Self-Employed Mortgage Broker in Vancouver, BC
Most lenders qualify a self-employed Vancouver buyer on the average of the last 2 years of personal income on their tax returns. For many business owners that number sits well below what the business earns, because good tax planning lowers it. There are 3 ways a lender can read your income, and which one fits decides your down payment and your cost to borrow.
How do lenders calculate self-employed income for a mortgage?
Most lenders take line 15000 from your last 2 T1 General returns, confirm it against your Notices of Assessment, and average the 2 years. If your income dropped in the most recent year, many lenders use the lower year instead of the average.
- Year 1 income on line 15000: $62,000
- Year 2 income on line 15000: $78,000
- Average most lenders use: $70,000
Flip the years ($78,000 then $62,000) and many lenders qualify you on $62,000, because a falling trend reads as risk. Some lenders add back costs on your return that didn't take cash out of your pocket, like depreciation on equipment or the business-use-of-home deduction. Those add-backs vary by lender, so the same tax return can produce different qualifying incomes at different banks.
What is a stated income mortgage in BC?
A stated income mortgage lets you declare an income that's reasonable for your business, instead of proving it line by line from your tax return. The insured version is offered through programs like Sagen's Business for Self, which goes up to 90% of the home's value.
The insurer judges the stated income against the type of business, its size and how long it's been running. You'll need at least 2 years self-employed, and commission earners are excluded. On a Vancouver West apartment at the $774,900 benchmark, 10% down is $77,490, and the rest can be an insured mortgage that some lenders price close to a standard file. The insurance premium on these programs can be higher than on a regular insured mortgage, so price both routes.
We wrote up how this works in more detail in stated income mortgages in BC.
How does a bank statement mortgage work in Canada?
An alternative lender looks at the deposits flowing through your business bank account over recent months and qualifies you on that, which helps when your tax returns are thin or you've been in business under 2 years. Expect a larger down payment, a higher cost and a shorter term.
These mortgages are built as a bridge. The plan is to hold one for 1 or 2 terms while your tax returns catch up with what the business earns, then move to a regular lender at renewal. Going in with that exit mapped out is what keeps the higher cost temporary.
Which self-employed mortgage option should I use in Vancouver?
Start with the standard 2-year average and only move down the list when it falls short. Each step trades a lower paperwork bar for a higher down payment or cost.
| Route | How your income is shown | Down payment | Fits when |
|---|---|---|---|
| Standard lender | 2 years of tax returns and Notices of Assessment | Same as any buyer (from 5%) | Your returns support the price |
| Insured stated income | An income that's reasonable for your business, 2+ years in business | From 10% | The business earns more than your returns show |
| Alternative lender | Business bank statements | Larger, set by the lender | Under 2 years in business, or a complex file |
At Vancouver prices the gap between tax-return income and the income a lender needs is wide. The composite benchmark for Metro Vancouver was $1,081,900 in August 2026, so a self-employed buyer often needs the second or third route even with a healthy business.
Should I report more income to qualify for a bigger mortgage?
Sometimes, and it's worth modelling with your accountant about 2 years before you plan to buy. Paying tax on more income costs money now, and it can open a standard lender with a lower down payment and lower cost later.
Put the 2 numbers side by side: the extra tax over 2 years, and the difference in down payment and borrowing cost between a standard mortgage and a stated income or alternative one. If you're incorporated, how you pay yourself (salary or dividends) also changes what shows on line 15000.
What documents do self-employed borrowers need in Vancouver?
For a standard lender, expect your last 2 T1 Generals and Notices of Assessment, proof you owe nothing to the Canada Revenue Agency, and your business registration or articles of incorporation.
- 2 years of T1 General returns and Notices of Assessment
- Proof that personal taxes are paid in full
- Business licence, registration or articles of incorporation
- Company financial statements if you're incorporated
- Recent business bank statements for an alternative lender
- 90 days of history showing where your down payment came from
Having these ready before you look at homes shortens the approval. Flow's B.O.S.S. framework walks through them in order.
Frequently asked questions
Can I get a mortgage with less than 2 years of self-employment?
- Some lenders will, especially if you stayed in the same line of work before going out on your own. Insured stated income programs need 2 years, so a newer business usually starts with an alternative lender.
Do lenders count dividends from my corporation?
- Yes, dividends and salary you pay yourself show on your personal return and count toward the 2-year average. Some lenders also look at the company's retained earnings, which varies by lender.
Will taxes owing to the CRA stop my mortgage?
- Most lenders want personal taxes paid in full before closing, because the CRA can rank ahead of the mortgage. If you owe, plan to clear it or pay it from the proceeds.
Is a stated income mortgage legal?
- Yes. The income you state has to be reasonable for your business and you sign to it. The insurer and lender can check it against your industry, business size and bank deposits.
Do self-employed borrowers pay more?
- On a standard or insured stated income mortgage, pricing can be close to a salaried borrower's. Alternative lenders cost more and often charge a lender fee, which is why they work best as a short bridge.