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Get a Mortgage with a New Business: Self-Employed Canadians Are Qualifying Sooner Than You Think

If you’ve recently launched your own business, congratulations; you’ve taken a bold and exciting step toward financial independence and control over your future. But if you’re also thinking about buying a home, you might be wondering:
Can I qualify for a mortgage with a business that’s only a year old?
The answer: Yes, you can.
And with the right guidance and preparation, you can even get approved with as little as 5% down, through an A lender; the same top-tier institutions offering the most competitive mortgage rates in Canada.
At Home Mortgage Care, we work with new entrepreneurs every day. If you’re self-employed and have recently opened a business within the last year or so, this guide is for you.

The Self-Employed Mortgage Challenge

Many people assume that being self-employed automatically makes it harder to get a mortgage. While it’s true that lenders tend to scrutinize self-employed applicants more closely, it’s not an impossible hurdle; especially if your income is solid and your paperwork is in order.
The key challenges self-employed borrowers face include:
  • Lack of traditional, stable T4 income
  • Irregular cash flow or seasonal earnings
  • New business history (less than 2 years)
  • More complex documentation requirements
However, just because you’re newly self-employed doesn’t mean you can’t qualify. In fact, we’ve helped many first-year entrepreneurs get approved by A lenders, not just private lenders or B lenders.

What You Need to Qualify (Even with Just 1 Year in Business)

Here’s what lenders typically look for when considering a mortgage application from someone who is newly self-employed:
1. Strong Reported Income on Tax Documents
This is the most critical component. If your personal income tax return (T1 General) shows solid earnings from your business even for just one year it significantly strengthens your application. The higher the reported income, the better your debt service ratios will be, and the more you’ll be able to qualify for.
Tip: Don’t underreport your income to reduce taxes if you’re planning to buy a home soon. What you report is what lenders use to assess your mortgage eligibility.

2. Consistent and Healthy Deposits in Your Business Bank Account

Even if you’ve only been operating for 12 months, lenders want to see steady deposits that reflect actual business activity. This shows that your business is viable and that the income you’ve reported is genuine.

If your business bank statements show regular income coming in—especially if they align with what’s reported on your taxes this gives lenders additional confidence in your financial stability.

3. Clean Credit and Low Debt

Your credit score still matters. A good credit history, low balances on credit cards, and minimal outstanding debt will help improve your application—even more so if your business is new.

4. Minimum 5% Down Payment

The good news? You don’t need a massive down payment. With as little as 5% down, you can qualify for a mortgage with a top-tier lender. That means less money upfront, and more opportunity to get into the housing market earlier without waiting years to “prove” your business.

At Home Mortgage Care, we help clients prepare their documentation properly and present their case to lenders in the strongest possible light.

Why Use a Mortgage Broker If You're Self-Employed?

The reality is, not every bank will treat self-employed borrowers equally. Some lenders may reject applications from businesses less than two years old, or require inflated down payments, even if your financials are solid.

That’s where we come in.

At Home Mortgage Care, we:

  • Work with Canada’s leading A lenders who are open to self-employed borrowers 
  • Know how to package your income, taxes, and bank statements effectively
  • Advise you on how to maximize your approval potential
  • Help you access competitive interest rates, even with limited business history
  • Support you every step of the way with clear, honest communication

We don’t just submit your application, we advocate for you.

Real People. Real Results.

We’ve helped many newly self-employed individuals get into homes faster than they thought possible. Whether you’re a consultant, tradesperson, freelancer, or small business owner, we understand the challenges and the solutions.

Even with just one year of business history, if you have the income to support your mortgage and can show it on paper, you have real options.

Let’s Talk About Your Mortgage Goals

If you’re self-employed with a newer business and wondering whether you qualify for a mortgage, don’t hesitate to ask us.

Your income and business are valid. With proper preparation and the right team behind you, you can get into your dream home sooner than expected.

Book a free consultation with us at Home Mortgage Care and let’s explore your path to homeownership.

We’ll review your income, guide you on documentation, and show you what’s truly possible even if your business is still in its early days.