Self-Employed Mortgage for New Businesses
We help self-employed Canadians get approved for a mortgage — even with less than two years in business.
- Minimum 5% down payment
- Best Rates Available
- Previous Industry Experience
Get Mortgage Help When You Are Newly Self-Employed
Being newly self-employed shouldn’t stop you from becoming a homeowner. Whether you’ve recently left salaried work, started a new business, or are still in your first year of self-employment, you may still qualify for a mortgage — often more easily than you think.
We specialize in helping business owners like you access flexible mortgage programs and income solutions designed specifically for those with less than two years in business.
Do you have questions?
Let’s chat.
Can You Qualify for a Mortgage When You Are Newly Self-Employed?
Yes — you can. Many Canadians assume they need two full years of tax returns before applying for a mortgage, but that isn’t always true. Some lenders understand that self-employment income can take time to stabilize, so programs exist specifically for new business owners.
You may qualify if you:
- Have Previous Industry Experience
- Are incorporated, a sole proprietor, or on contract
- Recently switched from salaried work in the same industry
- Two years of self-employed taxes are unavailable
With the right lender, documentation & industry experience, you can often qualify for a mortgage sooner than expected.
💡 Did you know?
Many mortgage lenders do not lend to business owners who have been operating for less than 2 years.
What Mortgage Lenders Look For When You Are A New Business Owner
You may be able to still qualify for a mortgage with under two years of self-employment if lenders see solid industry experience, consistent business activity, good credit, and reasonable debt.
Many new business owners are approved with far more flexibility than they expect — even with as little as 5% down payment there are mortgage programs available through CMHC, Sagen and Canada Guaranty.
Industry Experience
If you’ve worked in the same line of work for years, lenders are more comfortable approving your mortgage.
Credit Score
A higher credit score can make lenders more flexible on income requirements.
Down Payment
A larger down payment often leads to an easier approval — but you may still qualify with as little as 5% down.
Business Stability
Even new businesses can qualify if your deposits, contracts, or sales show predictable growth.
Debt Levels
Lower monthly liabilities help you qualify for more.
Sufficient Cash Reserves
Additional savings help reduce the income uncertainty associated with self-employed borrowers who have been in business for less than two years.
Why Working With a Self-Employed Mortgage Specialist Matters
- Access to Lenders Who Provide Less Than 2 year Programs
- Focused on self-employed mortgages
- Knowledgeable in self-employed mortgage programs
- Faster, Smoother Mortgage Approvals
💡 Did you know?
Many mortgage lenders do not lend to business owners who have been operating for less than 2 years.
Multiple Lender Options
When you’re newly self-employed, you’re not limited to just one mortgage path. You typically have three lender categories to choose from — each with different approval guidelines, rates, and documentation requirements.
This flexibility means we can match you with the lender that best fits your income, timeline, and goals, giving you more ways to get approved even without a long self-employment history.
Big Banks, Credit Unions & Other “AAA” Lenders
Big Banks, Credit Unions and other “AAA” mortgage lenders can be a great option for newly self-employed clients.
These lenders typically like to see at least one year of self-employment to confirm the business has stabilized and is producing consistent income.
With the right documentation, credit, and down payment, AAA lenders can approve newer business owners with as little as 5% downpayment.
Alternative Lenders / Programs
When newer business owners don’t quite fit the guidelines of big banks or credit unions, alternative lenders are a great next option.
These lenders offer more flexible approval guidelines and higher qualifying amounts, making it easier to move forward while still securing a strong mortgage solution.
Alternative lenders can approve business owners for a mortgage who have been in buniness for only a few months.
These lenders require a minimum of 20% downpayment and often times have a setup fee of 1-2% of the mortgage amount.
(Many business owners don’t realize that a wide range of alternative mortgage programs are offered by the “AAA” lenders mentioned above)
MICs (Mortgage Investment Companies)
When newer business owners are looking for maximum flexibility with their mortgage approval, Mortgage Investment Companies (MICs) can be a great short term solution until business owners are able to qualify with the other mortgage lenders listed above.
This group of lenders typically base approvals on a larger down payment or on the equity you have in your home.
Mortgage Investment Companies can approve mortgage application for business owners who currently have no income, are just getting started or are planning on starting a business in the future.
These lenders typically require a minimum of 20% downpayment, have higher rates than the other lender options and have additional setup fees.
Approved New Business Case Study
Client Details:
The client works with a large telecommunications company in Calgary. He was previously a salaried employee and has recently transitioned to being a self-employed contractor while continuing to work with the same company.
❌ Problem:
Because he was newly self-employed, his bank declined his mortgage application, explaining that he had not been in business for the full two years they require.
✅ Solution:
We were able to get this clients mortgage approved with a “AAA” lender who offers a mortgage program for clients who are self-employed for less than two years.
We used a 2 year average of his previous salaried income – along with a copy of his new self-employed contract and one year self-employed personal tax returns.
Owen Langis with Mortgage Connection
Owen Langis with Mortgage Connection is a mortgage broker who is focused on self-employed mortgages & is passionate about helping business owners secure the mortgage financing they deserve.
With experience in traditional self-employed income and alternative self-employed lending programs, Owen understands the challenges entrepreneurs face when qualifying with traditional banks.
He takes the time to listen, simplify the process, and build mortgage solutions that reflect your real financial strength — not just your taxable income.
If you’re a business owner looking for a mortgage expert who is focused on self-employed mortgages and truly understands your world, Owen is here to help you every step of the way.
💡 Did you know?
Did you know that CMHC, Sagen & Canada Guaranty have mortgage programs designed specifically for self-employed borrowers who have been in business for less than two years.
Newly Self-Employed Mortgage FAQ
Can I qualify for a mortgage with less than two years of self-employment?
Absolutely — many self-employed Canadians qualify even with less than two years in business. Lenders look at your overall financial picture, not just your tax returns, and there are flexible mortgage programs designed specifically for new business owners. If you’re in this situation, I’d be happy to walk you through your options and help you see exactly what you can qualify for.
What documents do lenders need if I don’t have two full years of tax returns?
Lenders can still review your application without two full years of personal self-employed tax returns — they will look at other documents to understand your income and business stability. This may include your last 2 years T4s demonstrating previous industry experience, business bank statements, invoices or contracts, financial statements, NOAs and a detailed overview of your business. Every lender is a little different. I can help you figure out exactly what you need and make the process quick and stress-free.
How do mortgage lenders calculate my income when my business is new?
When your business is new, lenders often use more flexible methods to understand your true earning power. Instead of relying only on tax returns, they may look at your historical income based on your industry experience, business deposits, contracts and sales history. This helps paint a clearer picture of how your business is actually performing.
Do I need a larger down payment because I’m newly self-employed?
Not necessarily — many newly self-employed Canadians still qualify with as little as 5% down. Some lenders may offer more flexibility than others if you have strong credit and solid industry experience. A larger down payment can help in certain cases, but it isn’t required for everyone. If you’re unsure where you stand, I’d be happy to take a look and show you exactly what options are available to you.
Which lenders offer the best mortgage programs for new business owners?
Several lenders offer great mortgage programs specifically designed for new business owners — The best lender fit depends on your credit, down payment, and previous industry experience. It is important to remenber that not all lenders offer mortgage programs for new business owners. If you have been declined at your bank, please feel free to contact us for additional mortgage options.
Get Self-Employed Mortgage Advice Today
Book a call
Feel free to book a call at a time that works best with your busy schedule
owen@mortgageconnection.ca
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(403) 968-8512
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Do you have questions?
Let’s chat.