Mortgage Solutions for Self-Employed Borrowers in Vancouver, BC

October 6, 2025 | Posted by: Alex Vinarski

Mortgage Solutions for Self-Employed Borrowers in Vancouver, BC

 

Your 5 Mortgage Options as a Self-Employed Professional

1. The Standard Mortgage (Best Rates & Terms)

This is the ideal scenario if your declared income is strong and stable.

  • How it Works: Lenders use the income reported on your Notice of Assessment (Line 15000) from the last two years, just as they would for a salaried employee.

  • Minimum Down Payment: As low as 5%

  • Rates: The best available market rates.

  • Mortgage Insurance: CMHC insurance is required if your down payment is less than 20%.

  • Best For: Self-employed individuals with high, stable declared income on their tax returns.

2. The CMHC Self-Employed Program (The 'Add-Back' Strategy)

This is a powerful program for those whose taxable income doesn't reflect their true earnings.

  • How it Works: Lenders can add back 15-20% to your declared income or reinstate specific business expenses you claimed, such as:

    • Business use of your home

    • Car expenses and depreciation

    • Capital Cost Allowance (CCA)

  • Minimum Down Payment: 10%

  • Rates: Excellent, best available market rates.

  • Mortgage Insurance: CMHC insurance is required (can be added to the mortgage).

  • Best For: Self-employed borrowers with moderate declared income but significant, legitimate business write-offs.

3. The Net Worth Program (Leverage Your Assets)

If your income is low but you have substantial savings or investments, this program is for you.

  • How it Works: Lenders use your income plus a amount of your liquid assets (savings, stocks, etc.) to qualify you for a larger mortgage amount. For exapmle: if you qualify for $300000 mortgage and have $200000 in assests, you  will qet $500000 mortgage.

  • Minimum Down Payment: 20% - 35%

  • Rates: Very competitive, close to best market rates.

  • Mortgage Insurance: No insurance fee required.

  • Best For: Self-employed individuals with strong assets but lower declared income.

4. The Stated Income Program (Bank Statements as Proof)

When your tax returns don't tell the whole story, we use your bank statements instead.

  • How it Works: You state your income, and we verify it using 12 months of business bank statements showing consistent deposits. No tax returns required.

  • Minimum Down Payment: 20%

  • Rates: Starting from 4.99%

  • Fee: A one-time 1% lender fee typically applies.

  • Credit: This program is available even with bad credit.

  • Best For: Self-employed borrowers with strong cash flow that isn't reflected on their tax returns, or those with past credit challenges.

5. The Private Mortgage (Fast & No-Income-Verification) 

This is your solution for urgent needs, complex situations, or when other doors have closed. 

https://www.ipotekacanada.com/index.php/private-mortgages

  • How it Works: Approval is based on the equity in the property, not your income or credit history.

  • Minimum Down Payment: 25% (20% considered in some cases).

  • Rates: Starting from 5%

  • Fees: A lender/broker fee applies (typically 1-2%).

  • Documents: Just an application, a property appraisal, and a credit check. Any credit situation is considered.

  • Best For: Urgent purchases, borrowers with major credit issues, or those who need a fast, short-term solution with a plan to refinance later.

Which Option is Right for You?

The best path depends on your unique financial picture. The key is to work with a broker who understands all these options and can match you with the right lender.

As your mortgage broker, I will help you:

  • Analyze your income, assets, and credit.

  • Determine which program offers you the best rate and terms.

  • Navigate the application process smoothly.

Don't let the self-employment journey keep you from owning a home in Vancouver.

Ready to Find Your Self-Employed Mortgage Solution?

Contact me today for a free, confidential consultation. Together, we'll review your situation and find the perfect mortgage program to help you secure your dream home.

More information here:

https://www.ipotekacanada.com/index.php/mortgages-selfemployed

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