Self-Employed Mortgages in Lethbridge and Across BC and Alberta
When you work for yourself, your income doesn’t look like a standard pay stub, and the income on your tax return may be lower than what your business actually earns. I find lenders who understand that, and I present your application so it reflects how you really earn.
Who this is for
This is for anyone whose income doesn’t come from a single steady paycheque, including:
- Business owners, incorporated or sole proprietors
- Contractors and trades who invoice for their work
- Freelancers and consultants with multiple clients
- Commission earners in sales, real estate or similar roles
- Newer business owners with less than two years on their own
I’m a mortgage broker based in Lethbridge, Alberta, licensed to arrange mortgages in both British Columbia and Alberta.
How I help if you’re self-employed
| What I do | Why it matters |
|---|---|
| Explain how different lenders view your income | Lenders calculate self-employed income in different ways, and the method can change your approval by tens of thousands of dollars |
| Match you with the right lender and program | Some lenders specialize in self-employed borrowers and offer programs a bank won’t mention |
| Organize the right documents | A complete, well-presented file avoids delays and declined applications |
| Plan your application with your accountant | How you report income and expenses affects what you qualify for, so timing and strategy matter |
Three paths to a self-employed mortgage
| Path | Best for | Down payment |
|---|---|---|
| Traditional lender | Your declared income is high enough to qualify on its own | As low as 5% |
| Insured stated income (Business-for-Self) | 2+ years in business, strong credit, but lower taxable income because of write-offs | Usually 10% |
| Alternative lender | Newer businesses, irregular income or credit challenges | Usually 20% or more |
Rates are best on the traditional path and higher with alternative lenders. Part of my job is finding the best path for you now, and sometimes a plan to move to a better one later.
How a gross-up can help
Some lenders adjust your income to account for business expenses that aren’t real cash costs:
| Income the lender uses | |
|---|---|
| Net income on your tax return | $80,000 |
| With a 15% gross-up | $92,000 |
| Or with $15,000 in eligible add-backs (like home office and depreciation) | $95,000 |
Not every lender offers this, and the rules vary. It’s one of the biggest reasons comparing lenders matters when you’re self-employed.
What to have ready
| Business type | Documents |
|---|---|
| Everyone | Two years of Notices of Assessment and full T1 General tax returns, plus personal and business bank statements |
| Sole proprietors | Your Statement of Business Activities (T2125) and a business licence or GST registration |
| Incorporated | Two years of company financial statements and your articles of incorporation |
| Commission earners | Recent pay statements, a job letter and two years of tax returns |
Your down payment should be in an account with about 90 days of statements showing where it came from. Please don’t send sensitive documents by regular email. I’ll show you how to share them securely.
For a deeper look, read my self-employed mortgage guide.
Self-Employed questions
Most lenders verify self-employed income using your last two years of Notices of Assessment and T1 General tax returns, and average the net income. Depending on your business, they may also ask for a T2125, company financial statements or bank statements.
Yes. Some lenders gross up your income by up to 15% or add back non-cash expenses like depreciation and home office costs. Stated income programs can also qualify you on a reasonable income for your business, usually with at least 10% down.
Most lenders prefer two years of self-employment, since that gives them two tax returns to review. With less than two years, you may still qualify if you have experience in the same line of work, bought an established business or have strong savings and credit.
Lenders look at your income over a full year, usually averaged over two years, so month-to-month changes are expected. If your income has dropped from one year to the next, lenders may use the lower year instead of the average.
Yes. I’m licensed to arrange mortgages in both British Columbia and Alberta, so I can help self-employed buyers and homeowners in Lethbridge, elsewhere in Alberta or anywhere in BC.
Let’s talk about your plans
Every situation is a little different, and self-employed files benefit the most from planning ahead. Ideally, talk to me 6 to 12 months before you plan to buy, so we have time to set things up in your favour.