Being your own boss has many perks—freedom, flexibility, and full control over your income. But when it comes to applying for a mortgage in Canada, being self-employed can feel like hitting a wall. Lenders often view self-employed income as less predictable, making it harder to qualify under traditional mortgage guidelines.
At Circle Mortgage, we specialize in helping self-employed Canadians navigate these challenges and unlock homeownership with confidence. If you’re a freelancer, contractor, business owner, or entrepreneur, this guide will walk you through smart, actionable mortgage tips designed just for you.
When you work a salaried job, lenders can easily verify your income through T4 slips and pay stubs. But when you're self-employed, your income might fluctuate from year to year, and your deductions—while helpful at tax time—can make your income look lower than it really is.
This can lead to:
But don’t worry—it’s far from impossible. You just need to approach the process strategically.
Before applying, gather at least two years’ worth of financial documentation to prove your income stability. Lenders typically want to see:
Pro tip: Minimize deductions in the years leading up to your mortgage application if possible. The higher your net income appears, the better your chances of approval.
There are two main routes self-employed borrowers can take:
If you have strong credit and consistent income on paper (via tax returns), you can qualify with a traditional lender like a bank or credit union.
If your declared income is lower due to tax write-offs, you may still qualify based on stated income—what you reasonably earn based on your industry and business performance. This option often comes from alternative or B-lenders, and while the interest rates may be slightly higher, the approval process is more flexible.
At Circle Mortgage, we work with a wide range of lenders to match you with the best fit for your income situation.
Your credit score plays a major role in determining not just approval, but the rate you’ll receive. For self-employed applicants, lenders often want to see an even stronger credit profile than they would for salaried applicants.
Smart tips to boost your credit:
While it’s possible to qualify with the minimum 5% down for insured mortgages (on homes under $500,000), self-employed applicants benefit from putting down at least 10% to 20%. A larger down payment shows financial responsibility and reduces lender risk—often unlocking better rates.
Plus, a bigger down payment:
Not all lenders understand the nuances of self-employment, but mortgage brokers like Circle Mortgage specialize in finding lenders who do. We know how to present your income in the best light and access exclusive products that traditional banks don’t offer.
Working with a broker means:
If you have a spouse or partner with a stable income, adding them as a co-borrower can increase your purchasing power. Their income can help balance any fluctuations in yours and improve your overall application profile.
Just make sure both parties understand the responsibilities and risks involved in joint borrowing.
Owning a home is a major milestone—but your mortgage should also align with your long-term financial goals.
Ask yourself:
We’ll help you build a mortgage strategy that grows with your ambitions.
Getting a mortgage as a self-employed Canadian might take a bit more preparation—but it’s absolutely achievable with the right guidance. Whether you're buying your first home, refinancing, or investing, Circle Mortgage is here to support you every step of the way.
We understand self-employed finances and know how to get creative—without compromising your goals.
