Mortgages for Business Owners in Ontario
Specialized mortgage solutions for entrepreneurs, contractors, freelancers, and business owners. We understand self-employed income.
Self-Employed Mortgage Solutions
Being your own boss comes with many advantages, but getting a mortgage shouldn't be one of the challenges. Traditional lenders often struggle to understand self-employed income, leading to frustrating declines despite your obvious financial success.
As a mortgage agent who specializes in self-employed clients, I understand the unique income patterns of entrepreneurs, contractors, and freelancers. Your business bank statements, industry success, and real-world cash flow matter just as much as your tax returns—sometimes more.
Whether you're a contractor who writes off vehicle expenses, a consultant who incorporates for tax efficiency, or a business owner reinvesting profits into growth, there are mortgage programs designed for your situation. With access to specialized lenders who understand self-employment, I can often find approval where banks say no.
Why Traditional Lenders Struggle with Self-Employed
Tax Optimization Gap
Smart tax planning means writing off legitimate expenses, lowering your taxable income. But banks use this lower number, not your actual cash flow.
Complex Income Structure
Salary, dividends, retained earnings, multiple revenue streams—self-employed income is rarely straightforward, confusing traditional underwriters.
Business Investment
Reinvesting profits into equipment, inventory, or expansion is smart business—but it reduces the income banks see.
Income Variability
Seasonal businesses, project-based work, and growth phases create income swings that spook risk-averse bank underwriters.
Self-Employed Mortgage Programs
Traditional Full Documentation
If your declared income on tax returns supports the mortgage amount you need, traditional programs offer the best rates. Requires 2 years of T1 Generals, NOAs, and possibly business financial statements.
Stated Income (Business-for-Self)
Declare a reasonable income based on your business type and support it with business bank statements showing cash flow. No need to use low tax return income for qualification.
Bank Statement Programs
Income calculated from 12-24 months of business or personal bank deposits. Great for those with complex income structures or significant write-offs.
Equity-Based Programs
For self-employed with significant down payment or equity, some programs focus primarily on the equity position rather than income verification.
Documentation Options
Traditional Documentation
- • 2 years personal T1 General tax returns
- • 2 years Notice of Assessments (NOAs)
- • Business financial statements
- • Articles of incorporation/business license
- • Accountant-prepared statements (if applicable)
Stated Income Documentation
- • Proof of business ownership (2+ years)
- • Business license or registration
- • 6-12 months business bank statements
- • Signed income declaration
- • Sometimes: CRA business number confirmation
The Self-Employed Mortgage Process
Income Strategy Session
45 minWe review your business structure, income patterns, and documentation to determine the best mortgage approach for your situation.
Documentation Gathering
3-7 daysCollect the required documents based on your chosen program—either full income verification or stated income with business banking.
Lender Matching
1-2 daysI match your profile to lenders most likely to approve and offer competitive rates. Self-employed expertise matters here.
Application & Submission
2-3 daysSubmit your application with a cover letter explaining your business and income. Presentation matters for self-employed files.
Underwriting & Approval
5-10 daysWork through underwriter questions and provide any additional documentation requested. I advocate for your file throughout.
Closing
Closing dayFinalize with your lawyer and receive your funds. Celebrate being a homeowner or accessing your equity!
Tips for Self-Employed Mortgage Approval
Plan 6-12 Months Ahead
If possible, adjust your tax strategy the year before applying. Reporting slightly higher income can open better mortgage options.
Keep Business and Personal Finances Separate
Separate bank accounts make it easier to demonstrate business income and professional financial management.
Maintain Clean Bank Statements
Consistent deposits, no NSF charges, and clear business patterns strengthen your application.
Document Everything
Contracts, invoices, and client lists can support your income claims and business stability.
Consider a Larger Down Payment
Larger down payments open more lending options and better rates for self-employed borrowers.
Work with a Self-Employed Specialist
Mortgage agents who understand self-employment can present your file effectively and know which lenders are most receptive.
Real Self-Employed Scenarios
The Tax-Efficient Contractor
Dave, an electrical contractor in the GTA, earns $180,000/year but reports $65,000 after vehicle, tools, and home office deductions. Banks offered him only $280,000. Using a stated income program with his strong business bank statements showing $12,000+ monthly deposits, he qualified for $520,000—enough for his first home.
Tax return income: $65,000 | Stated income: $140,000 | Mortgage approved: $520,000
The Incorporated Consultant
Sarah runs a successful marketing consultancy through her corporation. She pays herself a modest salary and takes dividends, keeping most profits in the business. Her personal income appears low on tax returns. By using a business-for-self program that considered her corporate retained earnings and gross billings, she qualified for $650,000.
Corporate gross revenue: $350,000 | Personal income: $80,000 | Mortgage approved: $650,000
The New Business Owner
Mike left his corporate job 18 months ago to start his own IT consulting firm. With only 1.5 years of self-employment, most lenders declined. However, his 10 years of prior experience in IT and strong first-year financials helped him qualify through an alternative lender who considered his industry background.
Self-employed: 18 months | Industry experience: 10 years | Mortgage approved: $400,000
* These scenarios are illustrative examples. Actual results vary based on individual circumstances.
Frequently Asked Questions
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Mortgage Agent Level 1 | Dominion Lending Centres | License #M23005941
Self-employed mortgage options vary by lender and individual situation. Income verification requirements differ by program. Contact us for personalized guidance.