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Self-Employed & Business Owners

Self-employed? You’re not stuck.

Write-offs are great at tax time but can make your income look small to a bank. Here’s how self-employed Canadians still get approved.

Two ways self-employed Canadians get approved

Path 1 — Traditional (best rates). Use your last 2 years of income from your Notice of Assessment and tax returns. If your reported income supports the mortgage, you get the same sharp rates as everyone else.

Path 2 — Business-for-self programs. If your reported income is low, some lenders accept your bank statements or business income instead, usually with a slightly larger down payment (often 10%+). Rates are a touch higher, but it gets deals done.

Have these ready

  • Last 2 years’ Notice of Assessment (NOA) and T1 tax returns
  • Business financials or business bank statements
  • Proof your business is active: GST/HST number, invoices, or a business licence

Tips that move the needle

  • Don’t over-write-off in the 2 years before you buy — lower taxable income means a smaller mortgage
  • Keep your taxes filed and any amounts owing paid
  • A bigger down payment opens more lenders and better pricing

Buying your first home too?

You can still use the FHSA (up to $8,000/yr, tax-free) and the RRSP Home Buyers’ Plan (up to $60,000). Ask and I’ll help you line them up.

Frequently asked questions

My accountant minimizes my taxable income. Will that hurt me?+

It can. A lower reported income means a smaller mortgage under traditional lending. If you’re planning to buy in the next 1–2 years, it’s worth talking to your accountant and me together beforehand.

How much down payment do business-for-self programs need?+

Often 10% or more, compared to the standard 5% minimum. That’s the trade-off for qualifying on bank statements or business income instead of your NOA.

How long do I need to be self-employed to qualify?+

Most lenders like to see about two years of self-employment history, though some business-for-self programs will consider less with strong compensating factors.

Can I use business income if I’m incorporated?+

Yes. We can look at your salary, dividends, or the company’s retained earnings depending on how you pay yourself. Bring your corporate financials and we’ll find the best fit.

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