Self-Employed Mortgages
How self-employed Canadians actually get approved — beyond what the tax returns show.
Why traditional underwriting fails self-employed borrowers
Most self-employed Canadians legitimately minimize tax by expensing every legitimate deduction. The result: a Line 150 number that understates real earnings — sometimes by 50% or more. Standard A-lender underwriting can't see past that number.
Stated-income programs at A-lenders
Several Canadian A-lenders offer stated-income programs specifically for self-employed: typically 2 years of business registration, strong credit, and 20% minimum down. Rates are within 0.10–0.25% of standard A-lender pricing — far better than B-lender alternatives.
Bank-statement programs
Alternative B-lenders qualify on 6–12 months of business bank statements. Lenders apply a 'cash-flow factor' (typically 50%) to deposits to establish qualifying income. Useful when stated-income at A-lenders isn't quite enough.
Incorporated borrowers and salary vs dividends
If you pay yourself salary, qualification is straightforward (T4s work like any employee). If you pay yourself dividends, lenders gross up by a factor (often 1.25x) to account for tax treatment. Some specialty lenders look through to corporate retained earnings, dramatically expanding qualifying power.
Documentation checklist
Have ready: 2 years T1 generals with all schedules, 2 years Notices of Assessment, 6–12 months business bank statements, articles of incorporation (if applicable), and a current accountant's letter confirming your business is in good standing.
Have questions about your situation?
Every mortgage file has its own story. A 15-minute call with Jay is enough to know your real options.