Stated Income Mortgages for Self-Employed Borrowers | No Tax Returns Needed
October 28, 2025 | Posted by: Alex Vinarski
Stated Income Mortgages for Self-Employed Borrowers | No Tax Returns Needed
As a self-employed professional in BC, you know that your tax returns often don't tell the whole story. Significant business write-offs can make it look like you earn less than you actually do, causing traditional banks to decline your mortgage application.
The Stated Income Mortgage (also known as an 'Alternative A' or 'Alt A' mortgage) is a powerful bank program designed specifically to solve this problem. It allows you to qualify for a mortgage based on your actual cash flow, not just your taxable income.
What is a Stated Income Mortgage?
A Stated Income Mortgage is a lender-approved program where you can 'state' your income for qualification purposes. Instead of relying on your Notice of Assessment (NOA) and T1 Generals, we use your business bank statements to verify your earnings, providing a much more accurate picture of your financial health.
Who is This Program For?
This program is ideal for:
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Self-employed business owners (sole proprietors, incorporated)
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Contractors and freelancers
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Individuals with commission-based income
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Those who receive a significant portion of their income as tips or cash
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Borrowers who are new to their business (less than 2 years)
If you cannot provide traditional income documentation, this program is your gateway to competitive financing.
How It Works: The Simple Documentation Process
The required documents are straightforward:
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12 Months of Business Bank Statements: These statements show the deposits that justify the income you state.
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Business Registration: Proof that your business is legally established.
That’s often all it takes. No tax returns are required.
Key Benefits of a Stated Income Mortgage
1. Access to Great Rates
Enjoy interest rates that are very close to traditional bank mortgages, far better than private lending rates.
2. Flexibility for Various Needs
Use this program for:
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Home Purchases
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Refinancing
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Rental Property Investments
3. Lower Upfront Costs
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No CMHC Insurance: With a minimum 20% down payment, you avoid the CMHC insurance premium 3.3%.
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A 1% Lender Fee typically applies instead, which is often more affordable.
4. Flexible Down Payment
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Minimum 20% Down Payment
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Down payment funds can be gifted from a family member, even for rental properties.
5. Access to Additional Products
You can even qualify for a Home Equity Visa (a revolving line of credit) as a first or second mortgage, up to 80% of your property's value.
6. Credit Flexibility
We can often secure approval for clients with less-than-perfect credit, making this a versatile solution for many situations.
What If I Don't Have Bank Statements?
If you cannot provide the necessary bank statements, don't worry. We can still help you secure financing through a Private Mortgage with no income verification required. Contact me to discuss this alternative.
Is a Stated Income Mortgage Right for You?
If you are self-employed and have:
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A minimum 20% down payment
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12 months of business bank statements showing consistent deposits
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A desire for competitive, near-bank-level rates
...then this program is likely an excellent fit for your needs.
Stop Letting Your Tax Returns Hold You Back
You've worked hard to build your business. Now, it's time for your mortgage to reflect your true success.
Contact me today to see if you qualify for a Stated Income Mortgage. Let's get you the financing you deserve without the hassle.
More information on mortgages for self-employed here: https://www.ipotekacanada.com/index.php/mortgages-selfemployed
