You run a business. Your lender should get it.
Write-offs that keep your tax bill low can make your income look small to a bank. Mitch knows which lenders look at the full picture and how to present your file so it gets approved.
What happens next.
Hover a step. Every file is different, but this is the path.
Review your documents
We look at your tax returns, business financials and bank statements to see how lenders will read your income.
Pick the right lender type
Strong declared income can go to a major lender. Heavier write-offs or a newer business may suit a B-lender program.
Package the file
Mitch presents your income clearly, explains anything unusual, and answers lender questions before they become problems.
Approve and plan ahead
If you start with a B-lender, we map out what it takes to move to a lower-cost lender at renewal.
Is this you?
- Incorporated business owners
- Sole proprietors and freelancers
- Contractors and tradespeople
- Commission-based salespeople and realtors
- Anyone recently self-employed after years in the same field
How we can structure it.
Traditional income approval
Use your two-year average from T1 Generals and Notices of Assessment. Usually the lowest cost if your declared income is enough.
Insured self-employed programs
Some insurers offer programs for self-employed borrowers with less than 20% down, subject to strict criteria.
Stated income (B-lender)
Lenders accept a reasonable stated income backed by business history and bank statements. Usually needs a larger down payment.
Private lending
Short-term financing based mostly on equity, for situations other lenders won't take on. Paired with a clear exit plan.
How much house can I afford?
Uses the same debt-service ratios and stress test lenders use, so the number is realistic.
- Mortgage amount
- Qualifying (stress test) rate
- Amortization used
- Payment at example rate
Estimate only, using Canadian semi-annual compounding. Example rates are for math, not an offer. Your actual rate and APR depend on your approval.
What you'll need
- Last two years of T1 Generals
- Last two years of Notices of Assessment
- Business registration or articles of incorporation
- Corporate financial statements, if incorporated
- Six to twelve months of business bank statements
- Proof that personal taxes are paid up to date
- Down payment statements
Don't have it all yet? Start anyway. We'll tell you exactly what's missing.
Worth knowing first
- Lenders generally want to see about two years of self-employment history. Newer businesses have fewer options.
- Owing CRA money can stop an approval. Get balances paid or on a payment plan before you apply.
- Stated income and B-lender programs cost more and often need a larger down payment. Plan an exit to a lower-cost lender.
Good questions.
How long do I need to be self-employed?
Most lenders want about two years. If you were in the same line of work as an employee before, some lenders may consider a shorter history.
My write-offs make my income look low. What can I do?
Some lenders add back certain items or use stated income programs. Mitch will compare what each path costs.
Can I use business bank statements?
Some B-lender programs use bank statements to support stated income. Major lenders usually rely on tax returns.
Is it more expensive to be self-employed?
Not always. If your declared income qualifies, you can get the same products as an employee. Costs go up mainly with B-lender or private options.
Learn before you call.
See your options in 60 seconds.
No credit check. No obligation. Then book a free call with Mitch.
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