Self-Employed Mortgage Guide Canada: How to Qualify in 2025

Getting a Mortgage When You're Self-Employed

Self-employed Canadians often face unique challenges when applying for mortgages. This guide explains your options.

The Self-Employed Challenge

Self-employed individuals often:

• Write off significant business expenses
• Show lower net income on tax returns
• Have variable income year-over-year

Types of Self-Employed Mortgage Programs

1. Traditional Documentation (A Lender)

Requirements:

• 2+ years self-employment
• 2 years tax returns (NOAs)
• Financial statements

Rates: Best available

2. Stated Income (B Lender)

Requirements:

• Business license/registration
• Bank statements (6-12 months)
• Reasonable income declaration

Rates: 0.5-2% higher

3. Alternative Documentation

Accepted Documents:

• Business bank statements
• Contracts and invoices
• Accountant letters

Tips for Self-Employed Approval

1. Maintain separate business accounts - Clean paper trail
2. Document everything - Contracts, deposits, receivables
3. Consider incorporation - Adds credibility
4. Work with experienced broker - Knows lender requirements

Frequently Asked Questions

How long do I need to be self-employed?

2 years minimum for most lenders, some accept 1 year with strong file.

Do I need higher down payment as self-employed?

Not necessarily, but 20%+ opens more options and better rates.

Can I qualify with just one year of tax returns?

Some lenders accept this with strong income and business history.

Contact us for self-employed mortgage expertise.