If you’re self-employed, you already know that securing a mortgage can feel like a daunting task. Whether you’re a gig worker, freelancer, or small business owner in Calgary, proving your income to lenders often comes with more hurdles compared to traditional employees. But here’s the good news: with more Canadians working for themselves, mortgage options for self-employed individuals are growing—and there are plenty of lenders willing to work with you.
So, what’s the best way to get a mortgage when your income isn’t “traditional”? Let’s explore the top 5 mortgage options for self-employed individuals in 2025 and what you need to know to get approved.
1. Stated Income Mortgages: Simplicity for Gig Workers
One of the most popular options for self-employed individuals is a stated income mortgage. These mortgages allow you to declare your income based on reasonable estimates, rather than relying solely on traditional proof like T4 slips. Lenders will often look at factors like your bank statements, invoices, or financial history to verify your ability to pay.
Who’s it good for?
This option is ideal for gig workers or freelancers whose income fluctuates or doesn’t appear “steady” on paper.
Pro Tip: Be prepared to make a higher down payment (often 10-20%) and pay slightly higher interest rates since stated income mortgages are seen as higher risk by lenders.
2. Alternative Lenders: Flexible Approval for Self-Employed
Mainstream banks aren’t your only option. Alternative lenders (also known as “B lenders”) specialize in helping self-employed individuals secure mortgages. These lenders are more flexible with income verification and often consider other factors, like your credit score and overall financial stability, instead of relying solely on your income documents.
Who’s it good for?
If you’ve been turned down by a traditional bank, alternative lenders can be a lifeline for getting the financing you need.
Pro Tip: Be aware that alternative lenders often charge higher interest rates than big banks, so shop around for the best deal.
3. Business-for-Self Mortgages: Tailored for Entrepreneurs
A business-for-self mortgage is specifically designed for entrepreneurs and small business owners. With this type of mortgage, lenders assess your financial situation differently, often looking at your business income and expenses rather than your personal income alone.
Who’s it good for?
Small business owners or incorporated professionals who reinvest most of their income into their business or have significant business write-offs.
Pro Tip: Some lenders may require proof of self-employment for at least two years, so having your business records in order is crucial.
4. Insured Mortgages with CMHC or Sagen: Affordable Options for Lower Down Payments
Did you know that even self-employed individuals can qualify for insured mortgages through Canada Mortgage and Housing Corporation (CMHC) or private insurers like Sagen? These programs allow you to get a mortgage with as little as 5% down, provided you meet the qualification criteria.
While self-employed borrowers might need to provide additional documentation, such as Notice of Assessments (NOAs) for the past two years, these programs offer a great way to secure a lower down payment mortgage with competitive rates.
Who’s it good for?
First-time homebuyers or those without a large down payment saved up.
Pro Tip: Make sure your taxes are up-to-date since lenders will want to see NOAs to confirm your income.
5. Private Mortgages: Short-Term Solutions for Challenging Cases
If your credit score is low or your income is hard to verify, private mortgages might be an option. Private lenders don’t follow the same rules as banks or alternative lenders, so they can be more flexible with approval criteria. However, private mortgages are typically short-term (1-2 years) and come with higher interest rates and fees.
Who’s it good for?
Anyone who needs a temporary solution while they work on building stronger financials or creditworthiness.
Pro Tip: Use a private mortgage as a bridge to get into the housing market, but make a plan to refinance with a more affordable option down the line.
Key Tips for Self-Employed Borrowers
Now that you know the top mortgage options, here are a few extra tips to help you get approved:
- Organize Your Financial Documents: Be prepared to provide Notice of Assessments (NOAs), bank statements, and proof of self-employment (e.g., contracts, invoices, or incorporation papers).
- Save for a Larger Down Payment: The more you can put down, the better your chances of approval—and the lower your interest rate will be.
- Boost Your Credit Score: Lenders look at credit scores to gauge risk, so pay down debts and ensure your credit report is clean before applying.
- Work with a Mortgage Broker: A broker can help you find the best lender and product for your unique situation. They often have access to alternative and private lenders that aren’t available to the general public.
- Keep Your Taxes Up to Date: Lenders want to see that you’re in good standing with the CRA, so make sure your taxes are filed and any outstanding balances are paid off.
Key Takeaways
Finding the right mortgage as a self-employed individual in Calgary doesn’t have to be stressful. From stated income mortgages to private lenders, there are plenty of options designed to fit your unique financial situation. The key is understanding what each option offers and being prepared with the right documentation to support your application.
Still feeling overwhelmed? Contact us today to explore mortgage options tailored to self-employed individuals. We’ll help you navigate the process and get one step closer to your dream home.
