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Self-employed · Business owners · Owner-operators
Self-employed mortgages in BC
Business owners, truck drivers, contractors and trades often earn well but show a lower income on paper. I work with lenders that understand business income and know how to present your file.
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Who this is for
Mortgages for people who work for themselves
Banks are used to a T4 and a pay stub. When your income comes from a business, the process is different, but it is very doable with the right lender and a well-prepared file.
- Truck drivers and owner-operators, whether you run your own truck or a small fleet
- Contractors and trades: framers, electricians, plumbers, renovators and subcontractors
- Business owners with a sole proprietorship, partnership or corporation
- Commission and gig workers and anyone paid on contract
Documents
What lenders usually ask for
Every lender is a little different, but most will want to see:
- T1 General tax returns for the last two years, including the business statement
- Notices of Assessment (NOAs) from the CRA for the same years, showing no taxes owing
- Proof of the business: business licence, GST/HST registration or articles of incorporation
- Business financial statements if you are incorporated, usually two years prepared by an accountant
- Bank statements, business and personal, often for several months
- Down payment proof, usually 90 days of history for purchases
Please don't send documents through this website. Once we talk, I'll give you a secure way to share them.
Income
How write-offs affect your mortgage
Writing off expenses lowers your tax, but it also lowers the income a lender sees. Many self-employed people are surprised that a good year on the road or on the job shows up as a modest number on line 15000.
Some lenders add back certain non-cash expenses, such as depreciation (capital cost allowance), or look at the business's overall strength. If you are incorporated, they may consider income you have left in the company as well as salary or dividends you paid yourself.
Planning to buy in the next year or two? Talk to your accountant and to me before you file. A small change in how you report income can make a big difference to what you qualify for.
Lender options
Business-for-self programs and alternative lenders
Banks and credit unions are usually the first choice when your declared income supports the mortgage. Some have business-for-self programs for owners who have been in business for a couple of years or more.
Stated income programs let a lender consider a reasonable income for your type of work when your tax returns show less, backed up by bank statements and business history. These usually need a larger down payment or more equity.
Alternative (B) lenders are more flexible on income, newer businesses and past credit issues. Rates and fees are higher, so we treat them as a bridge, with a plan to move you to a regular lender at renewal.
I'll explain the trade-offs honestly so you can pick the option that fits.
Questions
Frequently asked questions
How long do I need to be self-employed to get a mortgage?
Many lenders like to see two years of tax returns for the business. Some will look at less if you worked in the same field before going on your own, or if you have a larger down payment.
I'm a truck driver and write off a lot. Can I still qualify?
Often, yes. Lenders look at more than your net income, including your business history, bank deposits and, with some lenders, add-backs like depreciation. The right lender and a clear file make a big difference.
What is a stated income mortgage?
It is a program where a lender considers a reasonable income for your line of work, supported by bank statements and proof of the business, rather than relying only on the income on your tax return. It usually needs more down payment or equity.
Do I need to be incorporated?
No. Lenders work with sole proprietors, partnerships and corporations. If you are incorporated, they will usually want your company's financial statements as well as your personal tax returns.
Will an alternative lender cost more?
Usually yes. Rates are higher and there are often lender fees, and sometimes a fee for arranging the mortgage. The goal is to use it for a term or two, then move to a bank or credit union once your file is stronger. I'll show you the full cost upfront.
Self-employed and ready to buy or refinance?
Tell me about your work and income and I'll tell you which lenders fit. Service in English, Punjabi and Hindi.