If you run your own business, freelance, or contract in Windsor-Essex, you already know the mortgage process was built for T4 employees. Write-offs that make sense at tax time work against you at the application desk. Team Zanet knows how to document self-employed income so it gets approved — across A lenders, B lenders, and private lenders, at no cost to you.
A business grossing $150,000 can show $70,000 on a Notice of Assessment once legitimate expenses are deducted. That is good tax planning and bad mortgage optics — a bank reading the NOA figure as your income will approve far less than your actual earning power supports.
Layer on the rest of it: salary plus dividends plus retained earnings from a corporation, income that swings between a $90,000 year and a $130,000 year, and no T4 to verify any of it. Automated underwriting flags files like this before a human ever opens them. None of it means you can’t get a mortgage. It means presentation matters.
There is no single method that fits every self-employed borrower. The right one depends on how long you have been in business, how the business is structured, and which lender program produces the highest qualifying income from your actual documents. We work through all of the available routes and recommend the one that gets you the most, at the best rate you can access.
Most lenders want to see two years of self-employment history before business income counts toward qualifying. If you have less than that, options narrow but do not close — transitioning from employment in the same field, prior sole proprietor history before you incorporated, a co-borrower with T4 income, or a strong equity position all open doors. We tell you honestly which route is available and what it costs.
Two years of T1s, NOAs, and business financials. If your documented income qualifies, you get the same rate tiers as a salaried borrower. Always the first route we check.
B lender programs add back deductions that don’t touch your real cash flow — home office, vehicle, capital cost allowance — or calculate income from 12 to 24 months of business bank statements.
Insured financing with flexible income treatment for business owners, at no premium surcharge versus a salaried file. Gives you insured rates instead of B lender pricing.
Short history, or a file no A or B lender will take yet? Private lending bridges the gap while your documented history builds. A bridge with an exit, never a destination.
There is no self-employed surcharge at the A lender level. If your documentation qualifies you with a bank or monoline, your rate matches a T4 employee’s — the paperwork is the gate, not the pricing. B lender programs sit moderately above that, with a spread that varies enough by lender and credit profile that shopping the file is the whole game.
The stress test applies either way. You qualify at the higher of your contract rate plus two percent or the regulator’s minimum qualifying rate, calculated against your documented qualifying income — which is exactly why the income presentation strategy comes before the application, not after. We model your qualifying amount up front so you know your real price range before you write an offer.
Documented income that qualifies at a bank or monoline earns the same rate a salaried borrower gets. No penalty for owning your business.
CMHC Self-Employed carries no premium surcharge over a salaried file, and insured rates typically beat conventional uninsured pricing.
When write-offs put confirmed income out of reach, add-backs and bank statement programs qualify you at a modest premium over A rates.
Short history or a complex file. Higher cost, faster approval, and we map your exit before you sign anything.
A, B, and private tiers, compared against your actual documents rather than advertised rates. One bank can only show you one shelf.
Our compensation comes from the lender that funds your mortgage. Independent advice, document strategy, and lender access at no direct cost.
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For a confirmed income application: two years of T1 General returns, two years of Notices of Assessment, and — if you are incorporated — two years of business financial statements including a balance sheet and income statement. You will also need proof the business exists and operates, such as a business licence, articles of incorporation, or GST/HST registration. Stated income and bank statement programs at B lenders vary by lender. We identify exactly which documents your file needs once we understand your structure and history, so you are not producing paperwork after an offer is already in.
Most A lenders and insured programs want to see at least 24 months operating the business or working in the same line of work, and CMHC does offer flexibilities below that threshold. Exceptions also exist for borrowers who moved from employment into the same field, borrowers with a co-applicant earning T4 income, and borrowers with a substantial down payment or equity position. Private lenders are not bound by the same history requirement. If you are under two years, the answer depends on the specifics — worth a conversation rather than an assumption.
If your documented income qualifies you at an A lender, your rate is comparable to a salaried borrower’s — there is no inherent penalty for self-employment at that tier. If your file suits a B lender program instead, expect a moderately higher rate, with the spread depending on the lender, your credit, and your loan-to-value. The number you get from us in a consultation reflects lenders actually willing to approve your file, not a theoretical best case. Current pricing across tiers is on our mortgage rates page.
Common in seasonal trades, consulting, sales, and project work. Most lenders average the two most recent years, and some will weight the more recent year more heavily when it is the stronger one. Where a weak year has a legitimate explanation — a major capital purchase, a parental leave, a one-time disruption — a letter of explanation supported by financial statements gives an underwriter the context to look past it. Building that narrative is part of the file preparation, not an afterthought.
Renewing with your existing lender does not require requalifying. Moving to a new lender as a straight switch — same balance, same remaining amortization — no longer requires stress test requalification either, following the November 2024 rule change. If you increase the balance or extend the amortization, you are back to qualifying at the higher of your contract rate plus two percent or the minimum qualifying rate.