Mortgages for self-employed Canadians
Non-traditional income shouldn't stand between you and a home. We specialize in matching self-employed borrowers with lenders who understand how your income really works.
Get pre-approved →How does a self-employed person qualify for a mortgage in Canada?
Self-employed borrowers qualify the same way employees do - by proving income, credit, and down payment - but the documents look different. Instead of a T4, lenders review 2 years of NOAs and T1 Generals, business financial statements, and bank deposits. If your declared net income is too low to qualify with an A lender because of legitimate business write-offs, stated-income, gross-up, or B-lender programs can bridge the gap.
- Traditional lenders average 2 years of net income (line 150) from your Notice of Assessments, sometimes with a gross-up for write-offs.
- Stated-income and business-for-self programs let you qualify with bank statements and an accountant's letter instead of full NOAs.
- Down payments typically range from 5-10% (fully documented) up to 20-35% (alternative or private lending).
- B lenders and private lenders offer flexible income and credit criteria at a somewhat higher rate.
2.9M
Self-employed Canadians
15%
Of the workforce
10%+
Typical min. down (stated income)
65+
Lenders in our network
The challenge with self-employed income
Banks typically want 2 years of NOAs showing consistent net income. But self-employed Canadians legitimately write off business expenses to reduce taxable income - which can make your declared income look lower than what you actually take home, making it harder to qualify for a conventional mortgage on paper.
A broker who understands self-employed income can find the lender and program that fits your real financial picture. At 8Twelve, we know which of our 65+ lenders offer stated-income, gross-up, or business-for-self programs for business owners, contractors, and gig workers. Whether you're buying your first home, refinancing, or purchasing a second property, there's a path to approval.
Programs available to self-employed borrowers
Stated income programs
Some lenders allow you to 'state' a reasonable income for your industry without relying solely on your line 150 (net income), supported by bank statements and an accountant's letter.
Business-for-self (BFS) programs
Mortgage products designed for incorporated business owners, contractors, and freelancers, often with 1-2 years of business history required.
Alternative (B) and private lending
When A lenders decline, alternative and private lenders offer more flexible qualification criteria, usually with a higher rate and larger down payment.
How lenders gross up self-employed income
Many A lenders will "gross up" your average line 150 net income by adding back a set percentage - commonly around 15% - to account for legitimate write-offs that lower your taxable income without lowering your real cash flow. This gross-up is a lender policy, not a tax rule, so the exact percentage and eligibility vary by lender.
Worked example: gross-up in action
Dev is an incorporated contractor. His last two NOAs show net income of $58,000 and $62,000.
2-year average income
$60,000
Gross-up at 15%
+$9,000
Qualifying income used
$69,000
That extra $9,000 in qualifying income can meaningfully increase Dev's approved mortgage amount versus using his raw declared income alone. Not all lenders offer a gross-up, and some cap it lower than 15% - a broker will know which of our 65+ lenders apply it and how.
Plan ahead: If you're self-employed and planning to buy within 12-24 months, start preparing now. Keep personal and business accounts separate, file taxes on time every year, and talk to your accountant about the trade-off between minimizing tax and maximizing provable income before your mortgage application. Our Knowledge Hub has more tips for self-employed buyers.
Self-employed mortgage options at a glance
| Program | Down payment | Income proof | Best for |
|---|---|---|---|
| Traditional (full docs) | 5%+ | 2 yrs NOAs, T1 Generals | Strong, fully declared income |
| Stated income / BFS | 10-15% | Accountant letter, bank statements | Income not fully declared |
| Alt-A (B lender) | 15-20% | 12 months bank deposits | Limited documentation, bruised credit |
| Private mortgage | 20-35% | Equity-focused | Complex income or credit challenges |
Documents you'll typically need
- • 2 years of T1 Generals (1 year for some programs)
- • 2 years of Notice of Assessments (NOAs)
- • 6-12 months of business and personal bank statements
- • Business registration, articles of incorporation, or business license
- • Accountant's letter confirming income and business standing (some programs)
- • Minimum 10-20%+ down payment, depending on program
- • Reasonable credit score (typically 600+ for most programs)
- • Proof HST/GST and income tax remittances are current
Not sure what you qualify for? Use our mortgage affordability calculator to estimate your buying power, or start your application for a free consultation.
Frequently asked questions
What self-employed borrowers ask us most often.
Can self-employed people get a mortgage in Canada?
Yes. Self-employed Canadians can qualify for a mortgage through traditional (A) lenders using full income documentation, through stated-income or business-for-self programs, or through alternative (B) and private lenders. The right path depends on how much of your income is verifiable on paper versus what you actually earn.
What documents do self-employed borrowers need for a mortgage?
Typically, 2 years of Notice of Assessments (NOAs), 2 years of T1 Generals, business financial statements or a business license/articles of incorporation, 6-12 months of business and personal bank statements, and proof that HST/GST and income tax are paid and up to date.
How do lenders calculate income for self-employed applicants?
Traditional lenders average your last two years of line 150 (net income) from your NOAs, sometimes 'grossing up' that number by adding back a percentage (commonly 15%) to account for legitimate business write-offs that lower taxable income. Stated-income and alternative lenders instead assess a reasonable income for your industry and business, supported by bank deposits and an accountant's letter.
What down payment do self-employed borrowers need?
If you can fully document your income (2 years of NOAs showing sufficient net income), you may qualify with as little as 5-10% down through a traditional insured mortgage. Stated-income and BFS programs typically require 10-20% down, and alternative or private lenders often require 20-35% down.
Do I need 2 years of self-employment to qualify for a mortgage?
Most A lenders want at least 2 years of self-employment history and 2 years of NOAs. Some alternative lenders and stated-income programs will consider applicants with 1 year of history, particularly if you have relevant experience in the same field as an employee beforehand, or a large down payment.
What credit score does a self-employed borrower need?
Most A lenders and stated-income programs look for a minimum credit score around 620-680. B lenders and private lenders can work with lower scores, sometimes in the 500s-600s, but usually require a larger down payment or higher rate to offset the added risk.
Will writing off business expenses hurt my mortgage application?
It can reduce the net income lenders see on your tax returns, since deductions lower your line 150 income even though your actual cash flow may be strong. This is exactly what stated-income and gross-up programs are designed to address - talk to a broker before your next tax filing if you're planning to buy within 1-2 years.
What's the difference between an A lender and a B lender for self-employed borrowers?
A lenders (banks and monoline lenders) offer the lowest rates but require fully documented, provable income that meets standard debt-service ratios. B lenders (alternative and trust companies) offer more flexible income and credit criteria, often for self-employed or bruised-credit borrowers, at a moderately higher rate and typically a larger down payment.