Mortgage Blog

Self-Employed Mortgage in Montreal | How to Qualify and Get Approved By Yelena Markus Mortgage Broker — Helping Self-Employed Montrealers Become Homeowners

October 22, 2025 | Posted by: Yelena Markus

Introduction

According to Statistics Canada, more than 2.6 million Canadians are self-employed, representing about 15% of the national workforce. In Montreal, this growing group includes freelancers, contractors, consultants, and small business owners who enjoy independence and flexibility — but often face more obstacles when trying to buy a home.

Getting approved for a self-employed mortgage in Montreal is absolutely possible — it just requires understanding what lenders look for and how to prepare your documents strategically.

This guide by Yelena Markus Mortgage Broker explains everything you need to know about qualifying for a mortgage when you’re self-employed, including documentation, income proof, down payment rules, and your best lender options.

Key Takeaways

✅ Self-employed mortgages are designed for entrepreneurs and freelancers who don’t earn traditional salaried income.
✅ Approval criteria vary between A lenders (banks), B lenders (alternative institutions), and private lenders.
✅ Most prime lenders require at least two years of stable, verifiable income.
✅ Even if your income is hard to document, Yelena Markus Mortgage Broker can help you find the right lender and structure.

What Is a Self-Employed Mortgage?

A self-employed mortgage is a home loan specifically tailored for people who own or operate their own business or earn variable income. Instead of relying on pay stubs and T4s, lenders assess your business financials, deposits, and tax filings to determine affordability.

In Montreal, lenders typically categorize self-employed applicants into four groups:

1. Sole proprietors with at least two years of verifiable, taxed income.

2. Sole proprietors without verifiable income.

3. Incorporated individuals with at least two years of qualified income.

4. Incorporated individuals without verifiable income.

Qualifying for a Mortgage When You’re Self-Employed

Your qualification depends largely on how long you’ve been in business and how consistent your income is.

Typical Requirements

• Sole proprietors (verifiable income): 2 years of T1 Generals and Notice of Assessments (NOAs).

• Sole proprietors (non-verifiable income): 6-12 months of consistent business deposits.

• Incorporated (qualified income): 2 years of business financial statements and T1s.

• Incorporated (stated income): At least 6-12 months of deposit history or signed contracts showing income continuity.

How Much Can You Borrow as a Self-Employed Buyer in Montreal?

If you can verify your income, you can finance up to:

• 80% of the property’s value (without default insurance)

• 95% with default insurance

Your approval and rate depend on your declared income, down payment, and credit profile. Yelena Markus Mortgage Broker can compare options across multiple lenders — from big banks to B and private lenders — to find the right fit.

Self-Employed Mortgage Insurance in Canada

When You Can Prove Income

If you can show income through your T1s and NOAs, you can access standard mortgage insurance with:

• CMHC, Sagen, or Canada Guaranty

• Minimum 5% down payment (up to $500,000 purchase price)

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Insurance premium rates:

When You Cannot Prove Income

If your income isn’t fully declared or is inconsistent, private insurers like Sagen and Canada Guaranty offer “Business-for-Self” programs. These allow you to qualify with alternative documents such as invoices, bank deposits, or contracts.

Required Documents for a Self-Employed Mortgage

To qualify, be prepared to provide:

• 2 years of T1 Generals and NOAs

• Articles of Incorporation or Business Number registration

• Recent bank statements (personal and business)

• Financial statements signed by an accountant

• Business license or contracts showing ongoing revenue

•  

Having clean, up-to-date financials helps lenders assess your stability and boosts your approval chances.

Lender Options for Self-Employed Mortgages

A Lenders (Banks)

• Require strong income documentation and good credit.

• Offer lowest rates, but strict stress test applies.

B Lenders (Alternative)

• More flexible with documentation and credit.

• Ideal for incorporated or commission-based professionals.

• Higher rates but easier approval.

Private Lenders

• Short-term solutions for borrowers who need quick funding or have limited proof of income.

• Higher rates, usually temporary until you qualify for an A or B lender.

Yelena Markus Mortgage Broker partners with all three lender types — helping you move from a temporary private or B mortgage to a prime mortgage as your financials strengthen.

What Is a Stated-Income Mortgage?

A stated-income mortgage allows self-employed borrowers to “declare” income instead of proving it through traditional documentation. Lenders accept a reasonable income statement based on your industry average and credit strength.

These loans usually require:

• At least 20% down payment

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Why Work With Yelena Markus Mortgage Broker

Navigating the mortgage process as a self-employed buyer in Montreal can be complex — but with the right guidance, it becomes simple and stress-free.

As a licensed mortgage broker and real estate professional, Yelena Markus:

• Understands how to present your self-employed income effectively

• Has access to A, B, and private lenders across Quebec

• Helps you minimize rates and maximize approval

• Guides you through documentation and tax considerations

• Simplifies communication with underwriters and lenders

Final Thoughts

Being self-employed should never stop you from achieving homeownership. With the right structure, documents, and broker guidance, you can confidently buy your dream home in Montreal — even without traditional income slips.

Contact Yelena Markus Mortgage Broker today for a free consultation on your self-employed mortgage options in Montreal.

 Frequently Asked Questions About Self-Employed Mortgages

Expert answers from Yelena Markus Mortgage Broker – Montreal’s trusted advisor for self-employed buyers.

Can I qualify for a mortgage if I recently became self-employed?

Yes, it’s possible to get approved for a mortgage even if you’re newly self-employed and don’t yet have two full years of business history. Lenders will look at the overall strength of your financial profile rather than just your tax returns.

If you can show strong credit history, healthy savings, consistent bank deposits, signed contracts, or proof that you’ve purchased an established business, your file can still be approved. Having experience in the same or a related industry before becoming self-employed also strengthens your case.

Yelena Markus Mortgage Broker can help present your file to the right lender — whether it’s a traditional bank (A lender) or a more flexible B or private lender — to maximize your approval chances.

How much can I borrow if I’m self-employed?

Your borrowing power depends on your income documentation and down payment.

• If you can verify your income through tax filings and Notice of Assessments (NOAs), you may qualify for up to 95% financing with mortgage default insurance, or 80% without insurance.

• If your income is harder to prove, alternative lenders allow financing up to 80% of the property value with specialized self-employed mortgage programs.

Working with Yelena Markus Mortgage Broker, you’ll receive personalized guidance on which option suits your income type, whether you’re a freelancer, incorporated professional, or small business owner in Montreal.

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