Mortgage for Uber Drivers | What You Need to Know

January 10, 2022 | Posted by: Ron Chan

Mortgage for Uber Drivers Winnipeg Manitoba

On July 7 of 2020, Uber was finally launched in Manitoba. It started off slow, then all of a sudden both demand (passengers) and supply (drivers) revved up. Nowadays you can't drive through Winnipeg's Exchange District without seeing the sticker on the window or sign on the dash of every third vehicle. It has become more than a convenience for Winnipeg commuters and visitors alike, as people have been able to supplement their income thanks to the ride-hailing app's introduction into the city. Some are able to make it their full time gig. 

But despite providing drivers with financial peace of mind during an uncertain economy, there is one unknown that hangs overhead for some. Can you get a mortgage as an Uber driver? In many ways the situation is a lot like any entrepreneur on the hunt for a home, but given the newness of the industry in our city there are some other variables to consider. Let's review.

4 Things to Consider as an Uber or Lyft Driver Getting a Mortgage in Winnipeg Manitoba

Do You Have Other Forms of Income?

Lenders have no issue with a full-time Uber driver in New York where the business has been around for over 10-years. Even those in Ontario have enjoyed consistent income reporting since the ride-hailing service was launched in Canada back in 2014. But in Winnipeg, it's been about 18-months (at press). Assuming that you started driving full-time at that time and have earned a consistent income on the platform throughout, you're still short of the 'magic' 2-years of consistent income that cautious lenders like to see. It doesn't help that that app's success in the city still feels questionable, seeing as it's application is coinciding with a health crisis. Will it provide consistent income in 2022 and beyond? Probably, as tourism returns in full force, but it's still a question mark in the eyes of lenders. As a result, we encourage you to count all other sources of income towards your mortgage. As an Uber or Lyft driver in Winnipeg, everything helps. Please reference our guide for what counts as income towards your mortgage.

There Are First-Time Buyer Incentive Programs to Help

While consideration #1 above may or may not have provided the confidence that you were hoping for, there is certainly a lot to get excited about if you're a first time home buyer. When you connect to a professional mortgage broker, you will get easier access to first time buyer incentive programs that exist in Canada. These programs may effectively reduce your downpayment requirements. You may also qualify for RRSP home buyer plans, first-time buyer tax credits, new housing rebates, and even green home programs. View the complete list of these new buyer incentives here. If you qualify for any of these programs, lenders who are uncertain about your full-time job as an Uber driver will be more likely to provide the home loan. 

There Are Other Home Loan Options

Big banks look very closely at your credit history and last two-years of employment, yet neglect to consider other financial status markers. You may be golden in the latter area, but they are often too narrow in focus to see it. Fret not, as you can still be rewarded (with a home loan) for your entrepreneurial spirit and foray into the ride-hailing industry. Home loans can be secured by alternative private lenders, who look at the 'big picture' when it comes to your finances and income prospects. The challenge, is finding out who these lenders are and getting access to them. As an Uber-driver in Winnipeg, you're in luck, as Ron Chan can get you access to these alternative lenders (if needed) and other home financing options.

Connect to a Mortgage Broker for Help

As we've addressed above, cautious lenders remain uncertain about the consistent income prospects of a full-time Uber driver in this new (to Winnipeg) industry. Their trepidation can be significantly eased when you work with a mortgage broker. A broker lays the foundation for your approach. A broker can help with mortgage calculations, pre-approvals, paperwork, and serve as your representative in negotiations with all parties involved. A broker can get you access not only to the aforementioned first-time buyer programs, but to lower unadvertised rates. When a broker gets done negotiating with lenders (banks, credit unions, or private) they may even fight to secure you as a valued investment. Confirm your ride to a home loan today by contacting Ron Chan at 204.290.9950.

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