Ghummaz Bhatti

Ghummaz Bhatti

Effective Ways Self-Employed Individuals Can Get a Mortgage

When you’re self-employed, securing a mortgage can seem daunting at first. It won’t be a typical path you’ll take, but with the help of a skilled mortgage agent and the correct plan, it can be as simple as it gets.

If you’re self-employed, it simply indicates you’re not on a traditional employee payroll, which deducts CPP/EI and income tax every two weeks. Alternatively, you may operate a company and pay yourself a salary, but your wage is contingent on your company earning enough money to pay you.

While securing a mortgage as a self-employed person can be difficult, it is feasible. A dependable mortgage agent can provide related services to guide you on the right practices you should follow. If you’re not ready to commit to an agent yet, below are some useful ways that you can get financing for your mortgage. 

You Can Qualify for a Mortgage with Prime Mortgages

This is calculated using your actual earnings. You may be able to qualify for a mortgage based on how much you actually make provided you have strong credit, manage your debt well, and have at least a 12-month credit history.

Check to see if you’ve paid yourself, stated enough income for the past two years, and submitted your taxes. This is essential to obtaining a Prime Mortgage (A-Lender mortgage). Also, you owe no money to the CRA and are current on all payments.

You Can Qualify for a Mortgage with Stated Income

When you have a solid gross income but have expenses that bring your income below what you need to qualify under the 5x rule, a Stated Income mortgage can help. To qualify for a Stated Income mortgage, lenders add your gross and net incomes together to create an Income Reasonability number.

You Can Get Financing through Alternative Lenders

If you have terrible credit and are self-employed, working with an Alternative Lender (B-Lender) is a possibility. It’s also a good option if you don’t make enough money to qualify the usual way or through stated income.

Because the contracts are usually fixed for one to three years, this type is good as a short-term solution. You’ll be able to work up your finances and credit during this time and then move on to a more regular mortgage after that.

You Can Opt for Credit Union Financing

If you’re self-employed, credit union financing may be the best solution for you. Consider credit unions as a bridge between traditional lenders and alternative lenders. Credit unions are willing to lend on houses worth more than $1 million and do not levy fees. Their interest rates, however, are higher.

You Can Consider Private Lending

After you’ve explored all other options, private mortgages should be your very last resort. It’s advisable to use these only in an emergency. A private lender’s primary purpose is to make money. They are unconcerned with your earnings, taxes, or debt, so they’ll charge you a lot of money for lending, and they’ll be able to close swiftly if you have an emergency.


Speaking with a mortgage agent first is best if you’re self-employed and want to buy a house or condo. It will be best if you can find a fantastic team of mortgage agents and brokers who specialize in self-employed people and are well-versed in all types of lenders. They can help you find the ideal option for your specific situation.

If you’re self-employed and a first-time home buyer in Ottawa, you can trust Ottawa Mortgage Services to guide you through every step of the home-buying process. We are best in providing mortgage agent services for first-time homebuyers, self-employed individuals, and commercial clients. You can also depend on us if you need help with refinancing, pre-approvals, and debt consolidation. Book us for a consultation today!

Contact Ottawa Mortgage Services to learn more

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