Getting a Mortgage in BC When You’re Self-Employed — Without Traditional Income Proof
Being your own boss has its perks, but when it comes time to apply for a mortgage, self-employed borrowers often face one major difficulty providing income proof that banks and credit unions require for a mortgage approval.
Traditional lenders like Banks & Credit Union usually want to see full-time employment income verified with T4 slips, pay stubs, and Notices of Assessment before providing the best mortgage rates. But when you’re self-employed, you may write off business expenses that reduce your reported net income on paper. This can make qualifying for a mortgage tricky — especially if you don’t have conventional income proof.
This Is Why Traditional Lenders Say May No
Most banks follow strict lending guidelines set by federal regulators. They typically require:
- Two years of tax returns and Notices of Assessment
- Business financial statements
- Consistent income history
If you can’t provide these, even if you have strong cash flow or assets, many banks will decline your mortgage application.
How Self-Employed Borrowers Can Still Qualify
Fortunately, there are alternative and private mortgage lenders who understand how self-employed finances work. They can offer what’s called a stated income or no income proof mortgage through alternatie and B-Mortgage lenders. Instead of relying solely on tax returns, they look at:
- Business bank statements showing deposits
- Invoices, contracts, or client payment history
- Credit score and repayment history
- Size of down payment or existing home equity
- Retained earnings
A larger down payment (usually 20% or more) can help offset the lack of income documents. The more equity you have, the more flexible lenders can be.
Benefits of No Income Proof Mortgages
- Qualify based on your real earning power, not just reported net income
- Faster approval process than traditional banks
- Flexible documentation and underwriting
This can be the key to purchasing a new home, refinancing, or tapping into your home equity to grow your business.
Key Considerations
- Interest rates are usually higher than bank rates
- Terms are often shorter (1–3 years)
- You’ll need an exit plan — such as refinancing later when you can show income
Working with an experienced mortgage broker who specializes in self-employed and alternative lending is the best way to find lenders who offer this kind of mortgage.
Final Thoughts
Being self-employed shouldn’t stop you from owning a home. If you don’t have traditional income proof, you still have options. With the right strategy, strong equity, and the help of a mortgage professional, you can secure the financing you need and continue building your future — on your own terms.
For more information and a tailored approach feel free to call or contact us online.
