Self Employed Mortgage Ontario Canada

Owning a business shouldn’t make getting a mortgage harder.
At DLC Homestead Financial, we specialize in helping self-employed Canadians qualify for the mortgage they deserve — whether you’re purchasing, refinancing, or expanding your property portfolio.

We understand how income works when you run your own business and how lenders view your situation.
Our goal is to help you structure your mortgage application in a way that reflects your real earning power, not just what appears on paper.

Why Use a Mortgage Broker for a Self-Employed Mortgage?

Navigating mortgage financing as a self-employed borrower can feel complicated — different lenders have different requirements, and proving income isn’t always straightforward.

Working with a mortgage broker makes it easier.
We have access to banks, credit unions, and specialty “business-for-self” lenders that understand self-employed income.
This means we can match you to the lender whose policies fit your unique situation — not force you to fit into one bank’s box.

We know which lenders:

• Use gross business revenue or deposits rather than net income
• Allow add-backs for non-cash expenses like depreciation or vehicle costs
• Offer stated-income or alternative verification programs for small business owners

Our job is to find the lender that will give you the best overall approval — not just the lowest advertised rate.

How Lenders Assess Self-Employed Income

Most lenders want to see a two-year history of consistent income. But how that income is reviewed depends on your documentation.

A lenders (banks and monolines):

• Use your personal income as reported on your tax returns
• Typically require your last two T1 Generals and Notices of Assessment (NOAs)
• Average your past two years of income for qualification

Alternative or “Alt-A” lenders:

• Designed for borrowers with strong credit and equity but limited documentation
• May use stated income or gross revenue verified by business deposits
• Allow more flexibility in how your income is presented

This flexibility helps self-employed borrowers who write off legitimate business expenses but still have strong, stable cash flow.

Documents Required for a Self-Employed Mortgage

The documentation you’ll need depends on your business type and the lender’s requirements.
Typical documents include:

• Last two years of T1 Generals and Notices of Assessment
• Bank statements (personal and business, 6–12 months)
• Proof of HST/GST payment
• Contracts or invoices showing ongoing or future revenue
• Articles of Incorporation or business license
• Business financial statements (past two years)
• Current mortgage statement and property tax bill (if refinancing)

Once we understand your goals, we’ll confirm exactly what’s needed and help you organize everything.

When You Can’t Provide Standard Proof of Income

If your tax returns don’t show the full picture of your earnings, there are still excellent mortgage options available.

We work with lenders that specialize in stated-income or business-for-self programs.
These programs allow you to qualify based on your stated income, supported by business activity, deposit history, and overall financial profile — not just line 150 on your tax return.

These mortgages are ideal for incorporated professionals, contractors, and small business owners who expense heavily for tax efficiency.

Rates for stated-income programs are slightly higher than traditional mortgages, but the flexibility often makes the difference between an approval and a decline.
And in many cases, clients later refinance into a lower-rate “A lender” mortgage once they’ve built a longer income history.

Minimum Down Payment for the Self-Employed

Your down payment requirements depend on how much income documentation you can provide and the type of property you’re buying:

• 5% down if your income is fully documented and the property is under $1.5 million (insured mortgage)
• 10–20% down if using stated income or alternative verification
• 20% down for homes over $1.5 million, rental properties, or most refinances

When your down payment is less than 20%, the mortgage must be insured through CMHC, Sagen, or Canada Guaranty.
Sagen and Canada Guaranty continue to offer flexible self-employed programs, while CMHC’s guidelines are more limited.

If your down payment is 20% or more, the mortgage is conventional and does not require default insurance.

Refinancing When You’re Self-Employed

If you already own a home, refinancing can be a powerful way to access your equity — for example, to consolidate business debt, invest in growth, or fund a major purchase.

We’ll help you determine your new maximum mortgage amount and compare lenders across both A and alternative programs to find your best fit.

Because we understand how lenders interpret self-employed income, we can often help you qualify for more than a bank branch might.
Our goal is to secure your refinancing with the most favorable terms and the smoothest approval possible.

Understanding Default Insurance and Amortization

If your down payment is less than 20%, your mortgage will include default insurance.
This insurance protects the lender if payments are missed — it’s added to your mortgage amount and varies between 2.8% and 4.0%, depending on your down payment.

For insured mortgages, the standard maximum amortization is 25 years.
For conventional mortgages (20% down or more), amortizations can extend to 30 years, helping reduce monthly payments.
The insured 30-year amortization introduced in 2024 applies only to first-time buyers and new builds, not most self-employed purchases or refinances.

Why Work With Dominion Lending Centres

As part of Dominion Lending Centres, one of Canada’s largest mortgage brokerages, we have access to lenders that specialize in self-employed programs — including banks, credit unions, and private lenders.

Over half of all Canadian mortgages are now arranged through brokers because of the choice, expertise, and personal service they provide.

We work for you, not the bank.
That means unbiased advice, clear communication, and a mortgage plan designed around your goals — not a lender’s quotas.

Ready to Get Pre-Qualified?

You can start your mortgage journey right now.
Click Apply Now to complete your secure online mortgage pre-qualification — it takes just a few minutes and won’t affect your credit.

Once submitted, we’ll review your information, confirm what you qualify for, and reach out with your personalized plan.
You’ll know your maximum mortgage amount, rate options, and next steps.

Prefer to talk first? Call or email anytime — we’ll walk you through everything personally.

Start your pre-qualification today and let’s turn your business success into homeownership success.