ow to Get a Mortgage When You're Self-Employed in BC

December 21, 2025 | Posted by: Alex Vinarski

How to Get a Mortgage When You're Self-Employed in BC

Navigating the mortgage process as a self-employed professional can feel like you're being penalized for your success. Traditional lenders focus on your taxable income, but as a business owner, you know that line on your tax return doesn’t tell the whole story. It doesn’t account for your legitimate business write-offs, your consistent cash flow, or your equity.

The reality is, getting a mortgage when you're self-employed is absolutely possible—you just need to know which path to take. As a mortgage broker who specializes in self-employed financing, I help contractors, freelancers, and business owners every day. Here’s your strategic guide.

Why Is It Different for the Self-Employed?

Banks rely on the Notice of Assessment (NOA) and T1 General tax returns to verify stable income. For the self-employed, these documents often show a lower net income due to business deductions, even if your actual earnings are strong. The key is to present your financial picture in a way lenders can understand and approve.

Your 5 Pathways to Mortgage Approval

1. The Traditional Route (If Your NOA Shows Strong Income)
If your declared net income on your last two years of tax returns is high enough to qualify for your desired mortgage, you can apply like any salaried employee.

  • Requirements: 2 years of NOAs and T1 Generals.

  • Down Payment: As low as 5%.

  • Best For: Those with high declared income relative to their living expenses and desired mortgage.

2. The 'Add-Back' Program (CMHC-Insured)
This is a fantastic program where lenders can add back certain business expenses to your declared income. This can include:

  • A flat percentage (15-20%) of your net income.

  • Specific expenses like home office costs, vehicle expenses, and capital cost allowance (CCA).

  • Requirements: 2 years of tax returns + financial statements.

  • Down Payment: Minimum 10%.

  • Best For: Those with moderate declared income but significant, standard business write-offs.

3. The Stated Income Program (Alt-A Lending)
When your tax returns don’t reflect reality, we use your business bank statements instead.

  • How it Works: You 'state' your income, and we verify it with 6-12 months of business bank statements showing consistent deposits.

  • Requirements: Business registration and bank statements. No tax returns needed for qualification.

  • Down Payment: Minimum 20%.

  • Best For: Most self-employed borrowers with strong cash flow but lower declared income. This program is also works for clients with bad credit.

4. The Net Worth Program (Using Your Assets)
If your income is lower but you have significant savings or investments, we can use them to boost your application.

  • How it Works: Lenders combine your declared income with a portion of your liquid assets (e.g., savings, stocks, other property equity).

  • Down Payment: Typically 20-35%.

  • Best For: Business owners with strong assets but lower taxable income.

5. The Private Mortgage (Fast & Flexible)
When time is critical or other avenues are closed, a private mortgage is a powerful short-term solution.

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

  • Requirements: Primarily an appraisal of the property. Any credit situation is considered.

  • Down Payment: Minimum 25% (20% possible).

  • Best For: Urgent purchases, bridging a financial gap, or improving your situation to refinance to a better rate later.

Practical Tips for Self-Employed Borrowers

  • Plan Ahead: Lenders typically want to see a 2-year history of self-employment. The earlier you start organizing, the better.

  • Keep Clean Books: Work with an accountant. Clear financial statements and organized bank records are invaluable.

  • Minimize Large Deductions Before Applying: If possible, discuss with your accountant the impact of your deductions for the year you plan to apply.

  • Save a Larger Down Payment: A stronger down payment (20%+) opens up more options and better rates.

How a Mortgage Broker Makes the Difference

I don't just fill out applications—I act as your strategist and advocate. My role is to:

  1. Analyze your unique financial profile.

  2. Match you with the right lender and program (saving you from multiple bank rejections).

  3. Prepare and present your financial story in the strongest possible way.

  4. Negotiate terms and guide you smoothly to approval.

Your business success shouldn't be a barrier to homeownership—it should be your foundation.

Ready to Find Your Path?

Don't assume you won't qualify. The right program for your situation exists.

Contact me for a free, confidential consultation. Let's review your numbers and build a plan to get you the keys to your new home.

More information for self employed borrowers here: https://www.ipotekacanada.com/index.php/mortgages-selfemployed

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