Self-Employed Mortgage Case Study – Hair Salon in Calgary

Brief Overview

This self-employed mortgage case study shows how a high-end hair salon owner in Calgary used strong credit, good income, and a 10% down payment to purchase a home—without the usual stress that many business owners feel when qualifying for a mortgage.

Client Snapshot

👷‍♂️ Client type: Self-employed Hair Studio Owner (Sole Proprietor)

📍 Location: Calgary, Alberta

⭐ Goal: Purchase First Time Home Buyer

🏠 Purchase Price: $450,000

💰 Down payment: $45,000 (from savings & partial gift from parents)

📄 Credit: Excellent (strong repayment history, no late payments)

💸 Income: Good, stable self-employed income for 2 years

Key Challenge

Like many business owners, the client’s taxable income looked lower on paper because of legitimate business write-offs and expenses.

⚠️ - Low reported personal income on tax returns due to significant business write-offs

⚠️ - The client’s bank declined her requested mortgage amount because, after business write-offs, her reported income was too low to qualify. The bank also didn’t offer an insured stated income program for self-employed borrowers that could have helped her qualify for a higher mortgage amount.

Mortgage Solution & Approval

The client contacted us for a second opinion on her mortgage options to purchase her first home.
We started with a Discovery Phone Call to make sure we were on the same page from the start of the process and were working toward a clear goal together.

✔️ Collected and organized the client’s tax returns, Notices of Assessment, and full down payment documentation

✔️ The client had a strong enough down payment to qualify for an insured stated income program

✔️ The client’s business showed high gross revenue before deductions and tax write-offs

✔️ The client received a gift from her parents to help with the downpayment to purchase her new home

✅ Using a specialty self-employed mortgage program, the client was approved for the higher mortgage amount he needed through Canada Guaranty’s insured stated income program—with 10% downpayment.

Disclaimer:
Every mortgage situation is different. These case studies are examples only and don’t guarantee approval. Your results will depend on your income, credit, down payment, and lender guidelines at the time you apply.