Self-Employed Mortgage Solutions
A self-employed mortgage is a home financing solution tailored for individuals who earn income through freelancing, contract work, or running their own business—rather than receiving a regular salary from an employer. These mortgages are specifically designed to accommodate the unique income structures and documentation challenges that self-employed individuals face.
Unlike traditional mortgage applicants with consistent pay stubs, self-employed individuals typically report income that fluctuates and may appear lower on paper due to business deductions and expenses. Self-employed mortgage programs take these factors into account, offering greater flexibility in how income is assessed—often looking beyond just net income or standard tax returns.
Benefits of Self-Employed Mortgages
Discover how specialized mortgage solutions can help self-employed individuals achieve homeownership despite unique income structures.
Flexible Income Verification
Self-employed mortgage lenders provide flexible income verification, factoring in business expenses, deductions, and non-traditional income sources to better reflect your actual earning capacity rather than just what appears on tax returns.
Flexible Mortgage Approval
The approval process is tailored for self-employed individuals, considering variable income, business expenses, and deductions to help you qualify for a mortgage that suits your needs and financial situation.
Gross Income Consideration
Lenders may consider your business’s gross income, rather than just your personal tax returns—acknowledging that business deductions often reduce reported personal income while your actual cash flow may be stronger.
Alternative Documentation Options
Self-employed mortgage programs offer alternative documentation pathways, allowing business owners to use bank statements, business financial statements, and contracts to demonstrate income stability rather than relying solely on traditional income verification methods.
Higher Borrowing Capacity
Self-employed mortgage solutions may unlock greater borrowing capacity by considering income add-backs, business assets, and industry-specific income assessment methods that traditional mortgage calculations typically overlook, helping entrepreneurs access better financing options.
Specialized Underwriting
Benefit from underwriters who specialize in self-employed finances and understand business cycles, industry-specific income patterns, and the legitimate tax strategies entrepreneurs use. This expertise ensures a more accurate assessment of your financial capability and creditworthiness.
Self-Employed Mortgage Programs
At MortgageABS, we understand the unique challenges that self-employed individuals face when applying for mortgages. Our specialized programs are designed to address these challenges and provide flexible solutions.
- Alternative income verification methods beyond traditional documents
- Consideration of business revenue and bank statements
- Options for stated income verification in certain cases
- Programs designed for sole proprietors, contractors, and business owners
- Solutions for those with less than two years of self-employment history
- Access to both traditional and private lending options
Resources for Self-Employed Borrowers
Explore these helpful resources designed to simplify the mortgage process for self-employed individuals.
CMHC Self-Employed
CMHC Self-Employed allows self-employed borrowers to access CMHC mortgage loan insurance at no extra cost. With flexible income and employment requirements, it makes homeownership possible for those with variable income sources.
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Book ConsultationFrequently Asked Questions
Get answers to common questions about self-employed mortgages and how they work.
Self-employed mortgage lenders typically review tax returns, Notice of Assessment, financial statements, bank statements, and business revenue. Unlike traditional mortgages that focus on T4s and paystubs, self-employed income verification considers a broader range of documentation and may focus on gross business income rather than just net income after deductions.
Yes, self-employed mortgage applicants typically need to provide additional documentation to verify income. While traditional applicants might only need recent pay stubs and T4s, self-employed individuals often need to provide business financial statements, personal and business tax returns, bank statements, and business license or articles of incorporation.
Traditional lenders typically require at least two years of self-employment history, but some specialized programs can work with just one year of documented self-employment. If you have less than two years but strong credit and a substantial down payment, we can explore alternative lending options that may be more flexible with self-employment history requirements.
Not necessarily. While some specialized self-employed mortgage programs may have slightly higher interest rates, many self-employed individuals with strong credit, substantial down payments, and properly documented income can qualify for the same competitive rates as traditional borrowers. Our specialists work to find the most favorable rates based on your specific situation.
Yes, it’s possible. While many traditional lenders require two years of self-employment history, some specialized programs can accommodate borrowers with as little as one year of self-employment, especially if you have previous experience in the same industry before becoming self-employed. Alternative and private lenders may also have more flexible criteria for newer self-employed individuals.
The minimum down payment for self-employed mortgages starts at 5% for homes under $500,000, with a graduated scale for higher-priced properties. However, some self-employed mortgage programs may require 10% or more, particularly for those with limited documentation or less established businesses. A larger down payment often improves your chances of approval and may secure better interest rates.