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Getting a Mortgage When You’re Self-Employed: What Are Your Options?

  • Writer: Leigh Ann Stapleton
    Leigh Ann Stapleton
  • May 5
  • 3 min read
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Being your own boss comes with plenty of perks—but when it’s time to apply for a mortgage, self-employment can present a few unique challenges. The good news? There are still great financing options available in Canada. With the right preparation and guidance, you can absolutely qualify for a mortgage that fits your goals.


Here’s what self-employed buyers need to know.


Traditional Mortgages: Yes, They’re Still Possible

Many self-employed Canadians qualify for conventional mortgages, just like salaried workers. The key is showing that your income is stable, verifiable, and sufficient to carry the loan.


Most lenders will ask for:

  • Two years of personal tax returns (T1 Generals)

  • CRA Notices of Assessment (to confirm no taxes owing)

  • T2125 Statement of Business or Professional Activities

  • Business financial statements

  • Proof of business registration or incorporation


If you’ve been running your business for at least two years and have consistent income, you’re in a good position.


Salary Isn’t the Only Thing Lenders Look At

If you pay yourself a modest salary but your business is profitable, some lenders will look beyond just your T4 or draw. Depending on the lender and your structure, they may also consider:

  • Net business income

  • Retained earnings

  • Depreciation add-backs and other non-cash expenses


This can be especially helpful for incorporated business owners who leave money in the company for tax efficiency.


Alternative Mortgage Options for Complex Income

If your income isn’t straightforward—because of business write-offs or variable earnings, alternative lenders (also called B-lenders) may offer more flexibility. These lenders may rely on:

  • Bank statements (to verify deposits)

  • Contracts or invoices

  • Business account activity


These options often require:

  • A larger down payment (typically 10 to 20 percent)

  • A slightly higher interest rate

  • Proof that the business is healthy, even if your tax returns show lower income


While the terms can be a bit stricter, they’re often a lifeline for business owners and freelancers.


Work With a Mortgage Broker

A licensed Canadian mortgage broker can:

  • Help you understand which lenders are self-employed-friendly

  • Present your case effectively using the right documents

  • Shop around to find the best fit for your financial situation


They’ll also know which lenders accept business income structures, and what kind of documentation each one prefers.


How to Strengthen Your Application

To improve your chances of mortgage approval:

  • Keep your business and personal finances separate

  • Maintain up-to-date financial records and file taxes on time

  • Pay down existing debt to lower your debt-to-income ratio

  • Build and monitor your credit score

  • Save for a larger down payment if possible


The Bottom Line

Being self-employed doesn’t mean you can’t get a mortgage in Canada—it just means you may need to provide more documentation and work with the right professionals. From using business income to finding flexible lenders, there are multiple ways to finance your dream home as an entrepreneur.


Need help navigating your options?

I work closely with mortgage professionals who specialize in helping self-employed buyers. If you’d like a trusted referral, just reach out—I’d be happy to connect you.


Disclaimer: I’m not a mortgage professional. This information is for general guidance only. If you’re self-employed and considering a mortgage, I strongly recommend speaking with a licensed mortgage expert. I’d be happy to connect you with someone I trust who specializes in self-employed mortgages.


Leigh Ann Stapleton

The Property Perfectionist

Home Improvement Expert & REALTOR® at EXIT Realty Strategies


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