Your income is real. The bank just can't see it their way.
Self-employed borrowers often have solid equity and real earnings capacity, but bank documentation requirements don't accommodate how business income works. Private lenders can assess your situation differently.
Is This Right For You?
When alt-doc lending makes sense
- You're self-employed and your declared income on your T1 doesn't reflect your actual earnings capacity
- You've been operating your business for less than two years and banks won't consider your file
- Your income is seasonal, commission-based, or variable and doesn't fit bank averaging models
- You own rental properties and your income includes rental receipts that banks discount heavily
- You've recently incorporated and your personal income is lower during the transition period
- You need to close quickly and can't wait for a bank's extended self-employment income review
Typical Terms Overview
Rates shown are indicative ranges for general information only. Your actual rate will depend on property type, location, loan-to-value ratio, borrower profile, and other underwriting factors. Rates are subject to change without notice.
The Process
How alt-doc mortgage approval works
We focus on building the strongest possible picture of your income and financial situation for the right lender.
Income picture review
We review your complete financial picture — T1 Generals, business financials, bank statements, Notice of Assessments, and any other documentation that supports your income and stability.
Stated income structuring
Many private lenders use stated income with supporting context rather than strictly verified income. We help you present your income position credibly with available documentation.
Property-based underwriting
Private lenders weight the property equity more heavily than income. A strong equity position with a credible income story is often sufficient for approval.
Commitment, legal, and funding
Once a lender is confirmed, you receive a written commitment, your lawyer reviews documents, and the mortgage is funded on the agreed closing date.
Approval Factors
What lenders assess for self-employed borrowers
Loan-to-value ratio
Lower LTV reduces lender risk and is particularly important for self-employed borrowers. The stronger your equity position, the more flexible lenders can be on income documentation.
Business longevity
Two or more years of self-employment history with consistent income shows business stability. Newer businesses are harder to document but not automatically disqualified.
Supporting documentation
Business bank statements, GST/HST filings, a letter from your accountant, and recent contracts or invoices all strengthen a stated income application. More documentation is always better.
Credit profile
Credit is reviewed. A self-employed borrower with good credit and lower income documentation has more options than one with both compromised credit and limited income verification.
Industry and business type
Established industries with predictable revenue cycles are more straightforward than new or highly variable businesses. Lenders want confidence in your ability to service the debt.
Common Questions
Self-employed mortgage FAQ
Why do banks decline self-employed mortgages?
Banks require verifiable, documented income that meets specific thresholds. Self-employed borrowers who write off significant business expenses reduce their declared income on paper, which fails bank stress tests even when the business is profitable. Private lenders take a more holistic view.
What is 'stated income' lending?
Stated income lending allows a borrower to declare their gross income without full third-party verification. It doesn't mean no documentation — lenders still want supporting evidence (bank statements, GST filings, accountant letter). It means the underwriting is more flexible about what constitutes proof of income.
Can I qualify if I've only been self-employed for one year?
Possibly, depending on the situation. If you have a strong prior employment history in the same field, solid equity, and good credit, some private lenders will consider a shorter self-employment history. Discuss your specific situation with your broker.
Will a private mortgage help me eventually qualify at a bank?
That's often the goal. A 1–2 year private mortgage gives you time to build additional self-employment history, maintain your credit, and document your income in the way banks require. Many clients use private financing as a bridge to conventional qualification.
What documentation should I prepare?
Bring the last 2 years of T1 Generals and Notices of Assessment, your most recent business financial statements, 3–6 months of business and personal bank statements, and if available, your most recent GST/HST returns. Additional documents like signed contracts or client invoices can be helpful for newer businesses.
Self-employed doesn't mean unqualified.
Tell us about your situation and income picture. We'll find out what private lenders can offer and be direct with you about the costs.