Yes, it’s possible! The main difference between a salaried employee and a self-employed worker when qualifying for a mortgage lies in how eligible income is determined.


Each situation has its solution:

For salaried employees
Income is confirmed through an employment letter stating the hire date, salary, status (permanent, temporary, full-time or part-time), and job title. A recent pay stub supports this information, including any recent raise.

For self-employed workers
Income is generally based on the average of the last two years of declared income, confirmed by federal and provincial notice of assessments. A 15% increase may sometimes be applied to account for expenses related to a home office or vehicle use.

What if your declared income doesn’t reflect your financial reality?
Some mortgage insurers offer solutions tailored to this situation. They assess the entire file, considering business stability, revenue, professional background, and financial management, rather than relying solely on personal income tax figures.

Common requirements:
- At least 2 years in business
- A good credit score (Beacon score around 650 or higher)
- No outstanding tax balances
- Provide federal and provincial notice of assessments
- A minimum down payment of 10% is often required
- Eligible properties may include up to 4 units, provided a close family member resides in one

New considerations:
- Amortization up to 30 years: Some institutions now allow longer amortization periods, especially for first-time buyers or new constructions.
- Flexibility for new entrepreneurs: Some insurers offer accommodations for those in business for less than 24 months, considering their education, professional experience, and financial capacity.

Another option: Equity-based loan
Some financial institutions may grant a mortgage if you’ve been in business for over 2 years, have impeccable credit, are up to date on taxes, and provide a 35% down payment.

The role of the mortgage broker
Each financial institution applies its own criteria, in addition to those of mortgage insurers. A broker becomes an essential partner to guide you through the process and help you make the right choices.

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Sources

https://www.sagen.ca/fr/produits-et-services/travailleurs-independants/

https://www.cmhc-schl.gc.ca/professionnels/financement-de-projets-et-financement-hypothecaire/assurance-pret-hypothecaire/aph-po-et-petits-immeubles-locatifs/travailleurs-autonomes

https://www.canadaguaranty.ca/fr/avantage-autonome/