Buying a Home with Variable Income: Strategies to Convince Lenders

Catherine Lauzé

Mortgage Broker

Language(s):
French

Whether you're self-employed, a freelancer, an artist, or an entrepreneur, buying a property with fluctuating income can seem intimidating. However, with proper preparation and the right tools, it's entirely possible to convince lenders to approve your mortgage application.

1. Structure Your Finances to Reassure Lenders

Financial institutions primarily want to assess your ability to repay. Here's how to demonstrate your stability:

Present an average income over 2 to 3 years: lenders prefer stable trends.
Separate personal and business accounts: this simplifies the analysis of your financial flows.
Reduce your debts: a good debt ratio is essential for approval.

2. Documents to Support Your Application

Preparing a solid file is key. Here are the items to include:

Your tax assessments from the past two or three years
Your financial statements or monthly bank statements
Your contracts or service agreements if you're a freelancer or consultant
A letter from your accountant confirming the regularity of your income

A mortgage broker can help you gather these documents and present them strategically.

3. Mortgage Products Adapted to Variable Income

Some products are better suited for non-traditional profiles:

Mortgages with flexible payment options
Loans with higher down payments to offset perceived risk
Solutions from alternative lenders who assess the overall file rather than just declared income

It's essential to compare options and understand the long-term implications.

Buying a home with variable income requires a bit more preparation, but it's entirely achievable. By structuring your finances, preparing a complete file, and choosing the right mortgage product, you can confidently access homeownership

Need Personalized Support?

At Planiprêt, we understand the realities of self-employed individuals and non-traditional income. We can help you build a strong file and find the mortgage solution that suits your needs.

TERMS	BANKS	MORTGAGE PLANNERS
1 Year Fixed	7.14%	4.89%
2 Years Fixed	6.69%	4.24%
3 Years Fixed	6.35%	3.94%
3 year closed Variable	6.35%	4.70%
4 Years Fixed	6.29%	3.99%
5 Years Fixed	6.34%	4.04%
5 years Variable	5.40%	3.95%
Refinance Fixed or variable	8.15%	4.14%
7 Years Fixed	6.69%	4.59%
10 Years Fixed	7.14%	5.04%
HELOC	5.70%	5.20%

TERMS

BANKS

MORTGAGE PLANNERS

1 Year Fixed

7.14%

4.89%

2 Years Fixed

6.69%

4.24%

3 Years Fixed

6.35%

3.94%