Mortgages for Self-Employed

Built Different? So Should Your Mortgage Strategy.

Running your own business means freedom—but when it comes to securing a mortgage, it can also mean added complexity. At Better Mortgages, we know the path to homeownership looks different when you’re self-employed. That’s why we tailor your mortgage process to match how you actually earn.

Whether you’re incorporated, a sole proprietor, or somewhere in between, we’ll help you access lending options that make sense for your situation—without the stress of jumping through unnecessary hoops.

Your Income Looks Different. So Should Your Mortgage Plan.

Unlike salaried applicants, self-employed Canadians often don’t have the kind of income documents that traditional lenders want to see. But that doesn’t mean your options are limited. In fact, our mortgage specialists know how to present your financials in the best possible light, opening the door to competitive mortgage products—even if your income isn’t verified the “standard” way.

Thanks to our strong lender relationships, including with insurers like Sagen, we can offer access to flexible Business-for-Self mortgage programs that may require as little as 10% down (depending on your profile and credit).

Need more flexibility? With a larger down payment—20% or more—we can explore even more creative solutions with fewer restrictions, often without the need for mortgage default insurance.

Common Requirements for Business-for-Self Mortgages

Every situation is reviewed individually, but here’s what lenders typically look for in self-employed applications:
  • Strong credit history
  • At least 2 years of self-employment or business ownership
  • Income must be stated reasonably, based on the nature of your work and expenses
  • At least 5% of your down payment must be from your own savings
  • Proof that your income taxes are up-to-date
  • Additional documentation may be requested depending on the lender

We’ll help you gather the right paperwork and prepare a file that gives you the best shot at approval—and the best possible rate.

Understanding Sagen’s Business-for-Self (Alt. A) Program

This insured mortgage option offers a great solution for eligible applicants with non-traditional income verification. Here’s what it offers:

Simplified Payments
Available for purchases and refinances
Access to the Best Rates
Up to 90% financing (only 10% down on approved applications)
Rate and Term Refinance
Competitive insured rates
Build Credit
Slightly higher insurance premiums than standard applications

Mortgage Insurance Premiums

The cost of mortgage insurance is calculated as a percentage of
your mortgage amount, based on your down payment:

LTV Ratio Standard Premium Top-Up Premium
Up to 65% 1.50% 3.00%
65.01% – 75% 2.60% 6.50%
75.01% – 80% 3.30% 7.00%
80.01% – 85% 3.75% 7.50%
85.01% – 90% 5.85% 9.00%

Pro tip: The lower your LTV, the more room we have to negotiate better flexibility and terms
—especially when it comes to stated income.

When the Traditional Route Doesn't Fit
— Alternative Lenders Can

The Better Option for Some Business Owners

Not every self-employed borrower fits neatly into the insurance-backed programs offered by lenders like Sagen. If you’re recently self-employed, reporting lower taxable income, or your business cash flow doesn’t show well on paper, an alternative lender may be a better fit.

Lenders like Home Trust, Equitable Bank, Haventree, and others take a broader view of a borrower’s financial picture. Rather than requiring traditional income verification, they’re willing to evaluate your business’s bank statements to assess your ability to service a mortgage.

This approach is especially helpful for:

Self-employed borrowers with strong gross business revenue but low net income
Individuals who’ve been in business for less than two years
Applicants with past credit challenges but strong recent financial performance
Entrepreneurs looking to purchase, refinance, or consolidate debt

In fact, according to industry data, nearly 1 in 5 self-employed borrowers in Canada now use an alternative lender like Home Trust or Equitable Bank to secure their mortgage—often because their profile doesn’t align with the rigid standards of the Big 6 Banks.

At Better Mortgages, we work with all major alt-lenders and know which ones are most favorable for your specific industry or business model. We’ll build your case, walk you through the trade-offs (such as slightly higher rates or fees), and ensure you’re getting a product that works in the real world—not just on paper.

Let’s Talk Strategy

Getting started is simple. You can:
  • Reach out to a Better Mortgages specialist directly
  • Start a conversation online through our live chat
  • Or begin with our easy pre-approval application
We’ll take care of the details so you can get back to running your business.

Why Work With Better Mortgages?

You’re already managing your business. We make sure the mortgage side of things doesn’t become another job. Our award-winning team has helped hundreds of entrepreneurs, consultants, and self-employed professionals get approved and save thousands over the life of their mortgage.

We’ll match you with the right lender, break down the numbers, and guide you from start to close—with real advice, no fluff, and no surprises.