5 Myths About Getting a Mortgage When You're Self-Employed

If I had a dollar for every self-employed client who said 'I didn't think I could even get a mortgage,' I'd have a very nice vacation fund. The reality? Self-employed Canadians get mortgages every day. Let's bust some myths.

Myth #1: Banks won't lend to self-employed borrowers.

False. Major banks absolutely lend to self-employed borrowers — they just require different documentation. Many have specific 'Business for Self' programs designed for exactly this situation. The key is knowing which lenders work best for your income structure.

Myth #2: I need to show massive income to qualify.

Not quite. Qualification is based on your gross income minus reasonable business expenses — what the CRA sees on your Notice of Assessment. The trick is in how you present your income. I work with self-employed clients every week to make sure their application tells the full, accurate story.

Myth #3: My deductions will hurt me.

This is complicated. Yes, writing off expenses reduces your taxable income — which is great for your tax bill but can affect mortgage qualification. Some lenders use 'stated income' programs or look at bank deposits and business revenues rather than just NOAs. There are options.

Myth #4: I need to have been self-employed for at least 2 years.

Two years is the standard for A lenders, yes. But if you've been in business for less time — especially if you have strong income, good credit, and a solid down payment — there are B lender and alt lender options that can work. I'll be honest about where you stand.

Myth #5: I'll automatically get a higher rate.

Not necessarily. If you qualify through an A lender with a Business for Self program, you get standard market rates. The premium rates are for alt and private lenders — which we only use if A lenders aren't an option. We always aim for A first.

The bottom line? Being self-employed is not a mortgage death sentence. It just requires a broker who knows how to work with your income type. That's what I do. Book a call and let's look at your specific situation.