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Self-Employed Mortgages in Edmonton
When your tax returns do not tell the whole income story, you need a broker who knows how to present your loan.
Self-employed Canadians often earn more than their tax returns show. Legitimate business deductions reduce taxable income, which is great at tax time but creates a gap when applying for a mortgage. Jason Scott specializes in helping Edmonton business owners, freelancers, contractors, and incorporated professionals get approved by matching them with lenders who understand how self-employment income actually works.
Why Self-Employed Mortgages Are Different
Traditional lenders calculate your income based on your Notice of Assessment or T1 General. If you write off vehicle expenses, home office costs, meals, and equipment, your declared income may be much lower than what you actually take home. This can disqualify you from the amount you need, or force you into less favourable terms.
Specialized lenders and alternative documentation programs exist specifically for this situation. Jason knows which lenders offer these programs and how to present your loan to maximize your chances of approval at the best available rate.
Documentation Options
- Traditional (full documentation): Two years of T1 Generals, Notices of Assessment, and business financial statements. Best if your declared income supports the mortgage amount you need.
- Stated income programs: Some lenders allow you to state a reasonable income supported by bank deposits, contracts, or invoices rather than relying solely on tax returns. These may require a larger down payment.
- Bank statement programs: Lenders review 12 to 24 months of business bank deposits to calculate effective income.
Down Payment Expectations
Self-employed borrowers using alternative documentation typically need a minimum of 10% to 20% down, depending on the lender and program. Full-documentation self-employed applications with strong income can qualify with as little as 5% down, same as salaried buyers.
Tips for a Smoother Approval
- Keep personal and business banking separate
- Maintain consistent deposits that reflect your earning capacity
- Application taxes on time, every year
- Have your accountant prepare a professional income statement if requested
- Talk to Jason before making major tax decisions that might affect your declared income
Whether you are a sole proprietor, incorporated, or a gig worker, the right documentation strategy makes the difference between a frustrating decline and a smooth approval. Start with a pre-approval to see where you stand, or explore the mortgage calculators to estimate payments. See self-employed for how Jason reads T1s and deposits.
Self-employed and planning to buy or renew? Call 780-721-4879 or apply online. Jason has helped hundreds of Edmonton business owners navigate this process.
Self-Employed Mortgage FAQs
How many years of self-employment history do I need?
Most lenders want at least two years of self-employment history, though some programs accept less if you have strong credit, a large down payment, or previous experience in the same industry.
Does incorporating my business help with mortgage approval?
It depends on how you pay yourself. Salary and dividends from a corporation are treated differently by lenders. Jason can advise on how your corporate structure affects qualifying and which lenders handle it best.
Can I still get an insured mortgage if I am self-employed?
Yes, if your declared income on tax returns supports the mortgage amount. Insured mortgages (less than 20% down) use the income on your Notice of Assessment. If your declared income is too low, you will typically need at least 20% down and a conventional lender or alternative program.
Ready for a clearer mortgage plan?
Call Jason. He will educate you, answer your questions, and make the next step easier.