Self-employed Canadians face unique challenges when applying for mortgages. Traditional lenders want T4s and pay stubs you don't have. But don't worry — I specialize in self-employed mortgages and know how to get you approved.
The Self-Employed Challenge
Most self-employed people write off business expenses to minimize taxes. This reduces taxable income — which is what lenders use to qualify you. The result? You might earn $100K but only show $50K on paper.
Documentation You'll Need
- 2 years of Notice of Assessments (NOAs)
- 2 years of T1 Generals with Statement of Business Activities
- Business bank statements (6-12 months)
- GST/HST returns if applicable
- Business license or registration
- Contracts or invoices showing ongoing revenue
Stated Income Programs
Some lenders offer "stated income" mortgages where you declare your income based on industry standards rather than tax returns. This is ideal for business owners who legitimately write off significant expenses. Rates are typically 0.5-1% higher than standard mortgages.
Alternative Solutions
Net worth programs: If you have significant assets, some lenders qualify based on net worth rather than income.
B lenders: More flexible with self-employed borrowers, accepting 12-24 months of bank statements instead of tax returns.
Self-employed and need a mortgage? Call Sam at 647-784-7924 for a customized solution.