Self-Employed Mortgage Guide: How to Get Approved in 2026

Getting a mortgage when you're self-employed is harder than for salaried employees—but it's absolutely achievable. This guide covers everything self-employed Canadians need to know to get approved in 2026.

Why Self-Employed Mortgages Are Different

The Core Challenge

Lenders verify income from T4 slips for employees. For self-employed borrowers, income verification is more complex:

• Business income fluctuates year to year
• Tax optimization often reduces declared income
• Business expenses lower net income on tax returns
• Multiple income streams complicate the picture

What Lenders See vs. Reality

Trade-off calculation: The tax cost of declaring more income vs. mortgage qualification benefit.

2. Build Business History

• 2+ years in same business improves options significantly
• 3+ years opens even more doors
• Consistent or growing revenue helps

3. Maintain Strong Credit

• 680+ score essential for A lenders
• 720+ opens best rates
• Pay all bills on time
• Keep credit utilization low

4. Save Larger Down Payment

• 20%+ eliminates CMHC requirements
• Reduces rate premiums for B lender options
• Demonstrates financial discipline

FAQ

Q: How long do I need to be self-employed?
A: Most A lenders require 2 years minimum. Some B lenders work with 1 year of history. Under 1 year typically requires private lending.

Q: Can I use a co-signer to help qualify?
A: Yes—a co-signer with strong T4 income can help bridge the qualification gap.

Q: Does my corporation's retained earnings help?
A: Some lenders consider retained earnings as evidence of earning capacity, but it doesn't typically add to qualifying income directly.

Q: I pay myself dividends—how does that work?
A: Dividend income is included, but T5 slips and consistency matter. Lenders want to see predictable dividend payments.

Q: What if my income decreased last year?
A: Income trending is important. Decreasing income may limit you to the lower year's figure or require explanation of circumstances.

What's Next

Self-employed mortgages require the right lender match. Connect with our team—we specialize in self-employed financing and work with lenders who understand business owners.