Self-Employed Stated Income Program (Insured)
Designed for self-employed borrowers who don’t qualify under traditional income guidelines. For those with strong credit, minimum 10% downpayment and in business for a minimum of two full years.
- Creates higher qualifying income for self-employed borrowers
- Incorporated or Sole proprietor
- Minimum 10% Downpayment
What Is An Insured Stated Income Program?
Navigating the mortgage process as a self-employed borrower can be challenging when traditional income documentation doesn’t reflect your true earning power.
That’s why specialized programs from Canada’s mortgage insurers now make homeownership more accessible for business owners with strong credit, proven financial responsibility and have a minimum 10% downpayment.
Through options like Canada Guaranty’s Low Doc Advantage™, Sagen’s Business for Self (Alt. A), and CMHC’s Self-Employed Mortgage programs, self-employed Canadians can qualify for insured mortgages with flexible income assessment standards and competitive down payment requirements — helping you turn the dream of owning a home into reality even when standard income verification falls short.
Why Use An Insured Stated Income Program?
Stated income programs that are offered by CMHC, Sagen & Canada Guaranty are ideal for self-employed borrowers whose tax returns don’t accurately reflect their real income & have a minimum of 10% downpayment.
Many business owners legally minimize taxable income through deductions, write-offs, and reinvestment in thei business, which can make qualifying under traditional lending rules difficult.
A stated income mortgage program allows lenders to assess your self-employed income using a more holistic view of your business, credit profile, and financial strength—making it possible to qualify for an insured mortgage with competitive rates and a lower down payment, without being penalized for smart tax planning.
Do you have questions?
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Who Can Use An Insured Stated Income Program?
An Insured stated income program is best suited for self-employed Canadians who have been in business for at least two years, maintain strong credit, and have a minimum of 10% downpayment—but whose tax returns don’t reflect their true income due to legitimate write-offs or reinvestment.
This includes sole proprietors, incorporated business owners, and partnerships with stable, established businesses and reasonable stated income aligned with their industry.
With options offering insured mortgage financing with as little as 10% down, this program is ideal for financially sound business owners who may not qualify under traditional income verification methods.
Documents Required
To apply for an income add-back program, lenders usually require:
- Two years of personal T1 Generals
- Two years of Notices of Assessment (NOAs)
- Business financial statements (if incorporated)
- T2125 statements for sole proprietors
- Accountant-prepared statements (preferred)
Clean, consistent documentation improves our odds for a mortgage approval.
💡 Did you know?
Did you know that by using an insured stated-income program, you may be able to significantly increase the amount you qualify for?
Why Working With a Self-Employed Mortgage Specialist Matters
- Access to Lenders Who Use Insured Stated Income Porgrams
- Focused on self-employed mortgages
- Knowledgeable in self-employed mortgage programs
- Faster, Smoother Mortgage Approvals
Case Study: How an Insured Stated-Income Program Helped a Hair Stylist Qualify for A Larger Mortgage Amount
Client Details:
Sarah is a successful, self-employed hair stylist who owns a busy high-end salon.
Her business grosses over $200,000 per year in sales before write-offs and has been consistently booked months in advance.
Like many business owners, she uses legitimate business deductions—supplies, chair rental, education, and vehicle expenses—to lower her taxable income.
❌ Problem:
When Sarah applied for a mortgage through a traditional bank, they focused almost entirely on her net taxable income after write-offs.
On paper, her income looked much lower than what she actually earned and lived on.
As a result, the bank’s approval amount fell well short of what she needed to purchase the home she wanted, despite her strong credit, solid down payment, and proven business success.
✅ Solution:
By using an insured stated-income program, we were able to take a more realistic view of Sarah’s true earning power.
Instead of relying only on the lower net income shown on her personal tax returns, the program allowed us to qualify her using a much higher income amount, along with her overall financial strength and the proven stability of her business.
This approach resulted in a substantially higher mortgage approval amount compared to the traditional route & she only needed to have a 10% downpayment.
With the improved qualification, Sarah was able to confidently purchase her new home—without changing how she runs her business or sacrificing legitimate tax write-offs.
💡 Did you know?
Did you know you can still access some of the best mortgage rates while using an insured stated-income program?
Other Self-Employed Mortgage Programs
Frequently Asked Questions
Do insured stated-income programs have higher interest rates?
No. Many insured stated-income programs offer the same or very similar rates to traditional insured mortgages. The key difference is how income is verified, not the pricing.
How much more can I qualify for compared to a traditional mortgage?
It depends on your situation, but for many self-employed clients, the qualifying income can be significantly higher than the net income shown on personal tax returns—especially when strong gross business income and cash flow are present.
Is this considered a “B lender” or alternative mortgage?
No. Insured stated-income programs are typically offered through "AAA" prime lenders and are backed by Canadian mortgage insurers. They are designed specifically for self-employed borrowers whose tax returns don’t reflect their true earning power.
Do I need a large down payment to use an insured stated-income program?
No. These programs are insured, which means they can work with as little as 10% down for eligible purchases, similar to other insured mortgages.
Is my income just “stated,” or does it need to make sense?
The income must be reasonable and supportable. Lenders and insurers look for income that aligns with your industry, business activity, and financial records—it’s flexible, but it still has to be credible.
Get Self-Employed Mortgage Advice Today
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