (5% must come from your own sources and 5% can be gifted). With this size of down payment, your mortgage would need to be insured, therefore additional premiums must be paid. If you want to avoid all insurance premiums, a minimum of 35% down would be required – not the traditional 20%. Premiums and your best down payment strategy will be discussed during the application process as everyone is different!
Documents that will need to be reviewed are: 90-day bank statements from all accounts you will be using for your down payment.
Tips for Success
If home ownership is your goal, here are some tips that will help you get there!
Determine how much you want to put down (10%, 35%, more?) and keep it in a separate savings (TFSA, GIC, etc.) account. 90-day history is required and all large deposits must be sourced.
Allocate extra funds for closing costs: your lawyer, insurance, etc. (roughly 1-2% of purchase price) and costs to furnish or renovate your new home.
Keep your credit in check! A minimum of two years’ history is required with at least two active accounts (credit card, loan, phone bill, etc.). Make your payments on time and keep those balances low.
Have an Accountant prepare your taxes and financials. This will keep everything organized, precise and professional.
And of course, talk to a Mortgage Broker (me) ! I will help you strategize and come up with a plan that is tailored to you, plus ensure you are receiving the best advice.
Photography by: Nicole Constante
Do you feel ready to buy a home yet? Trust me, it is achievable!
With the right plan, we can get you there. If you have any questions, do not hesitate to reach out to Kendra at kendradoesmortgages.com. Kendra will be more than happy to walk you through this incredible purchase and provide you with the best options available.
Kendra not only specializes in assisting first time home buyers making that next step to owning a home, but she also has the ability to strategize with clients in growing their real estate portfolio.
#TipsyTuesday post submitted by Kendra Henderson | Kendra Does Mortgages
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How changing your mindset and dropping the diet mentality can positively affect your mental health
Brandy, a nutrition and lifestyle coach is here to discuss a topic on #tipsytuesday that most of us women may struggle with, the diet mentality. It can be hard to stop with all the rules you’ve likely been following for years. Every diet has rules. The question is how do you break free?
Brandy, a nutrition and lifestyle coach is here to discuss a topic on #tipsytuesday that most of us women may struggle with, the diet mentality. It can be hard to stop with all the rules you’ve likely been following for years. Every diet has rules. The question is how do you break free?
Even macro tracking has rules. However, at least with macro tracking, it can teach you one very valuable tool... portion control. I believe that is one of the best benefits of macro tracking.
But how do you let go of labeling food good vs bad? How do you start eating more carbs? How do you stop restricting yourself to then binge on it later? How do you eat before bed? How do put time aside for yourself? How do you stop over-exercising? With so many rules, so now it’s time to start breaking some of these rules.
If you want to feel free, you have to start letting go of the rules.
Breaking the rules can have you feeling shame and guilt, no different than overeating. It will take time but all you need to do is start.
Changing your mindset is a great place to begin. Stop thinking with a scarcity mindset and switch to living and thinking in abundance.
Those who live with a scarcity mindset tend to have rules, restrictions, guilt, and shame. They will think about the past and dwell on a binge or cheat meal. They will seek control and resort to negative self-talk. Procrastination takes over, driven by a self-sabotaging ego that fuels fear and anxiety. Those who live with a scarcity mindset tend to carry a lot of self-doubts and strive for perfection.
Switch to an abundance mindset, you will think more about consistency, flexibility, and sustainability. You will have more compassion for yourself, learn from your experiences and focus on the present. You will begin to let go of what you can not control and lean into the unknown. You will have more self-confidence and acknowledge when mistakes happen. The best part, you give yourself permission to live and to trust yourself.
The next thing you can do is change the language you have around food. There are no good foods and there are no bad foods. There will always be a better choice. Accept that you are not a good person for choosing to eat salad just like you are NOT a bad person for choosing to eat cake.
How silly does it sound... I’m bad about eating cake? Seriously? This does not make you bad. It makes you human. The diet mentality will have you believe you are wrong, bad, unhealthy, nondeserving but this is simply not true.
You have to start listening to your body. You have to start trusting your body.
You have to change your mindset.
You have to start making peace with food. Carbs do not make you fat. OVER indulging, bingeing can lead to weight gain but what leads to overeating, to begin with? That is where you need to start. If you are not eating enough or if you RESTRICT certain food groups you will likely feel more hungry and will desire whatever it is you tell yourself you can’t have until you give in (aka - living with a scarcity mindset).
Change the approach and change your mindset. There is no diet out there that will help you with this. You must be willing to allow yourself to listen to your body. Are you hungry? Are you full? Are you craving food because you restrict certain choices?
