Stated Income Mortgages in Canada: How BFS Programs Actually Work

"Stated income" sounds like you can write any number on a form and a lender will believe you. That's not what it is.

In Canada, stated income — also called BFS (Business For Self) — means the lender accepts an income figure that's reasonable for your industry and experience, backed by bank statements and contracts instead of by your tax return. It exists because most self-employed Canadians underreport on purpose, and lenders know it.

Here's how the programs actually work in 2026.

Who Offers Stated Income

Three insurer-backed programs and a handful of uninsured lenders:

• Sagen Business For Self — up to $1.5M, 10% down minimum, premiums of 4.00–4.75%
• Canada Guaranty Low Doc Advantage — similar structure to Sagen, slightly tighter on industry
• CMHC — no stated income program. CMHC requires verified income.

On the uninsured side: MCAP, First National, Strive, Meridian, and a handful of credit unions will all do stated income with 20%+ down.

Back to the full self-employed guide

What You Have to Prove

You don't prove income line by line. You prove that the income you're stating is reasonable for what you do.

Required:

• 2 years self-employed in the same industry
• Credit score 680+ (most lenders prefer 700+)
• 6–12 months of business bank statements showing consistent deposits
• GST/HST returns matching your declared revenue
• Articles of incorporation or business license
• A reasonable stated income for your role (a self-employed plumber stating $400K is going to get rejected)

The Cost — Premiums and Rates

Insured BFS premiums sit above standard CMHC pricing:

On a $600,000 mortgage with 10% down, the BFS premium is roughly $8,400 more than the standard premium. That gets added to your mortgage balance.

Rates on stated income programs are usually 0.10–0.25% above the best A-lender rate for the same term. Not dramatic, but real.

Who Actually Qualifies

Stated income works for:

• Established sole proprietors with 3+ years of clean GST/HST returns
• Incorporated business owners with strong corporate financials and lower personal income
• Commissioned salespeople with declining T4 commissions but strong contracts
• Real estate agents, consultants, contractors with verifiable industry income

Stated income does not work for:

• New businesses under 2 years old
• Cash businesses with no bank deposit history
• Credit scores under 680
• Anyone with current CRA arrears
• Files where the stated income doesn't match the lifestyle (a stated $80K with $200K in personal credit limits is a red flag)

When you need a B-lender bank statement program instead

Stated Income vs Bank Statement Programs

These get confused. Stated income is an A-lender / insured program with rate-card pricing. Bank statement programs are B-lender products that calculate income from 12 months of business deposits, usually at higher rates and with a 1% lender fee.

Stated income is the goal. Bank statement is the backup.

A Worked Example

Dev runs an incorporated IT consultancy in Calgary. He pays himself $58,000 salary and his T1 shows $58,000. His corporation nets $145,000.

He wants to buy a $720,000 home with 15% down ($108,000).

Traditional A-lender: Qualifies him at $58K income. Maximum mortgage: ~$280K. Deal dead.

Stated income at MCAP BFS: Income stated at $130,000, supported by 2 years T2 returns showing the corporation's net. Mortgage approved at $612K, 5-year fixed at 0.15% above the best A-rate. Insurer premium adds $5,200 to the balance.

Same person. Same business. The right lender just looked at the right number.

How to Position a Stated Income File

The strongest stated income files share four things:

1. Clean credit, deep history — 700+ score, 5+ years of credit history, no missed payments in 24 months
2. Strong reserves — 3–6 months of mortgage payments in savings after closing
3. Industry-appropriate income statement — what you state has to match what your industry pays
4. Cover letter from your broker explaining the business, the income story, and any add-backs

Submit a sloppy file to a stated income lender and you get a decline. Submit a clean file and you get an approval at near-best rates.

Compare today's best self-employed rates

Stress Test Still Applies

Stated income doesn't exempt you from the stress test. You still qualify at the greater of contract rate + 2% or 5.25%. Plan your maximum off the qualifying rate, not the contract rate.