If you run your own business in British Columbia, getting approved for a mortgage can feel like an uphill battle. Banks often look at your net income after deductions — which, for smart business owners, is usually much lower than what you actually earn.
The good news? As mortgage brokers who work with 30+ lenders, we see self-employed clients get approved every week. Here is exactly how it works in 2026.
Why Banks Make It Hard for Self-Employed Borrowers
Traditional lenders (the big banks) use your Notice of Assessment (NOA) and T1 Generals to determine income. If you wrote off $40,000 in business expenses last year, the bank only sees your declared net income — not the $150,000 that actually flowed through your business.
This creates a qualification gap. You can clearly afford the mortgage payments, but the numbers on paper do not reflect your true earning power.
Alternative Documentation Programs
Several lenders in our network offer programs specifically designed for self-employed Canadians:
- Stated Income Programs: Declare your reasonable income and provide 12 months of bank statements to prove cash flow. No NOA required in some cases.
- Bank Statement Programs: Lenders review 6-12 months of business bank deposits to calculate your average monthly income.
- Add-Back Programs: Certain business deductions (like vehicle, home office, depreciation) are "added back" to your declared income to increase your qualification amount.
- Gross Revenue Programs: Some B-lenders and private lenders underwrite based on gross business revenue rather than net income.
What You Need to Qualify
While every lender has different requirements, here are the general documents you should prepare:
- 2 years of T1 Generals and Notices of Assessment
- Business license or articles of incorporation (must be active for 2+ years)
- 6-12 months of business bank statements
- Most recent financial statements (if incorporated)
- Proof of GST/HST registration (if applicable)
- A letter from your accountant confirming business viability
Down Payment Requirements
For stated income or alternative documentation programs, most lenders require a minimum 10% down payment (compared to 5% for salaried borrowers). Some programs may require 15-20% down depending on the property type and your credit profile.
The higher down payment offsets the perceived risk from non-traditional income verification.
Interest Rates for Self-Employed
Here is the reality: if you qualify through a traditional (A-lender) stated income program, your rate will typically be only 0.10-0.25% higher than conventional rates. That is a small premium for the flexibility.
If you need to go through a B-lender or private lender, rates range from 1-3% higher. But these are often short-term solutions — we can refinance you into a better rate once you have built enough equity or can show stronger income documentation.
How We Help Self-Employed Clients in BC
At Echelon7 Mortgages, we have funded hundreds of mortgages for self-employed borrowers across Richmond, Vancouver, Burnaby, Surrey, and all of BC. Our process:
- We review your full financial picture — not just what CRA says.
- We match you to the right lender from our 30+ partner network.
- We handle all the paperwork and lender negotiations.
- We find the lowest rate available for your specific situation.
Ready to Get Started?
If you are self-employed and thinking about buying a home, renewing, or refinancing in BC, reach out for a free consultation. We will tell you exactly what you qualify for — no obligation, no pressure.