Self-Employed Bad Credit Mortgage

Mortgage solutions for self-employed Canadians with bad credit, missed payments, past consumer proposal or bankruptcy.

A self-employed bad credit mortgage is a flexible mortgage option for Canadians who work for themselves and have lower or damaged credit.

It is designed for business owners, contractors, freelancers, and commission-based earners who may have been declined by their bank due to missed payments, past credit challenges, consumer proposal or bankruptcy.

Rather than relying only on higher credit scores and traditional income, these mortgage programs allow for lower credit scores (500+) focus on the full financial picture, including business cash flow, bank statements, down payment or home equity, and recent payment behaviour.

For many self-employed Canadians, this type of mortgage program makes it possible to buy, refinance, or renew their mortgage, while creating the stability needed to move into a better position moving forward.

Self-employed Canadians frequently have lower credit scores not because of poor financial habits, but because of how their income and cash flow naturally fluctuate.

Business owners often experience inconsistent income, delayed payments from clients, or seasonal slowdowns, which can lead to temporarily relying on credit to manage expenses.

During these periods, balances may increase or payments may be missed, even though the business itself remains profitable. Many self-employed borrowers also prioritize investing back into their business—using personal credit to fund growth, equipment, or operating costs—rather than maintaining low credit utilization.

Add in life events such as illness, divorce, or a sudden drop in revenue, and it’s easy to see how credit challenges can develop despite responsible long-term financial behaviour.

The result is often a credit profile that looks risky to lenders on paper, even though the borrower is stable, capable, and well-positioned to manage a mortgage.

• Unexpected life events, such as illness, divorce, or family emergencies that temporarily disrupt finances

• High credit utilization, often from using personal credit cards or lines of credit to fund business expenses
  (pro tip: carrying a high credit card balance month to month can lower your credit score substantially)

• Irregular income and cash flow timing, which can lead to occasional late or missed payments during slow periods

• Past credit repair steps, such as a consumer proposal or bankruptcy, taken to regain financial stability after a challenging period

Do you have questions?
Let’s chat.

Getting a mortgage application approved as a self-employed borrower with bad credit often comes down to using the right lender, the right program, and the right strategy.

Rather than taking a one-size-fits-all approach, we work with a broad range of mortgage lenders including banks, credit unions, alternative, and private lending partners, each with different guidelines for credit, income, and downpayment.

This allows us to match your application to lenders that are comfortable working with self-employed income, damaged credit, past missed payments, or previous credit repair steps such as a consumer proposal.

By choosing the right lender and submitting your application correctly the first time, we can help secure you a mortgage approval, even when traditional lenders have said no.

Self-employed Canadians with bad credit are not limited to a single lending path.

Canada’s mortgage market includes a wide range of lenders, each with different risk tolerances, income guidelines, and credit requirements.

The key to approval is matching your financial profile to the right lender and program, rather than forcing your application into lenders guidelines that may not fit your situation.

Depending on your credit history, income structure, and available down payment or equity, one or more of the following options may be available.

• Big banks – Typically require stronger credit and documented income, but may still be an option for borrowers with minor credit issues, strong income history, or significant equity

• Credit unions – Often more flexible than banks, with local decision-making and often a greater willingness to review the full financial picture

• Alternative lenders – Designed for self-employed borrowers who may have lower credit scores, flexible income verification, and less rigid underwriting guidelines

• Private lenders – Equity-focused options that prioritize property value and exit strategy over credit score, often used as short-term solutions

These mortgage options can be used for purchases, refinances, or renewals and are frequently structured as stepping stones—allowing self-employed borrowers to secure financing now while working toward stronger credit and more traditional lending options in the future.

Do you have questions?
Let’s chat.

The self-employed bad credit mortgage process typically begins with a short discovery call to understand your situation, credit history, income structure, and goals.

From there, you’ll complete a secure online mortgage application and upload the required documents for review.

Once the most suitable lender and program are selected based on your credit profile and financial picture, the application is submitted for approval.

After mortgage approval is received, and all financing conditions have been met, a lawyer is then usually instructed to handle the closing process.