Self-Employed

Mortgages for self-employed Canadians

Non-traditional income shouldn't stand between you and a home. We match self-employed borrowers with lenders who understand how business income really works.

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How does a self-employed person qualify for a mortgage in Canada?

Self-employed borrowers qualify the same way employees do, by proving income, credit, and down payment, but the documents look different. Instead of a T4, lenders review 2 years of NOAs and T1 Generals, business financial statements, and bank deposits. If your declared net income is too low to qualify with an A lender because of legitimate business write-offs, stated-income, gross-up, or B-lender programs can bridge the gap.

Traditional lenders average 2 years of net income (line 15000) from your Notices of Assessment, sometimes with a gross-up for write-offs.
Stated-income and business-for-self programs let you qualify with bank statements and an accountant's letter instead of relying only on NOAs.
Down payments typically range from 5-10% (fully documented) up to 20-35% (alternative or private lending).
B lenders and private lenders offer flexible income and credit criteria at a somewhat higher rate.

2 yrs

NOAs most A lenders want

15%

Common gross-up on net income

10%+

Typical min. down (stated income)

65+

Lenders in our network

The challenge with self-employed income

Banks typically want 2 years of NOAs showing consistent net income. But self-employed Canadians legitimately write off business expenses to reduce taxable income, which can make your declared income look lower than what you actually take home and make it harder to qualify for a conventional mortgage on paper.

A broker who understands self-employed income can find the lender and program that fits your real financial picture. We know which lenders offer stated-income, gross-up, or business-for-self programs for business owners, contractors, and gig workers. The same documents apply if you're buying your first home as a self-employed buyer, refinancing a mortgage you already have, or purchasing a cottage or rental property.

Programs available to self-employed borrowers

Stated income programs

Some lenders allow you to 'state' a reasonable income for your industry without relying solely on your line 15000 (net income, formerly line 150), supported by bank statements and an accountant's letter.

Business-for-self (BFS) programs

Mortgage products designed for incorporated business owners, contractors, and freelancers, often with 1-2 years of business history required.

Alternative (B) and private lending

When A lenders decline, alternative and private lenders offer more flexible qualification criteria, usually with a higher rate and larger down payment.

How lenders gross up self-employed income

Many A lenders will "gross up" your average line 15000 net income by adding back a set percentage, commonly around 15%, to account for legitimate write-offs that lower your taxable income without lowering your real cash flow. This gross-up is a lender policy, not a tax rule, so the exact percentage and eligibility vary by lender.

Worked example: gross-up in action (illustrative)

Dev is an incorporated contractor. His last two NOAs show net income of $58,000 and $62,000.

2-year average income

$60,000

Gross-up at 15%

+$9,000

Qualifying income used

$69,000

That extra $9,000 in qualifying income can meaningfully increase the mortgage Dev qualifies for versus using his raw declared income alone. Not all lenders offer a gross-up, and some cap it lower than 15%. A broker will know which lenders apply it and how. Run your own figures through the affordability calculator using your grossed-up income to see the difference.

Plan ahead: If you're self-employed and planning to buy within 12-24 months, start preparing now. Keep personal and business accounts separate, file taxes on time every year, and talk to your accountant about the trade-off between minimizing tax and maximizing provable income before your mortgage application. Our Knowledge Hub has more tips for self-employed buyers.

Self-employed mortgage options at a glance

Program	Down payment	Income proof	Best for
Traditional (full docs)	5%+	2 yrs NOAs, T1 Generals	Strong, fully declared income
Stated income / BFS	10-15%	Accountant letter, bank statements	Income not fully declared
Alt-A (B lender)	15-20%	12 months bank deposits	Limited documentation, bruised credit
Private mortgage	20-35%	Equity-focused	Complex income or credit challenges

How the application works

1
Pull your tax paperwork together
Gather two years of T1 Generals and Notices of Assessment, plus business financial statements and proof that personal tax and HST/GST are paid up.
2
Review your income with an agent
We look at your line 15000 income, any add-backs a lender may allow, and your bank deposits to see which lender category fits.
3
Match the program to your file
Fully documented income goes to A lenders; strong deposits with lower declared income may suit a stated-income or B-lender program.
4
Submit and answer lender conditions
The lender reviews the file and may ask for an accountant's letter, extra statements or explanations of large deposits.
5
Close and plan your exit
If you start with a B lender, we plan a move back to an A lender at renewal once two clean years of filed income are on record.

Documents you'll typically need

• 2 years of T1 Generals (1 year for some programs)
• 2 years of Notice of Assessments (NOAs)
• 6-12 months of business and personal bank statements
• Business registration, articles of incorporation, or business licence

• Accountant's letter confirming income and business standing (some programs)
• Minimum 10-20%+ down payment, depending on program
• Reasonable credit score (typically 600+ for most programs)
• Proof HST/GST and income tax remittances are current

Already own a home and want to pull equity out for the business or to clear high-interest debt? See how taking equity out of your home works for self-employed owners.

Frequently asked questions

What self-employed borrowers ask us most often.

Can self-employed people get a mortgage in Canada?

Yes. Self-employed Canadians can qualify for a mortgage through traditional (A) lenders using full income documentation, through stated-income or business-for-self programs, or through alternative (B) and private lenders. The right path depends on how much of your income is verifiable on paper versus what you actually earn.

What documents do self-employed borrowers need for a mortgage?

Typically, 2 years of Notice of Assessments (NOAs), 2 years of T1 Generals, business financial statements or a business licence/articles of incorporation, 6-12 months of business and personal bank statements, and proof that HST/GST and income tax are paid and up to date.

How do lenders calculate income for self-employed applicants?

Traditional lenders average your last two years of line 15000 (net income) from your NOAs, sometimes 'grossing up' that number by adding back a percentage (commonly 15%) to account for legitimate business write-offs that lower taxable income. Stated-income and alternative lenders instead assess a reasonable income for your industry and business, supported by bank deposits and an accountant's letter.

What down payment do self-employed borrowers need?

If you can fully document your income (2 years of NOAs showing sufficient net income), you may qualify with as little as 5-10% down through a traditional insured mortgage. Stated-income and BFS programs typically require 10-20% down, and alternative or private lenders often require 20-35% down.

Do I need 2 years of self-employment to qualify for a mortgage?

Most A lenders want at least 2 years of self-employment history and 2 years of NOAs. Some alternative lenders and stated-income programs will consider applicants with 1 year of history, particularly if you have relevant experience in the same field as an employee beforehand, or a large down payment.

What credit score does a self-employed borrower need?

Most A lenders and stated-income programs look for a minimum credit score around 620-680. B lenders and private lenders can work with lower scores, sometimes in the 500s-600s, but usually require a larger down payment or higher rate to offset the added risk.

Will writing off business expenses hurt my mortgage application?

It can reduce the net income lenders see on your tax returns, since deductions lower your line 15000 income even though your actual cash flow may be strong. This is exactly what stated-income and gross-up programs are designed to address. Talk to a broker before your next tax filing if you're planning to buy within 1-2 years.

What's the difference between an A lender and a B lender for self-employed borrowers?

A lenders (banks and monoline lenders) generally offer lower rates but require fully documented, provable income that meets standard debt-service ratios. B lenders (alternative lenders and trust companies) offer more flexible income and credit criteria, often for self-employed or bruised-credit borrowers, at a moderately higher rate and typically a larger down payment.

Ready to put your business income to work?

Tell us how you earn and what you're buying. An agent will review your file and walk you through the options. Free to apply, no obligation.

Start your self-employed application