Flexible Mortgage Solutionsfor Business Owners, Contractors & Entrepreneurs

Yes. Self-employed Canadians qualify for mortgages every day, including prime mortgages at the same rates offered to salaried borrowers. The difference is in how your income is documented. Where a salaried employee provides a letter of employment and pay stubs, you may provide T1 Generals, Notices of Assessment, business financial statements, or bank statements depending on the lender and program.

Most prime lenders prefer to see two years of self-employment history, supported by two years of tax filings. If you have been in business for less than two years, alternative and Business-for-Self programs may still be available, particularly if you have relevant experience in the same field or can show strong recent revenue.

Banks typically qualify you on the taxable income reported on your tax return, not on your gross business revenue. Because many business owners legally reduce taxable income through expenses and tax planning, the figure a bank sees can be far lower than what you actually earn. We work with lenders that assess self-employed income differently, using gross-ups, retained earnings, or bank statement programs.

It depends on the lender and program. Commonly accepted documents include the last two years of T1 Generals and Notices of Assessment, accountant-prepared financial statements, corporate tax returns, business bank statements, articles of incorporation, and a business licence or HST registration. We will confirm exactly which documents your file needs before you apply.

Not necessarily. If you qualify with a prime lender using traditional income documents, you receive the same rates as any other borrower. Rates are typically higher only when your file requires an alternative or private lender, and even then the goal is usually a short term that moves you back to prime financing at renewal.

A Business-for-Self program is designed for borrowers whose reported taxable income does not reflect their true earning capacity. Instead of relying only on tax returns, the lender considers business cash flow, bank deposits, or a stated income supported by supporting documentation. These programs generally require a stronger down payment and credit profile.

Some lenders will consider retained earnings held inside an incorporated business as part of your qualifying income, provided the company is financially healthy and you have sufficient ownership. This is one of the more useful options for incorporated business owners who leave profit inside the company for tax reasons.

If you qualify with traditional income documentation, the standard minimums apply, which can be as little as five percent on the first $500,000 of the purchase price. If your file uses an alternative or stated income program, expect a larger down payment, commonly twenty percent or more depending on the lender and the strength of the application.