Self-employed and thinking about buying a home?

Here are the 7 most important things to know if you run your own business and want to qualify for a mortgage ⬇️

1️⃣ Plan 1–2 years ahead

If you plan to buy or refinance, start early.

A lenders look at your two-year average income, so heavy write-offs can hurt your approval.

Plan your taxes strategically.

2️⃣ Use a professional accountant

Many lenders now REQUIRE that self-employed taxes be prepared by a CPA, not DIY software.

It builds credibility and avoids red flags.

3️⃣ Keep income consistent

Lenders want stable or increasing income.

Seasonal dips or time off can impact your 2-year average.

If your latest year is higher, some lenders will use that number — but only if it’s trending up.

4️⃣ Use a self-employed income program

“Stated income” isn’t the public term anymore, but the programs still exist under stronger rules.

Lenders may qualify you using:

✔️ industry-standard income

✔️ 6–12 months of bank deposits

✔️ proof of business activity

✔️ experience in your field

Great option if you have strong cash flow but large write-offs.

5️⃣ Credit matters more than ever

If you’ve had a bankruptcy or consumer proposal:

✔️ 2 years of re-established credit required

✔️ no missed payments

✔️ low utilization

✔️ demonstrated financial stability

Your credit profile carries extra weight because income is harder to verify.

6️⃣ B lenders offer more flexibility

Perfect for business owners who:

✔️ write off a lot

✔️ have fluctuating income

✔️ need bank-statement qualification

Updates:

• 6–12 months of bank statements required

• GST/HST must be up to date

• business licence verification is mandatory

Rates and fees are higher, but access is easier.

7️⃣ Private lending is still available

Good short-term solution if:

✔️ your business is new

✔️ credit needs rebuilding

✔️ income isn’t yet provable

✔️ closing is time-sensitive

Private lenders now require an exit strategy and more documentation.

Use for 1–2 years, then move into A or B lending when income improves.

💡 Final Thought

Self-employed Canadians can qualify for a mortgage — it just takes the right plan, the right documents, and the right strategy.

If you’re self-employed and planning to buy or refinance, message The Frontline Mortgage Group.

We can help you understand your options and create a plan that works for your business and your goals. 💬