How to Get a Mortgage When You’re Self‑Employed in Canada
Being self-employed in Canada comes with a lot of freedom—but when it’s time to apply for a mortgage, that freedom can sometimes feel like a disadvantage. If you’re running your own business, freelancing, or earning income from contracts or side hustles, you may already know that lenders don’t always see your income the way you do.
But here’s the truth: getting approved for a mortgage as a self-employed person isn’t impossible. You just need to know how to prepare, what lenders are really looking for, and how to navigate the process strategically. That’s what we’ll unpack in this post.
Why Is It Harder for the Self-Employed?
It comes down to income verification.
Traditional employees provide a T4 slip and a job letter—simple. But self-employed borrowers usually deduct expenses to reduce taxable income, which can make your net income appear lower on paper. This affects how much lenders are willing to approve.
In short: even if your business is thriving, your tax returns might not tell the full story.
What Do Lenders Want to See?
Lenders want one thing—confidence that you can repay the loan. To get that, they typically ask for:
- Two years of personal tax returns (T1 Generals)
- Two years of Notice of Assessments (NOAs)
- Proof that your taxes are up to date (no large CRA debts)
- Business financial statements or articles of incorporation (if incorporated)
Some lenders also want to see a business license, recent bank statements, and proof of consistent income.
If your income is seasonal or fluctuates, you’ll need to show a stable average over time. Some lenders will take the lower of the two-year average, while others may consider your most recent year if income is rising steadily.
Options That Work for Self-Employed Buyers
There are more mortgage solutions available now than ever before, including:
1. Stated Income Programs
These are ideal if your declared income doesn’t reflect your real earning power. Lenders use reasonable estimates based on your business type, bank deposits, and industry.
2. Alternative or B-Lenders
These lenders are more flexible with documentation and income proof. They charge slightly higher rates but provide access when traditional lenders say no.
3. Low-Doc and No-Doc Mortgages
In rare cases, lenders will offer approvals based on equity or large down payments, without traditional income verification. These are usually available through private lenders.
4. Co-Signers or Joint Mortgages
If you can’t qualify based on your income alone, a co-signer with stable employment can help improve your chances of approval.
Pro Tips to Improve Your Approval Odds
- Keep your financials clean: Avoid mixing personal and business expenses. Keep your bookkeeping consistent and up to date.
- Avoid major deductions: If you’re planning to apply for a mortgage, reduce your write-offs for at least two years before applying.
- Pay your taxes: Any outstanding balance with the CRA will hurt your approval chances.
- Work with a broker: Not all lenders treat self-employed borrowers the same. A broker can help position your application to match the right lender.
Why Work with Anton Mortgage
At Anton Mortgage, we’ve helped countless self-employed clients—freelancers, contractors, consultants, small business owners—get approved, even when banks said no.
- We work with over 60 lenders, including major banks, credit unions, and B-lenders.
- We know which lenders will accept your real income story—not just what’s on your tax return.
- We handle the paperwork, prep your file, and communicate with lenders on your behalf.
More importantly, we’ll be honest with you. If you need to wait a few months to get things in order, we’ll help you build a plan to get there.
If you’re self-employed and want to explore your mortgage options with someone who gets it, reach out to us here.