Self-Employed Mortgage

Mortgages for Business Owners & Freelancers

Being self-employed shouldn’t keep you from owning a home. While the mortgage process can be more complex for business owners, there are many options available to help you achieve homeownership.

Challenges Self-Employed Borrowers Face

Traditional lenders often struggle with self-employed applications because:

• Income can vary from year to year
• Tax deductions reduce reported income on paper
• Business and personal finances may be intertwined
• Standard income verification doesn’t apply

Types of Self-Employed Mortgages

Traditional (Full Documentation)

• 2 years of tax returns and financial statements
• Notice of Assessments from CRA
• Best rates available
• Ideal if your reported income supports the mortgage

Stated Income Programs

• Declare your income with business documentation
• Bank statements and contracts as supporting evidence
• Slightly higher rates
• More flexibility in qualification

Bank Statement Programs

• 12-24 months of bank statements
• Income calculated from deposits
• Good for those with strong cash flow
• Alternative documentation accepted

What You’ll Need to Apply

Prepare the following documents:

Business Documentation:

• Business license or articles of incorporation
• 2 years of financial statements (if available)
• Recent business bank statements
• Contracts or proof of ongoing work

Personal Documentation:

• 2 years of T1 Generals with all schedules
• Notice of Assessments from CRA
• Personal bank statements
• Government-issued ID

Property Information:

• Purchase agreement (if buying)
• Property listing or appraisal

Tips for Self-Employed Borrowers

Before You Apply

1. Keep business and personal finances separate
2. Maintain organized financial records
3. Consider your tax strategy - lower reported income means lower mortgage qualification
4. Build a strong credit score
5. Save for a larger down payment (20%+ opens more options)

During the Process

1. Be transparent about your income situation
2. Provide complete documentation upfront
3. Explain your business and income stability
4. Be patient - self-employed applications may take longer

Down Payment Requirements

Success Stories

Many self-employed clients worry they won’t qualify, but with the right approach and documentation, homeownership is achievable. I’ve helped business owners, contractors, freelancers, and gig workers secure mortgages that fit their unique situations.

Let’s Discuss Your Situation

Every self-employed borrower is different. Let’s review your specific situation and find the best mortgage solution for your needs.