Financing · Self-employed · 2026
Self-employed does not mean B lender or a higher rate, if the file is built a year ahead. Here is how lenders compute your income, the three possible routes and what sets them apart.
A self-employed worker, an incorporated professional or a commissioned salesperson can get a mortgage at the same rate as an employee, provided they prove their income differently: bank ("A") lenders take the average of the last two years' net income according to the notices of assessment, sometimes with a 15% gross-up or add-backs for depreciation and non-recurring expenses, and require that the last year not be sharply down and that taxes be paid. For net declared income too low relative to revenue, insurers and some lenders offer stated-income programs with 10% to 35% down, two years in business and good credit; alternative ("B") lenders accept six to twelve months of business bank statements with 20% down, at a higher rate and 1% to 2% in fees. The documents: notices of assessment and T1 returns (and T2 if incorporated) for the last two years, financial statements, 6 to 12 months of business statements, proof of registration or incorporation, confirmation that income tax and GST/QST are up to date. The file is prepared twelve months before the purchase: declaring more income one year costs tax but can be worth $100,000 of borrowing capacity.
| Route | Income used | Down payment | Rate | Conditions |
|---|---|---|---|---|
| Bank lender, verified income | Two-year average of net income (line 15000 or net business income), plus allowed add-backs (depreciation, one-time expenses, sometimes +15%); if the last year is lower, it is the one that counts | 5% and up | Market rate (4.24% fixed, 09/04/2026) | 2 years in business, taxes paid, healthy credit |
| Stated-income program (insurer or A lender) | Income "reasonable" for the trade and the revenue, declared and documented by statements and invoices | 10% to 35% depending on the insurer and lender | Market to slightly higher, higher insurance premium | 2 years in business, high credit score, no tax arrears |
| Alternative ("B") lender | 6 to 12 months of business bank deposits, minus a percentage for expenses | 20% and up | 1% to 3% higher, 1% to 2% in fees | 1 to 2 year term, then back to an A lender |
| Incorporated, paid by salary or dividends | Like an employee (T4) or by dividends (T5) over 2 years; the corporation's retained earnings can count at some lenders | 5% and up | Market | 2 years of stable or rising T4/T5 |
T1 (and TP-1) returns for the last two years with federal and provincial notices of assessment; the business income statement (T2125) or financial statements and T2 if incorporated; 6 to 12 months of business bank statements; proof of registration with the Registraire des entreprises or articles of incorporation; confirmation that income tax, instalments and GST/QST are up to date (a balance owing to Revenu Québec blocks most A lenders); recurring contracts or invoices; down payment documented for 90 days. If your declared net income is low because you deduct a lot, decide a year before the purchase: declare more (more tax, more capacity) or aim for a stated-income program with 10% or more down.
Changing status (employee to self-employed) less than two years before the purchase resets the clock at most A lenders; a sharply lower year makes the lowest one count; undeclared cash income never counts; car and home-office expenses that reduce net income reduce borrowing capacity by as much (every $10,000 of net income less removes about $45,000 to $50,000 of loan at the stress rate). A salaried co-borrower, often the spouse, settles many files.
Yes, with two years of sufficient declared net income according to the notices of assessment and healthy credit, at the same rate as an employee.
Two years at bank lenders and for stated-income programs; six to twelve months of statements at an alternative lender.
A stated-income program with 10% to 35% down, a salaried co-borrower, or declaring more in the year before the purchase.
At most bank lenders, yes until it is settled; some alternative lenders finance the tax repayment within the loan.
To run your own numbers: the commission calculator, our fees and the mortgage calculator. French versions are linked below.
The Loaa & Manseur team, led by Lotfi Manseur and Loaa Al Daow, is the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 of large residential teams according to the official RE/MAX ranking, computed on actual transactions. Its Google profile counts 221 reviews with a 4.9 rating. Its offices are at 55 avenue de l'Équinoxe in Brossard, one bridge from the island, and every broker's licence can be checked in the OACIQ public register. Three things to verify yourself before calling us, and to demand of any other broker.
Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.