Mortgage options
Self-employed? Lenders should see what you actually earn.
Good accountants keep your taxable income low. Then a bank uses that same number to say you cannot afford a mortgage. Tisha works with lenders that understand business income, and she knows how to present yours.
Mortgages for business owners, contractors and the self-employed
If you own a business, work on contract, or earn commission, you have probably noticed that the standard mortgage application was not written with you in mind. Prime lenders generally qualify you on the net income reported on your last two years of tax returns, which, if you write off expenses the way your accountant tells you to, may not reflect what your business really generates.
There are several ways around this. Some prime lenders will add back certain expenses, or use gross-up rules on your reported income. Insured self-employed programs allow qualified borrowers to purchase with as little as 10% down. Alternative lenders will qualify you on 6 to 12 months of business bank statements, with a modestly higher rate and a lender fee, and the plan is almost always to move you back to a prime lender once your filed income catches up.
Tisha spent years underwriting files like yours. She knows which lenders are genuinely friendly to self-employed borrowers, which documents tell your income story convincingly, and how to structure a file so it gets approved the first time.
"Your accountant did their job. Now let's find a lender that reads the whole story, not just one line."
Who this is for
Who Tisha helps
Sole proprietors
Trades, consultants, health practitioners and anyone filing business income on a T1.
Incorporated business owners
Salary, dividends and retained earnings presented in a way lenders can use.
Contractors and gig workers
Multiple income streams and short contracts, documented to show stability.
Commission sales
Realtors, brokers and sales professionals with variable income and a two-year average.
Newly self-employed
Less than two years in business? There are still options, especially if you stayed in the same field.
Refinancing or renewing
Your income changed since your last mortgage. Tisha makes sure the new lender reads it correctly.
How it works
How Tisha presents your income
- 01
Your income story
Notices of Assessment, T1 Generals, financial statements and bank statements, assembled into a picture lenders find credible.
- 02
Lender fit
Prime, insured self-employed program, or alternative. She matches you to the one that approves you on terms that make sense for your situation.
- 03
Approval
Tisha pre-empts the underwriter's questions before they are asked. That is the underwriting background at work.
- 04
Funding and the exit plan
If you start with an alternative lender, the plan to graduate back to prime pricing at renewal is set on day one.
Do I need two years of tax returns?
Most prime lenders want two years of Notices of Assessment and T1 Generals. If you have less history, or your reported income is too low, alternative lenders can use 6 to 12 months of business bank statements to establish income instead.
Will my write-offs hurt my application?
With a prime lender, usually yes, because they qualify on reported net income. Some allow add-backs for items like depreciation or business-use-of-home. Alternative lenders look at gross deposits instead, which is often a much fairer reflection of what you earn.
Do self-employed borrowers pay higher rates?
If you qualify with a prime lender, your rate is the same as any other borrower. Alternative lenders charge somewhat higher rates plus a lender fee, which is why Tisha treats them as a stepping stone rather than a permanent home.
How much down payment do I need?
Insured self-employed programs can allow 10% down for qualified borrowers. Alternative lenders generally want 20% or more. With a strong income history, standard 5% insured purchases are available too.
Related mortgage options
Free consultation
Tell Tisha how your business earns. She will tell you which lenders will say yes.
Tell Tisha what you are trying to do and she will come back with options, not a sales pitch. Free, no obligation, no credit check to start.
- Over 20 years in retail banking
- Former mortgage underwriter: she knows what lenders want
- Banks, credit unions, monoline and alternative lenders
- Lender-paid on most residential mortgages