Why is it so hard to get a mortgage when you’re self-employed?

Mortgage for self-employed, Toronto, Ontario

By Lucy Gagliardi

More Canadians are working for themselves or on contract these days. With nearly 20% of all income earners in Canada being self-employed (at least part-time), we often wonder why it’s so difficult for this growing demographic to obtain a mortgage.

Many self-employed folks would agree that the greatest advantage to being in business-for-self is the ability to write-off many personal expenses and ultimately pay less income tax. But the not-so-obvious downside is that it can be difficult to prove your income, and after taxes and deductions, you often show less income on your tax return. As a result, you may qualify for a lower mortgage amount, or not qualify at all when it comes to applying for a mortgage.

Did you know that you might still qualify for a mortgage, even if you don’t report much net income on your tax returns?


Posted by Lucy Biocca Gagliardi on Friday, March 2, 2018


Self-employed mortgages are a specific type of mortgage product that is geared toward Canadians who have their own business. Mortgage agents have access to multiple lenders and will negotiate on your behalf. As you’ll see in Lucy’s video, you will need the following documents to get started:

  1. 6 months’ bank statements
  2. Business license or articles of incorporation
  3. Invoices and/or contracts

Remember, just because you’ve qualified for a mortgage in the past, doesn’t mean you will qualify for a mortgage in the future (even if your financial situation has remained the same or gotten better). Mortgage rules have changed and securing mortgage financing can be more difficult. You might also need other supporting documentation such as: proof that your down payment has not been gifted, proof that your HST is paid in full and your personal/business credit scores.

YourMortgageYourWay.ca knows mortgages! We will connect you to the lender most suited to Your Mortgage needs.

Qualifying for a mortgage is getting tougher and if you have poor credit and unable to meet a lender’s requirements to get a mortgage, then getting someone to co-sign your mortgage could be the way to go.

Learn about the ways to co-sign a mortgage:
1. Co-borrower (on title) the same as a spouse or anyone else who you are actually buying the home with.
2. Guarantor (not on title) responsible for the loan should the borrower go into default.

If you have any other questions, give us a call and we’ll walk you through the mortgage process or visit: yourmortgageyourway.ca/get-pre-approved/

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Give us a call  +1 416-640-0930 or send us an email to  info@yourmortgageyourway.ca