As a self-employed Canadian, you’re no stranger to the flexibility and independence that come with your career. But when it comes to obtaining a mortgage, you may encounter unique challenges that require specialized solutions. That’s where self-employed mortgages come into play, and as your trusted mortgage broker, we at Concourse Mortgage Group are here to guide you through the process.

In this comprehensive guide, we’ll explore what self-employed mortgages are, how they work, and how you can successfully obtain one.

What Are Self-Employed Mortgages?

Self-employed mortgages are designed to cater to the specific needs of individuals who work for themselves or run their own businesses. Unlike traditionally employed individuals, the income of self-employed individuals can vary from year to year, making it essential to provide different types of documentation when applying for a mortgage.

How Do Self-Employed Mortgages Work?

Obtaining a self-employed mortgage works similarly to a traditional mortgage, but there are some key differences to consider:

  • Documentation: Self-employed individuals are typically required to provide additional documentation to demonstrate their income. This can include tax returns, a notice of assessment from the Canada Revenue Agency (CRA), and other financial documents. The documents required can vary depending on how long you’ve been self employed, whether you’re a sole proprietor, or incorporated.
  • Income Verification: Lenders will assess your income by reviewing your tax returns and financial statements to determine your ability to repay the loan.
  • Interest Rates: The interest rates for self-employed mortgages are typically competitive, and they can vary depending on the lender and your creditworthiness.
  • Mortgage Products: Self-employed borrowers have access to a range of mortgage products, including fixed-rate and variable-rate options, as well as various terms and amortization periods.
  • Mortgage Default Insurance: If your down payment is less than 20% of the property’s purchase price, you may be required to obtain mortgage default insurance, which protects the lender in case of default.

Qualifying for a Self-Employed Mortgage

Qualifying for a self-employed mortgage may require additional steps compared to a traditional mortgage. Here are some key considerations:

1. Financial Documentation:

Providing complete and accurate financial documentation is crucial. Lenders will typically request the following:

  • Tax Returns: Your tax returns, including a notice of assessment from the CRA, provide a clear picture of your income over the past years.
  • Financial Statements: These statements offer insights into your business’s financial health and profitability.
  • Credit Report: A strong credit report can enhance your mortgage application.
  • Bank Statements: Lenders may request recent bank statements to assess your financial stability.

2. Debt-to-Income Ratio:

Lenders will calculate your debt-to-income ratio to ensure you can comfortably manage your mortgage payments. It’s essential to minimize outstanding debts and liabilities.

3. Income Stability:

Demonstrating consistent income and financial stability can boost your chances of approval.

4. Stress Testing:

In recent years, mortgage applicants, including self-employed individuals, have been subject to stress testing to assess their ability to handle higher interest rates. Being prepared for this evaluation is essential.

Working with a Mortgage Broker for Your Self-Employed Mortgage

Navigating the complexities of self-employed mortgages can be challenging, and that’s where a mortgage broker can be a valuable asset. At Concourse Mortgage Group, our team of experienced mortgage professionals can assist you in finding the best self-employed mortgage solution tailored to your financial needs and goals. Here’s how we can help:

  • Access to Multiple Lenders: We have connections with multiple lenders, including big banks, credit unions, and private lenders. This allows us to explore a wide range of mortgage products and interest rates to find the best fit for your unique situation.
  • Expert Guidance: Our mortgage agents provide expert guidance throughout the application process, ensuring that you understand all aspects of your self-employed mortgage.
  • Negotiation Skills: We are skilled negotiators and can help you secure favorable terms, such as competitive interest rates and flexible repayment options.
  • Simplified Process: We will simplify the application process, help you gather the necessary documents, and ensure that your mortgage application is submitted accurately and efficiently.

Types of Self-Employed Mortgages

Self-employed individuals have access to various types of mortgages to suit their unique financial needs. Some common options include:

Stated Income Mortgages:

Stated income mortgages allow self-employed individuals to state their income without providing traditional financial documentation. This is ideal for self employed clients that write down their income, but have strong revenues, retained earnings, etc. This type of mortgage is only available on purchases with a minimum 10% down payment with what we’d call an “A lender”.  It is available in different circumstances with an “alternative” or “B lender”. This would yield higher interest rates, but the savings in taxes can make it well worth it.

Traditional Mortgages:

Traditional mortgages are available to self-employed individuals who can provide comprehensive financial documentation to support their income. Your Concourse Mortgage Broker will help determine what you can qualify for based on your income type.

Private Lenders:

In some cases, self-employed individuals may turn to private lenders when traditional lenders are not an option. Private lenders often have more flexible qualification criteria but may charge higher interest rates.

Monitor Your Credit and Finances

Maintaining a healthy credit score and financial stability is crucial when applying for a self-employed mortgage. Regularly check your credit report, pay bills on time, and minimize outstanding debts to improve your chances of approval and secure competitive interest rates.  Need some tips to make sure you’re checking all the credit boxes? Ask your Concourse Mortgage Broker!

Get Started with Your Self-Employed Mortgage

Are you ready to explore the possibilities of a self-employed mortgage? Contact Concourse Mortgage Group, your trusted mortgage broker, to get started. Our experienced mortgage professionals are here to work with you, evaluate your financial situation, and find the best self-employed mortgage solution to meet your needs. Whether you’re an established entrepreneur or a new business owner, we’re committed to helping you unlock opportunities and achieve your homeownership goals.


Walk-in – come see us at 138 Mahogany Plaza SE. We’re in office from 8:30-4:30 Monday-Friday, unless out meeting clients.