There are many myths out there when it comes to nutrition. The first step is to get more educated and you can do this by hiring a nutrition coach. Look for one that has experience along with knowledge. Ask for referrals, jump on a call and ask the coach questions. Don’t fall into marketing gimmicks promising results.
Diet mentality, it did not happen overnight. Neither will a change in your mindset. If you have always been on a diet or tried various ones, you will be stuck in a belief system that taught you nothing except to fear food or lay a foundation for disordered eating mentality.
You can use metrics like macros to help you figure out calories if you like but again, it’s only a method of tracking. It’s no different than journaling food. Both create awareness. From there, change your mindset. Change the language and how you speak to yourself and learn to trust yourself more. It’s about keeping your eyes on your plate and doing what is best for you. Comparisons will break you. What works for that person will not necessarily work for you.
Diets are not the answer to fat loss. YOU are the answer.
You have to be willing to let go, dig deep and put the effort in. Do you realize that you are a bi-product of the choices you’ve made over time? This is usually a result of the diet mentality. Always on a diet, never actually trying to listen to your body and figuring out what is truly best for you.
You will become a healthier human by changing your mindset. You will feel better and by default likely look better too. Mindset is a big piece of the puzzle and the key to helping you drop the diet mentality. Lean into the unknown, trust yourself, be honest with yourself, have an open mind and stop procrastinating.
#TipsyTuesday post submitted by Brandy Schroeder
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TIPSY TUESDAY | The Importance of Contracts for Sponsorship Work - Bud + Bloom
So you’ve started your own business and you’re excited. You’re out there hustling to establish yourself and before you know it, people are excited about your business too!
Photo | Nicole Constante
So you’ve started your own business and you’re excited. You’re out there hustling to establish yourself and before you know it, people are excited about your business too! This is all fantastic until you notice a trend – people are excited enough to try your product or service but have a good understanding of the way the saturated entrepreneurial world works so they’re asking you to provide your expertise for exposure rather than income. At this point you need to do three things.
1) Research the heck out of this client. What kind of exposure are they offering? Will this exposure reach your target market? Is that reach going to create new leads or direct people to your sales funnel?
2) Figure out what it will take to balance the value of your product/service with the value of their exposure.
3) Put it all into a contract.
Like most entrepreneurs, this is a lesson I had to learn the hard way. When I first started up my boutique floral design studio, Bud + Bloom, I was thrilled when I was asked to do a number of centrepieces for a private outdoor event. The client stated their needs and wanted to keep everything local so I foraged for four hours the day before the event, processed all the materials for two, drove out an hour and a half to where the event was being held, and spent another two hours assembling the centrepieces on site. They were big, beautiful, and an excellent addition to my portfolio. They were also taken down about twenty minutes into the event because the weather turned and they had to disassemble everything to put up tents. I was devastated. It was the first time I had put in a day’s work and had nothing to show for it. Including no contract. Why? Because the clients were my friends.
Photo | Corinne Kutz
Read this and re-read this, then re-read it again:
FRIENDS AND FAMILY SHOULD NOT BE EXEMPT FROM CONTRACTS
While it may feel a bit awkward to get into the practice at first, it will get easier with time and you will gain a better understanding of your worth and your targets as a result. Plus, it doesn’t compare to the awkwardness you may feel when it comes to negotiating that contract.
If you do the above steps and hit a wall at step two because you realize the value just does not balance out, you have two options.
Adjust what you’re offering to better match the exposure value.
Ask for more. Whether that’s more social media mentions, tickets to the event so you can network (I always include this), better recognition/signage, accommodation coverage etc.
The awkwardness you may feel is likely stemming from fear and self-doubt because you don’t want to offend anyone, be rejected, or potentially lose a client down the line. However, knowing your worth and being able to assert it does not do that. To the contrary, it makes people take you more seriously because you’re showing that you take yourself and your business seriously.
Photo | Jessica Storm Photography
If you do end up losing them and your requests were reasonable, don’t stress! Instead, ask yourself what the likelihood of them paying for your product/service later on would be? Unfortunately, some people really do want something for nothing. The good news is, those are not your people.
Which brings me to my final point:
only provide sponsorship services once per client
I think this speaks for itself. Within the first year of business, exposure is incredibly valuable. However, if you continue to do things for exchanges other than adequate pay, you are unintentionally defining your value as such.
As far as what that contract actually looks like, or if you have any questions, please feel free to email me at budandbloom.yeg@gmail.com. I truly hope this helps all the business babes out there better realize their worth and better claim their boss title.
Nora Salem
When you’re a busy entrepreneur juggling work and family life, it can be overwhelming to add holiday shopping into the mix.