Mortgages for the Self Employed
Your Trusted Partner in Home Financing
Small and medium-sized businesses are the engine of the Canadian economy.
When it comes to mortgages, it hasn't always paid to be self-employed, because reducing your taxable income can make it difficult to qualify for the mortgage you deserve. We understand business owners because we're business owners, too.
Good accountants help you legitimately reduce taxable income. The problem is that a bank then looks at the bottom line on your Notice of Assessment and decides you can't afford the home you clearly can. That's where we come in.
Self-Employed Mortgages in Trenton, Quinte West & Belleville
Contractors, trades, farmers, truckers, real estate agents, small business owners and commissioned salespeople make up a big part of our local economy. For 30 years we've helped self-employed borrowers across the Quinte region get approved when the banks said no, by matching each file to the lender whose rules actually fit.
Qualify Based on Your Business Revenue, Not Just Your Tax Return
When your figures don't add up on paper, Alt-A lenders can look at the bigger picture. Instead of relying only on the net income on your tax return, they can qualify you based on the revenue going through your business bank accounts, along with your credit, your down payment or equity, and how long you've been in business.
- Business bank statement programs: your deposits and revenue history support your income.
- Stated income: a reasonable income for your industry and business size, backed by your time in business and credit history.
- Purchases, refinances and debt consolidation: use your equity to pay off high-interest business or personal debt.
- Competitive rates: Alt-A rates are typically only modestly higher than bank rates, and often far lower than private financing.
The Little-Known 10% Down Option for Self-Employed Buyers
Many people assume self-employed buyers need 20% down or more. Not necessarily. There is an insured mortgage program for purchases that lets qualified self-employed buyers purchase a home with as little as 10% down, using a reasonable stated income instead of relying only on what appears on their tax returns. It's one of the best-kept secrets in Canadian mortgage lending: many borrowers, and even some lenders, don't know it exists.
It typically suits owner-occupied buyers with at least two years in business and good credit. If you've been told you need a bigger down payment because of your tax returns, it's worth a conversation.
When Traditional Lenders Still Work
Sometimes the bank is the right answer after all. Some lenders will add back certain business expenses, such as depreciation or business-use-of-home costs, or average two years of income in your favour. Part of our job is knowing which lender treats your type of income best, so you get the lowest rate you qualify for.
Private and In-House Options
If you're newer to self-employment, have bruised credit or need to close quickly, we also have access to private lenders and our own in-house private funds. These are short-term tools, and we'll build a clear plan to move you to a lower-rate lender as your business history grows.
Why Work With a Broker
Every lender treats self-employed income differently. As your broker, my sole job is to find the lender whose rules fit your business, and the lowest overall set of rates and terms you qualify for. We live and work in the Quinte region and have placed thousands of mortgages here, so we understand local businesses, rural properties and seasonal income.
Self-Employed Mortgage FAQ
Can I get a mortgage if my tax returns show low income?
Often, yes. Many self-employed borrowers legitimately write off expenses and show a lower income on their tax returns than their business really supports. Some lenders can qualify you based on the revenue flowing through your business bank accounts, or on a reasonable stated income for your industry, instead of the net income on your Notice of Assessment.
How long do I need to be self-employed to qualify?
Most programs look for at least two years in business, ideally in the same line of work. If you've been self-employed for less time but have a long history in the same industry, there may still be options, especially with alternative or private lenders.
Do I need 20% down as a self-employed buyer?
Not always. There is an insured program for purchases that lets qualified self-employed buyers purchase a home with as little as 10% down using a reasonable stated income, rather than relying only on their tax returns. Many people, and even some lenders, don't know it exists.
What documents will I need?
Usually your last two years of personal tax returns and Notices of Assessment, proof of how long you've been in business (such as a business registration or licence), and recent business and personal bank statements. Incorporated borrowers may also need financial statements. We'll tell you exactly what your situation requires up front.
What if a bank or alternative lender says no?
Simpligo Mortgages also has access to private lenders and our own in-house private funds. A short-term private mortgage can bridge the gap while you build a stronger income history, with a clear plan to move back to a lower-rate lender.
Call or text Craig at 613-394-5810 or email craig@simpligomortgages.com for a confidential conversation about your options.
All financing is subject to lender and insurer approval, property valuation and program requirements. Program features, eligibility and down payment requirements vary and can change.
