Self-Employed Mortgage Options: Unlocking Opportunities
The number of self-employed Canadians remains stable, and with about 2.6 million self-employed people, you can bet some will be coming to you to help finance a mortgage.
You might have two types of self-employed clients walking through your door:
- The first type can demonstrate consistent earnings over time. They will be able to provide traditional income-proving documents, such as accountant-prepared financial statements (profit and loss, balance sheets), T1 Generals, and their Notice of Assessment (NOA).
- The second type may have a lower reported income but are still deemed good candidates for a mortgage. They may have substantial tax write-offs on financial statements but have a strong ability to repay loans due to sustainable business, sufficient gross incomes, and robust cash position.
These two clients have one thing in common—they may have trouble qualifying at a traditional bank with their self-employed income
Underwriting approaches for proving income
We’re all about flexibility. Bridgewater Bank’s Self-Employed Mortgage Suite provides several ways to prove your client’s income, the following two being the most popular.
Your first step is to talk to your Business Development Manager. Before you submit a deal, let us help you determine which of the following approaches will help your client get an approval.
| Alt-Provable Approach | Bank Statment Approach | |
| When to use | When borrowers can provide proof of income for being self-employed through traditional documentation | When borrowers don’t show strong income on company financials but are excellent mortgage candidates |
| Client has |
Confirmation they owe no taxes |
A net business income under $250,000 |
| Benefits |
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Don’t just take our word for it
We know we have great mortgage options for self-employed Canadians, and we’re not the only ones who think so.
“I recently funded my first bank statement file with Bridgewater Bank and let me tell you – it was delightful! The entire process ran smoothly, from underwriting to funding—not only were we able to save our clients thousands of dollars in interest, we were also able to have this file committed, reviewed and closed faster than I thought possible. I would highly recommend Bridgewater Bank for your next bank statement file – you’ll be glad you did!” — Donna Thornton from DLC Forest City
Resources to guide your work:
Income verification information: Find a list of all the documents needed for self-employed clients, including broker resources for both alt-provable and bank statement approaches.
Contact us: Talk to a Business Development Manager before you submit a deal.