Self-Employed Mortgages in Ontario
Tailored Mortgage Solutions for Entrepreneurs, Freelancers & Business Owners!
Getting a Mortgage as a Self-Employed Homebuyer in Ontario
Being self-employed comes with many financial benefits, but when it comes to securing a mortgage in Ontario, the process can be more challenging. Traditional lenders often require proof of stable income, making it harder for business owners, freelancers, and gig workers to qualify under standard mortgage rules.
As an Ontario mortgage broker, I specialize in helping self-employed individuals secure the best mortgage rates and terms—whether you’re buying a home, refinancing, or looking to invest in real estate.
✔ Flexible mortgage options for business owners
✔ Lenders who understand fluctuating income
✔ No tax returns? No problem—alternative lending solutions available!
✔ Access to competitive rates & specialized self-employed mortgage programs
If you’re self-employed and struggling to qualify for a mortgage, I’ll help you navigate the process and secure the best financing options available.
How Do Self-Employed Mortgages Work?
A self-employed mortgage is designed for individuals who run their own business or earn income outside of traditional employment. Unlike salaried employees, self-employed borrowers must prove income differently, often using business financials, tax returns, or alternative documentation.
Who qualifies for a self-employed mortgage?
✔ Small business owners & entrepreneurs
✔ Freelancers & gig workers (Uber, DoorDash, etc.)
✔ Commission-based professionals
✔ Contractors & tradespeople
✔ Real estate investors & landlords
Even if your income fluctuates or you write off a large portion of your earnings for tax purposes, there are alternative mortgage solutions available.
Challenges Self-Employed Borrowers Face
✔ Lower Stated Income – Many self-employed individuals write off expenses to reduce taxable income, which can impact mortgage qualification.
✔ Strict Income Verification Rules – Traditional lenders require 2+ years of tax returns (NOAs), which may not reflect actual earnings.
✔ Higher Down Payment Requirements – Some lenders may require at least 10-20% down if income verification is limited.
✔ Limited Access to Traditional Mortgages – Big banks often have stricter lending rules for self-employed applicants.
If these challenges sound familiar, don’t worry—I work with alternative lenders who offer flexible mortgage solutions for self-employed borrowers.
Mortgage Options for Self-Employed Borrowers in Ontario
1. Stated Income Mortgages
If you have difficulty proving income through traditional means, a stated income mortgage allows you to qualify based on a reasonable estimate of your earnings.
✔ Ideal for business owners with significant tax write-offs
✔ Requires at least 10-20% down payment
✔ Available through alternative and private lenders
2. Low-Doc or No-Doc Mortgages
Some lenders offer mortgages with reduced income verification, allowing self-employed borrowers to qualify with minimal paperwork.
✔ Best for those with fluctuating or seasonal income
✔ Higher interest rates may apply due to increased risk
✔ Available for purchases, refinances, and investments
3. Business Bank Statement Mortgages
Instead of using tax returns, this option allows self-employed borrowers to qualify based on 12-24 months of business bank statements, demonstrating consistent cash flow.
✔ Great for high-earning entrepreneurs with significant business revenue
✔ Ideal for those with tax deductions that lower reported income
4. Private Mortgage Lenders
For borrowers who don’t qualify with traditional lenders, private mortgage lenders offer customized solutions with more flexible income verification requirements.
✔ Easier qualification for self-employed borrowers
✔ Higher interest rates, but a good short-term solution
✔ Can be refinanced into a traditional mortgage later
How to Qualify for a Self-Employed Mortgage
To improve your chances of approval, here are some key requirements and tips:
1. Proof of Income & Employment
✔ 2+ years of Notice of Assessments (NOA) from the CRA
✔ Recent bank statements showing business cash flow
✔ Business financial statements (if applicable)
2. Strong Credit Score
✔ A credit score of 650+ increases your chances of approval
✔ Higher scores can secure better mortgage rates
3. Higher Down Payment
✔ If you can’t provide full income documentation, a 10-20% down payment may be required
4. Lower Debt-to-Income Ratio
✔ Lenders assess your ability to repay based on total debt load
Not sure if you qualify? Let’s assess your options together and find the best self-employed mortgage for your needs.
Self-Employed Mortgage vs. Traditional Mortgage – What’s the Difference?
| Feature | Traditional Mortgage | Self-Employed Mortgage |
| Income Verification | Salary/pay stubs | Business financials, bank statements, NOAs |
| Down Payment | As low as 5% | Typically 10-20% |
| Interest Rates | Competitive | Slightly higher for alternative lenders |
| Lender Options | Big banks & A lenders | A lenders, B lenders, & private lenders |
| Qualification Difficulty | Easier for salaried employees | More documentation required |
As a self-employed borrower, you may need a higher down payment and more documentation, but with the right lender, you can still secure a great mortgage rate.
Benefits of a Self-Employed Mortgage
✔ Access to More Lenders & Options – Unlike banks, mortgage brokers work with A lenders, B lenders, and private lenders to find the best fit.
✔ Flexible Income Verification – Even if your taxable income is low, you may still qualify with alternative documents.
✔ Higher Loan Amounts – Some lenders allow you to borrow based on gross revenue instead of net income.
✔ Competitive Interest Rates – Depending on your credit score and financial profile, you can still access low mortgage rates.
Step-by-Step Process to Getting a Self-Employed Mortgage
Step 1: Review Your Financial Situation
✔ Gather documents like bank statements, tax returns, and financial records.
✔ Determine your credit score & debt-to-income ratio.
Step 2: Get Pre-Approved
✔ I’ll help you compare multiple lenders and find the best mortgage solution.
✔ Lock in a competitive interest rate and determine your maximum loan amount.
Step 3: Choose the Right Mortgage Option
✔ Select the best mortgage for your financial situation (stated income, bank statement, or private mortgage).
Step 4: Submit Your Application & Get Approved
✔ Once approved, your mortgage is finalized, and you’re on your way to homeownership!
Why Work With a Mortgage Broker for a Self-Employed Mortgage?
✔ Access to Specialized Lenders – I work with banks, alternative lenders, and private lenders who cater to self-employed borrowers.
✔ Competitive Interest Rates – Get better mortgage rates than what traditional banks offer.
✔ Flexible Income Verification – No tax returns? No problem! I’ll find lenders who accept alternative income documentation.
✔ Stress-Free Mortgage Process – I handle the paperwork, negotiations, and approvals—so you can focus on your business!
Let’s Find the Best Self-Employed Mortgage Solution for You!
If you’re self-employed and looking for a mortgage in Ontario, I can help you navigate the process, compare lenders, and secure the best mortgage terms for your unique situation.
Contact me today for a free consultation!