Do I Need a Second Job to Get a Mortgage?

December 13, 2023 | Posted by: Ron Chan

Do I Need a Second Job to Get a Mortgage

Nobody wants to get a second job. It certainly doesn’t leave much time to enjoy this little thing called life. However, those who are tired of paying rent (and paying off someone else’s mortgage) don’t want to keep doing so forever, and are willing to do whatever it takes to finally buy a home. If you’re among them, you’re online and asking - do I need a second job to get a mortgage? Not necessarily. In fact, probably not when you choose to work with a mortgage broker. Below is a breakdown of why getting a mortgage may be easier than you think.

How a Broker Can Help You Get a Mortgage Without Having to Get a Second Job to Afford a Home 

Helps Provide a Better Accounting of Income

You may think that you need to get a second job to convince lenders that you’re qualified to get a mortgage. However, if you’re like thousands of another Canadians in your shoes, you may not fully understand what can be counted as income when it comes to a mortgage. A broker can assist with this more robust accounting. Examples of what counts as income towards a mortgage includes the following:

  • Salary/Wages
  • Commissions/Bonuses
  • Tips 
  • Self-Employed Income
  • Rental Income
  • Investment Income 
  • Alimony and/or Child Support 
  • Retirement Pension

View more on what counts as income towards a mortgage.

Can Lower Required Downpayment 

A mortgage broker can determine your eligibility for a number of programs that can effectively reduce your downpayment requirements, including Canada’s First Time Buyers Incentive. In addition, a broker can assist in connecting you to programs such as Canada’s tax-free First Home Savings Account (FHSA) which you can learn more about here. A broker may also help you qualify for a number of grants and credits (for energy efficient home purchases, etc.) that can also help chip away at your downpayment needs. As a result, you may not need to get that second job.

Can Lower Your Mortgage Payments

Beyond the downpayment, you may assume that you need to get a second job to simply cover your expected monthly mortgage payments. Initial calculations may have sparked this assumption. However, you are probably basing these expected payments upon the fixed or variable mortgage rates that you’ve seen advertised/posted on the websites of Canada’s big banks. These marketed rates aren’t the lowest available. The lowest available rates are not published for public view. Instead, they are apportioned to brokers that banks have relationships with. Only buyers who connect to one of these brokers can access these lower rates, which will equate lower monthly payments, and negate the need to get a second gig. And if you still can’t work with the banks’ unadvertised rates, a broker can connect you to alternative private lenders who may be able to offer even more affordable options. 

Do you need to get a second job to get a  mortgage? Hold off on updating your LinkedIn profile until you speak to a mortgage broker. If you are buying a home in the greater Winnipeg area, contact mortgage specialist Ron Chan today for a friendly conversation about your needs.

CALL 204.290.9950

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