Being self-employed offers freedom, flexibility, and the ability to control your income. But when it comes to getting approved for a mortgage, that same freedom can make things complicated. Many business owners, freelancers, and independent contractors take advantage of tax deductions—resulting in low reported income on paper.
Unfortunately, traditional banks rely heavily on tax returns and income statements. This makes it difficult for self-employed Canadians to qualify for a mortgage, even if they are financially stable.
That’s where stated income mortgages come in. These specialized mortgage solutions bridge the gap between business tax efficiency and homeownership.
What is a Stated Income Mortgage?
A stated income mortgage allows self-employed individuals to declare their income instead of strictly proving it through conventional documents like T4s or full CRA tax returns. Instead, lenders evaluate:
Unlike residential home loans, commercial mortgages often have:
- Business registration and license
- Bank statements
- Invoices and contracts
- Reasonability of stated income compared to your profession
- Credit history and repayment habits
This flexible approach recognizes that income for entrepreneurs doesn’t always fit neatly into traditional guidelines.
Benefits of Stated Income Mortgages
- Flexible Income Documentation: No need to rely only on tax filings. Your income can be demonstrated through bank deposits, business activity, or industry averages.
- Easier Qualification: Even if your reported taxable income is low, lenders can still approve you based on stated income, provided it’s realistic for your field.
- Faster Approval Process: Less paperwork and fewer income proofs make the process smoother and faster than a conventional mortgage.
- Credit Flexibility: Insitutional and alternative lenders offering stated income programs are more open to applicants with unique credit histories.
- Competitive Interest Rates: While interest rates may be slightly higher than traditional mortgages, many programs still provide competitive options—especially with a strong down payment and solid credit score.
- Personalized Approach: Every borrower is different. A mortgage broker who specializes in self-employed solutions can customize a program tailored to your needs.
- Transparent Process: With professional guidance, you’ll clearly understand requirements, costs, and long-term implications before signing anything.
Who Can Benefit from a Stated Income Mortgage?
Stated income mortgages are ideal for:
- Business owners who maximize tax deductions
- Freelancers or contractors with fluctuating income
- Commission-based professionals with irregular earnings
- Newly self-employed individuals without two full years of tax filings
- Canadians looking to purchase, refinance, or invest but facing hurdles with traditional lenders
Eligibility Requirements
While requirements vary by lender, most stated income programs in Canada expect:
- Down payment: 20% minimum, depending on the property and program. If you have 5% only, we can introduce share equity program where investor can help you up to 15% downpayment to make it 20%
- Business tenure: At least 2 years of self-employment (some lenders may consider less with strong supporting documents)
- Credit score: Good to excellent credit is strongly recommended
- Supporting documents: Business license, bank statements, or invoices to support the stated income claim
Why Choose Home Mortgage Care?
At Home Mortgage Care, we specialize in helping self-employed Canadians achieve their homeownership goals—even when traditional banks say no.
Here’s what makes us different:
- Experienced Mortgage Advisors – Experts in alternative lending and self-employed mortgage programs.
- Customized Solutions – We work with lenders across Canada to find the best option for your unique situation.
- Transparent Process – Clear communication every step of the way—no hidden surprises.
- Fast Approvals – Streamlined documentation requirements mean quicker results.
The Bottom Line
Being self-employed shouldn’t stop you from owning your dream home. With a stated income mortgage, you can leverage your true financial strength—not just your tax returns—to qualify for the financing you deserve.
At Home Mortgage Care, we’re here to guide you through the process with expertise, transparency, and solutions designed for entrepreneurs like you.
