Mortgages for Influencers

September 19, 2022 | Posted by: Ron Chan

Mortgages for Influencers

A new profession has arisen with the proliferation of social media and user-generated-content (UGC). That profession has been given the name 'Influencer'. While older generations are quick to dismiss it and not take the title seriously, even micro-influencers (w/10,000–50,000 followers) are able to generate enough monthly revenue to cover a mortgage payment. That said, there is still a stigma amongst those who hold the keys to your future homeownership. As a result, you're online and searching for help when it comes to mortgages for influencers. The good news is that there is one industry that sees the potential for your career role in this new world of ours - mortgage brokers. We have put together some helpful tips to help you secure a home loan despite a lack of understanding (from most big banks) about what it is you do to earn a living. Let's review.

4 Tips to Securing a Home Loan for Someone Who Makes Most of Their Income as a Social Media Influencer 

Hedging Against the Uncertainty via Income Representation

As you know, success of social media activity is highly-susceptible to algorithm updates made by Meta (for Instagram and Facebook), TikTok, and YouTube. For instance, when Meta flipped with switch in the spring of 2022 to favor Reels over traditional Posts on Instagram, a number of influential content creators lost thousands (or more) in monthly revenue. 

This uneasiness over influencer income makes lenders uneasy. They have a hard time seeing your income as consistent, and therefore lose faith that your home loan will be an investment (for them) that will pay dividends in promised interest without the threat of foreclosure. As a result, you'll help your case if you can show that you have other sources of income. This may include products and services that you receive as an Influencer, as those products/services (food, clothing, etc.) may reduce the need for cash outflow. If they count as income as far as the CRA is concerned, it counts as income for lenders too - even if in a roundabout way. Further, while you may wear your title as Influencer with pride, be open taking on other jobs in the year leading into your mortgage pre-approval. You can easily leap-frog your social profile into a regular job for the time being, as long as it doesn't get in the way of your primary bread and butter. Anything that you can do to put lenders' traditionalist minds at ease will go a long way towards securing a home loan. View more on what counts as income.

Qualify for a Self-Employed Mortgage

Technically, you don't even need to use the world 'influencer' when reporting your career status to lenders. An influencer is actually a self-employed marketing professional. Any other self-employed marketing professional would represent themselves as a consultant. There is long list of institutional and private lenders that offer excellent mortgage options for self-employed Canadians. They understand that self-employed individuals have tax write-offs which create significant reductions in declared income. With these mortgage lenders, you will not be required to prove your income. Instead, a reasonable estimate of your annual income will be acceptable. Learn more here.

Ramp Up Reels (etc.) for a Big Downpayment

A lot of the lender uncertainty addressed above will be mitigated with a large downpayment. Seeing as you earn revenue with each successful Reel, Story, or Post (etc.) you'll want to ramp up efforts for a solid six months or so to build up a large downpayment. An Influencer with over 20% downpayment will incite more lender confidence that one that comes in with less that 20%. If it means delaying your mortgage for a few short months to get better terms, it's worth it.

Collaborate with a Mortgage Broker

As an Influencer, you know all about collaborations. But instead of working with a brand in this case, you will want to collaborate with a mortgage broker. A broker will represent you (also a brand) to lenders. A broker will help validate your history and future prospects of consistent income and negotiate better terms. On the latter note, a broker can get you access to lower unadvertised mortgage rates. And if you're a first time buyer, you may qualify for Canada's first time buyer incentive program which can effectively reduce your downpayment requirements. Lastly, if you hit a brick wall with traditional banks, a broker can connect you to alternative private lenders who look beyond credit history (or lack thereof) and instead look at your bigger financial picture - which as a powerful Influencer - can make them very confident in you as a borrower. It all begins with a simple phone call. If you're interested in getting a mortgage in the Greater Winnipeg area, collaborate with mortgage specialist Ron Chan today. Call 204.290.9950 for a friendly noncommittal conversation.

Back to Main Blog Page