Self-employed

Your declared income doesn't reflect your real capacity.

You're a consultant, freelancer, incorporated business owner? You optimize your tax deductions — and traditional banks see your declared net income, not your real payment capacity. An AMF mortgage broker knows the lender programs adapted to your profile.

What likely concerns you

• Presenting your real income (before tax optimizations) without breaking your tax planning.
• Choosing between A lenders (banks) and B lenders (alternative) based on your file.
• Justifying 24 months of stable income even if your personal tax returns show less (business income + Financial Statements).
• Optimizing down payment ratio: higher = access to standard A lenders.
• Combining incorporated income + personal income (T4 from another job for example).
• Preparing documents self-employed lenders request (Financial Statements, accountant letter, client contracts).

What we avoid for you

• Steering you to a B lender (more expensive rates) by default if your file can qualify with A.
• Asking you to change your tax planning just to land the mortgage (bad long-term advice).
• Letting you guess how many months of historical income are required (varies by lender).
• Forgetting that credit unions (Desjardins) have specific self-employed programs sometimes better than banks.

How it works for you

1. 1

   Pre-qualification 2 min

   You indicate your situation: freelance / incorporated / mixed. No exact figures at this stage.

2. 2

   Coordinator calls you

   20-30 min to understand your structure (business income, dividends, retention in the company). Longer than for a salaried employee, normal.

3. 3

   Specialized AMF broker

   We connect you with a network broker who REGULARLY builds self-employed files.

4. 4

   360 optimization

   The broker works with your accountant if needed to structure the presentation to lenders (without changing your taxation).

Frequent questions — self-employed

• How many years of historical income are required?

  24 months minimum (your last 2 personal tax returns) at most lenders. Some alternative lenders (B lenders) accept 12 months if justified (ex: recent career change with solid income). The AMF broker identifies the right programs.

• My tax deductions penalize me — how to compensate?

  "Stated Income" programs: the lender evaluates your real business income (before optimized deductions) rather than your declared net income. Available at B lenders (rates +0.5-1.5%) and some banks for established clients. The broker negotiates.

• Incorporated vs non-incorporated: what changes for my mortgage?

  Incorporated (with a registered company) = more complexity (Financial Statements + dividends vs salary) but also more leverage (undistributed business income). Non-incorporated (you invoice in your own name) = simpler presentation but limited to your declared net income. The broker optimizes for your case.

• How much more expensive is a self-employed mortgage?

  If you qualify with a standard A lender: SAME PRICE as a salaried employee (just more paperwork). If B lender: rates +0.5-1.5% vs A lender. Over 5 years at 0.75% more on $400,000 = ~$15,000 in interest. The broker works to minimize this spread.

• I just became self-employed (1 year) — is it too early?

  Difficult but not impossible. Strategy: large down payment (25-30%), salaried history in the same field before self-employment, client letters confirming recurring contracts. The broker will tell you frankly if it's playable now or if you need to wait 12 months.

• Gross vs net: which figure does the bank use for my capacity?

  A lenders (banks) typically: NET income declared to tax authorities (line 150 or 234 of T1 General), averaged over 2 years. If you deducted $80,000 of expenses on $200,000 of billing, A lender retains $120,000. Stated Income program (B lenders and some A): the lender adds a portion of reasonable deductions back to estimate your real income. The AMF broker negotiates that adjustment.

• Why is my T1 General return so important?

  The T1 General (with T2125 schedules for business activities) is THE key document — the official CRA proof of your income. Lenders require the last 2 years and matching notices of assessment to confirm no tax balance owed. Having an accountant who produces clean, complete returns is a concrete mortgage advantage.

• What is the B-20 guideline and how does it affect me?

  B-20 is the OSFI (federal regulator) guideline that frames federally chartered lenders. It notably imposes the stress test (qualify at your contractual rate + 2% or the Bank of Canada qualifying rate, whichever is higher). For self-employed, B-20 also forces robust income documentation. Provincial lenders and credit unions (Desjardins) may have more flexibility.