Mortgages for the Self Employed

Mortgages for Self-Employed Borrowers in BC | Best Rates with 10% Down

As a self-employed professional, you've built your success on flexibility and smart decisions. Shouldn't your mortgage be the same? Traditional bank calculations often don't reflect your true income, but that doesn't mean you're stuck with high-rate alternative loans.

I specialize in finding the best possible mortgage solutions for self-employed individuals, from prime bank programs with the lowest rates to flexible alternatives when needed. You can often get approved with a great rate and only 10% down.

1.Your Best Option: The Prime Bank Self-Employed Program

This is the flagship program you're referring to. It's an insured mortgage (default insurance is added to the loan) that allows major banks and monolines to offer their best rates with a low down payment.

• Minimum Down Payment: 10% (This is a key advantage over the standard 20% required for uninsured alternative loans).

• Best Market Rates: You qualify for the same low interest rates as salaried employees.

• How It Works: Instead of just using your line 15000, lenders use a more generous calculation to determine your True Gross Income. This can include:

  • Adding Back 15%: Many lenders will add a flat 15% to your declared net income (from your Notice of Assessment) to account for business write-offs.

  • Adding Specific Expenses: Other lenders will add back specific non-cash expenses you claimed to reduce your taxable income, such as:

    • Capital Cost Allowance (CCA)

    • Car expenses and vehicle depreciation

    • Home office expenses (a portion of your rent, utilities, etc.)

• Requirements: Typically requires 2 years of filed T1 Generals and Notice of Assessments to establish an income average. Good credit (680+ score) is also required.

• Best For: Self-employed borrowers with 2+ years of filed tax returns who want the absolute best rate and minimal down payment.

2. Stated Income Mortgage (The "Bank Statement" Program)

This is the classic solution for newer businesses or those with significant write-offs. We use your business bank deposits to prove your income.

• Minimum Down Payment: 20%

• No Tax Returns Required: Instead, we use 12 months of your business bank statements to calculate income based on deposits.

• Credit: Flexible. We can often work with credit scores as low as 600 ( in some cases even lower).

• Rates: Competitive, but higher than the prime program above.

• Best For: Self-employed, contractors, commission earners, tips and cash earners, with strong cash flow but less than 2 years of history or high write-offs.

3. Private Mortgage (Fast & No-Income-Verification)

A short-term solution to get you into the property now, with a plan to refinance into a better program later.

• Minimum Down Payment: 20-25%

• No Income Verification: Approval is based primarily on the equity in the property.

• Credit: All credit situations are considered.

• Speed: Can be approved and funded in days.

• Best For: Urgent purchases, complex income scenarios, or those rebuilding their credit with a plan to qualify for a better mortgage in 1-2 years.