For entrepreneurs and business owners in Canada, traditional mortgage applications can present unique hurdles, primarily due to how income is structured and reported—often with legitimate business write-offs that reduce net taxable income. Specialized self-employed mortgage programs are designed to address this. Instead of relying solely on net income, these programs allow lenders to consider factors like your business's gross income, cash flow, financial statement history, and overall financial health to more accurately assess your affordability. This tailored approach means your entrepreneurial success isn't a barrier to homeownership; it simply requires the right expertise to navigate the options effectively.
Karen Rasmussen
Sandra Little
How long do I need to have been self-employed to qualify?
Most lenders prefer to see at least two years of established self-employment history, though exceptions can sometimes be made for strong applications with a shorter track record.
Do I need a larger down payment than a traditionally employed person?
Sometimes a larger down payment can be beneficial, but options with as little as 5-10% down may be available, particularly if you can provide strong income verification through alternative means.
Is it significantly harder to get a mortgage if I'm self-employed?
It can present different challenges, but it’s not necessarily harder with the right expertise. Specialized programs and lenders are designed to accommodate self-employed individuals.
What kind of documents will I typically need to provide?
Common documents include business registration, 2-3 years of financial statements, personal and business tax returns (Notices of Assessment), and proof of down payment.
How do lenders view my income if I'm self-employed?
Lenders may use specialized programs that look at gross business income, “add-backs” for certain write-offs, or stated income approaches, rather than just net personal income.