13.2% of Canadians were self-employed in one way or another in 2023. Many self-employed individuals have difficulty qualifying for mortgage financing due to the lack of income verification or income inconsistency.

Even as your own boss, homeownership is within reach. We’ll guide you through the ins and outs of obtaining a self-employed mortgage, helping you understand the qualification criteria, providing the best loan options, and ensuring you have all the necessary documentation for a smooth approval process.

1. Prove your income: A self-employed individual must demonstrate stable and consistent income. This can be done by providing tax returns, financial statements, and possibly a Notice of Assessment (NOA) from the Canada Revenue Agency (CRA).
2. Maintain good credit: A strong credit score is essential for securing a mortgage. Ensure that your credit report is in good shape and address any issues that might negatively impact your credit score.
3. Save for a larger down payment: Putting down a larger initial payment can improve your chances of getting approved for a self-employed mortgage. It also reduces the amount you need to borrow, which can be beneficial for self-employed individuals. Putting down at least 20% can help you avoid Canada Mortgage and Housing Corporation (CMHC) insurance and the extra costs associated with it. For example, on a $500,000 home, a 20% down payment of $100,000 can eliminate the need for CMHC insurance, lowering your monthly payments and the total interest you pay over the life of the loan.
4. Work with a knowledgeable mortgage broker: It’s important to work with a mortgage broker who understands the unique challenges faced by the self-employed.
5. Be prepared for additional documentation: To confirm at least two years of self-employment history, you must provide additional documentation. This can be in the form of audited financial statements for the last two years, the last two years of NOAs from Revenue Canada for the borrower(s), or the last two years of T1 Generals with a statement of business activities attached for a minimum of the last two years.
6. Consider alternative mortgage lenders: Some traditional banks may have stricter requirements for self-employed individuals. Exploring alternative lenders who specialize in self-employed mortgages can provide more options and flexibility.

We specialize in mortgages for self-employed individuals, as traditional banks often find them challenging due to insufficient income proof or documentation. We will tailor your application to ensure that lenders approve your financing with competitive rates and terms. Apply now or reach out for more details.