As more and more people begin to recognize the appeal of travelling while working, the demand for digital nomad housing has only continued to grow. The number of remote workers and digital nomads is expected to continue rising, too. In fact, it's predicted that remote work will become the new normal in just a few years. With all of these changes in lifestyle and the rise in housing options for digital nomads, can you get a mortgage as a digital nomad? Let's take a look at what you need to know.
You need to prove a stable income.
In the eyes of a lender, you have no assets. You may have a lot of equity, but lenders will look at your income and ability to repay a mortgage as your assets. That's why you'll need to prove a stable income. This will be different case-by-case, but lenders want to see that you have earned a consistent income for at least two years. This will help ensure that you're in a good place financially and can make your mortgage payments.
You need consistency and continuity in your work and income.
In addition to being stable, lenders will also want consistency in your work and income. This is a big one for digital nomads, as it takes time to prove continuity in your career and income when constantly moving. There are ways to prove this, and lenders may look at things like how long you've been working remotely and how long you've been with your current employer. If you're self-employed, you should be able to show that you've been running your business for at least two years. You can prove continuity if you're a contractor by showing how long you've been on a contract.
You should save for a bigger deposit.
If you've been reading up on getting a mortgage, you'll know that getting a mortgage just became a lot more complicated. In fact, recent government changes have made it harder for many people to get a mortgage–even those with excellent credit and steady jobs. One significant change has been a rise in the amount of money you need to save for a down payment on a home. You'll need to consider this if you want to get a mortgage as a digital nomad.
Make sure you get specialist mortgage advice.
If you want to ensure that you're following all the rules and getting the best deal on a mortgage, then you will want to get specialist advice from a mortgage broker knowledgeable in your circumstances. This may come at an extra cost, but it's likely to be worth it. The last thing you want is to get your mortgage application wrong and have your application rejected. That could mean having to start the process all over again. All of these things will make getting a mortgage much more difficult for digital nomads. That said, it's actually a great time to be a digital nomad. There are more lenders and options than ever for people who want to work remotely. So, if you're considering getting a mortgage, you're in a good place. You need to make sure you follow the rules, get specialist advice, and make sure you qualify for a mortgage.
Final Words
While different lifestyles can make obtaining a mortgage more complicated, it isn't impossible. Being cautious with your financial and employment decisions can help you set the framework for getting a mortgage when the time is right.