Real financing options for people who write off their income.
If you own your business, contract, or earn on commission, your tax return doesn't tell the whole story. Between traditional A-lender underwriting, insurer-backed Business-for-Self programs, and Alt-A bank-statement lending, there's almost always a fit — it just has to be packaged the right way.
The three lending paths
If your 2-year average line-15000 income supports the mortgage on paper, we go straight to a bank or monoline at the best rates. Full documentation, best pricing.
Insurer-backed Business-for-Self programs (Sagen, CMHC, Canada Guaranty) originated through A-lenders. Insured only — max 90% LTV, purchase price ≤ $1.5M, income must be reasonable for the business.
Bank-statement programs that qualify off 12 months of business deposits. Rates run roughly 1.5–3% higher than A, with a ~1% lender fee — used as a bridge back to A-lending in 12–24 months.
Documents required
The stronger your paper trail, the more lender options open up. Bring what you have — we'll build the file around it and tell you exactly which lender path (A, insured BFS, or Alt-A bank-statement) fits.
Select the category that best describes your income:
- T1 Generals for the last 2 years — all pages, all schedules
- Notices of Assessment (NOAs) for the last 2 years
- Statement of Business Activities (T2125)
- CRA Statement of Account confirming no tax arrears
- Business licence or GST/HST registration (2+ years in business preferred)
Line 15000 (total income) from your NOAs is what A-lenders use to qualify.
- Two pieces of government-issued ID (one photo) for each borrower
- SIN (for credit bureau consent — not written on any documents)
- Current residential address and 3-year address history
- Complete bank/investment statements for the last 90 days — every page, name/account/institution visible
- Source and paper trail for any large deposits over $1,000
- If gifted: signed gift letter from an immediate family member plus proof the gift landed in your account
- If from RRSP (Home Buyers' Plan): most recent RRSP statement and HBP withdrawal form (T1036)
- If from sale of a property: firm sale contract and estimated net proceeds statement
Every dollar of your down payment and closing costs has to be sourced. Undocumented deposits are the #1 cause of last-minute lender conditions.
Send documents as PDFs or clear photos. Everything is transmitted through the secure DLC portal — nothing sensitive over email.
A quick note on "stated income"
"Stated income" gets used loosely in Canada, and it's worth being precise. There is no A-lender program that lets a self-employed borrower simply declare a higher number to qualify — full-doc uninsured deals require traditional income proof, period.
What people usually mean by "stated income" today is one of two very specific things:
- Insurer Business-for-Self programs (Sagen, CMHC, Canada Guaranty) — an insured product that allows a reasonable stated income for self-employed borrowers who can't fully document via T1s. Delivered through A-lenders at A-lender rates, but tied to mortgage insurance and its rules.
- Alt-A bank-statement programs at B-lenders — qualifying income is built from 12 months of business deposits rather than tax returns.
Insured Business-for-Self (Sagen / CMHC / Canada Guaranty)
This is the closest thing Canada has to a mainstream "stated income" mortgage — and it lives with the mortgage insurers, not the banks themselves. Because it's insured, the standard high-ratio rules apply:
- Minimum 10% down (max 90% LTV)
- Purchase price cap of $1.5M (as of the 2024 insured-mortgage changes)
- Owner-occupied, primary residence only
- At least 2 years of business ownership, arm's-length confirmed
- Strong credit profile (typically 680+)
- Stated income must be reasonable for the industry, business size, and length of operation — this is a reasonability test, not a self-declaration
- Insurance premium applies on top of the mortgage (as with any high-ratio deal)
- Stress test still applies — qualifying rate is the higher of contract rate + 2% or 5.25%
Delivered at A-lender rates through banks and monolines that participate in the insurer program. If you have 20%+ down and want to go uninsured, this program is not available — you're back to full-doc A-lending or Alt-A.
Bank-statement / Alt-A programs (B-lender)
Qualifying income is derived from 12 months of business bank deposits (typically 50–100% of deposits, depending on business type). Great for owners who legitimately expense a lot and show low line-15000 income, especially on uninsured refinances or purchases above the $1.5M insured cap. Expect:
- Rates roughly 1.5–3% above A-lender rates
- ~1% lender fee (usually rolled into the mortgage)
- 1–3 year terms — used as a bridge, not a destination
- Minimum 20% down for purchase, 20% equity for refinance
- Credit flexibility down to ~600, sometimes lower with a story
Private lending (last resort). When B-lenders can't fit, private 1st or 2nd mortgages exist for short-term situations — bruised credit, tax arrears, or a construction gap. Rates and fees are meaningfully higher; we only recommend it with a clear 12-month exit plan back to a lower-cost lender.
The plan is always to graduate
If we start you on a B-lender, we're already planning the switch to an A-lender at renewal. That usually means cleaning up credit, filing an updated set of taxes, or building 12 more months of clean deposits. You shouldn't stay in alternative lending longer than the situation requires.
Start with a conversation.
No credit pull, no pressure. Applications never trigger a credit check without your explicit consent.