Is it more expensive than for a salaried employee?

Not automatically. If you pass qualification at an A bank, the rate is identical to a salaried employee’s. If your file lands at a B lender (common for recent self-employed or complex dividend setups), the typical spread is 25 to 75 basis points — sometimes more depending on market and profile. On a $400,000 loan, 25 bps cost about $1,000 more per year in interest. The AMF broker presents real offers, not a promise.

How many years of self-employed income do I need to pass qualification?

Market standard: 2 years of declared income (T1 + NoA). Some B lenders accept 1 year of income if you can demonstrate similar prior activity (employee T4 in the same field, contracts, etc.). Alternative monoline programs can accept even less, on different terms. The shorter the history, the smaller the lender pool — but it exists.

If I just incorporated, what changes?

Recent incorporation (less than 2 years) complicates the admissible income calculation: the corporation has little financial history, and some A lenders do not recognize profits until 2 full cycles. Typical case where a broker turns to a B lender with a "business-for-self" program, or proposes a strategy: submit in your personal name, combining pre-incorporation personal income + post-incorporation dividends/salary, with an accountant letter. No guarantee — the AMF licensed broker analyzes your actual file.

If I pay myself in dividends only, can I pass qualification?

Yes — but not with every lender. Some A banks count only your personal T5 as admissible income (so only what you paid yourself in dividends). Several B lenders and monolines go further: they add a portion of the corporation’s retained earnings, with verified financial statements and an accountant letter. The difference on your borrowing capacity can be significant. The broker knows which one applies this method for your profile.

How many lenders will see my file?

The broker does not submit in bulk — submitting to 10 lenders in parallel creates 10 cascading credit pulls and damages your score. Standard practice: submit to 1 targeted lender at a time (sometimes 2 in parallel if urgent), with a credit pull generally shareable for 30 days between lenders (under inter-bank agreements). Goal: 1 or 2 pulls maximum, lender(s) chosen upfront.

Self-employed, declined

Declined by your bank? You’re not alone — and you’re not the problem.

Many Quebec self-employed workers get a no from their bank before seeing a broker. The real reason: the standard grid does not know how to read a T2125. A mortgage broker who does this often gets you through qualification with a B lender or monoline — often at the same rate as an A bank.

Start my self-employed file (≤ 5 min)

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Why your bank says no

The standard grid reads your income backwards

A banks compute admissible income with a grid built for T4 employees. For a self-employed worker, they take the average of your last 2 years of net income (line 150 of your T1, sometimes shaved further), not your gross revenue. If you deducted your home office, mileage, equipment, your fiscal income has shrunk — and your borrowing capacity with it. You are not less solvent; the grid sees only part of you.

TDSR and GDSR: two ratios not built for your profile

A banks use a GDSR (Gross Debt Service Ratio) capped around 35% and a TDSR (Total Debt Service Ratio) capped around 42-44%, computed on admissible income. With self-employed income shrunk by deductions, you hit the ceiling fast — even when in real life you generate twice what shows up on line 150.

Dividends vs salary vs T4A — each bank has its own logic

If you are incorporated and pay yourself in dividends, some A banks count only your personal T5, others accept adding part of the corporation’s profits (with audited financial statements). T4A contractor income is treated differently by lender. One bank says no, another says yes — on exactly the same file.

A lender vs B vs monoline: three different grids

A bank (large mainstream lenders): the strictest grid. B lender (Equitable Bank, Home Trust, B2B Bank, etc.): grid built for non-standard profiles, including self-employed — often at a 25 to 75 basis point spread. Alternative monoline (MCAP, First National via broker, and others): specific self-employed programs, sometimes a better fit than a B bank. A bank never refers you to these — a broker does.

What a broker who does this often does differently

1
They pick the lender before submitting
Out of 20+ lenders accessible through a broker, 4-6 have programs designed for self-employed workers (Equitable Bank, B2B Bank, MCAP, First National, Home Trust depending on the year). The broker identifies which one matches your profile — incorporated or not, dividends or salary, 2 or 5 years of income — before submitting. You do not burn a credit pull for nothing.
2
They compute according to THEIR grid, not the generic one
Each B lender and each monoline has its own formula for self-employed income. Some accept 100% of gross minus plausible expenses. Others average over 24 months with a coefficient. Others add retained earnings of your corporation. A broker who sees 50 self-employed files per year knows which one gives the best admissible figure for your profile.
3
They present the file in the right format
2-year Notice of Assessment (NoA), 2-year T1 generals, T2125 if unincorporated, financial statements (Balance + P&L) and T2 if incorporated, 90-day personal and corporate bank statements, lawyer or accountant letter if applicable. The format presented to the lender’s underwriter makes a real difference — especially with B lenders where the underwriter spends 15 minutes on your file, not 2.
4
They negotiate secondary conditions
Not just the rate. Prepayment penalty, portability if you move, accelerated annual payments, the option to refinance back to an A bank after 1-2 years of clean payments (exit refinance). The AMF mortgage broker negotiates these with the lender — banks just sell their product as-is.

How much it actually changes

Many files declined at an A bank go through with a B lender at the same rate, or a 25 basis point (0.25%) spread — sometimes up to 75 bps depending on profile and market. On a $400,000 loan, 25 bps cost about $1,000 more per year in interest. When the bank says no and the B says yes, it is rarely the moment to debate 25 bps.

If even a B lender says no — for example because the corporation’s first year pulls admissible income down — there remain alternative monolines (private lenders included). Rarer, higher rate (often 100-300 bps more), often with a 12-24 month exit plan to return to an A bank once the second year of income stabilizes.

Documented observation of the Quebec market: for self-employed profiles, shopping via a broker meaningfully increases the chances of passing qualification with at least one lender. It is an observation, not a promise — we document our sources.

See our sources and methodology →

« Web development freelancer for 6 years, incorporated for 3. Desjardins said no in 10 days — they did not know how to read my dividends vs salary mix. The broker referred by Courteo submitted to Equitable Bank, real qualification in 8 days, rate spread under 30 bps. I signed at the notary 5 weeks later. »
— Freelancer, Montreal · anonymized testimonial

Start my self-employed file (≤ 5 min)

No SIN, no exact credit score. An AMF mortgage broker from the Courteo network calls you back within 24 business hours.

The documents you will gather

The more complete your file at submission, the faster the lender’s underwriter processes it. Here is the core list — a broker will ask precisely what is needed for the target lender.

Federal Notice of Assessment (NoA) for the last 2 years
2 years of complete T1 generals
If unincorporated: T2125 (business income and expenses) for the last 2 years
If incorporated: T2 corporate return, financial statements (Balance + P&L) for 2 years, up-to-date NEQ
90-day personal bank statements, plus 90-day corporate statements if applicable
Proof of down payment (90-day history)
ID and proof of address

See the full pre-meeting checklist →

Have not gone to your bank yet?

You can skip that step. Start directly with an AMF mortgage broker from the Courteo network — they will shop right away among the lenders that match your self-employed profile. Free, no commitment.

Start my self-employed file

Frequent questions

Is it more expensive than for a salaried employee?: Not automatically. If you pass qualification at an A bank, the rate is identical to a salaried employee’s. If your file lands at a B lender (common for recent self-employed or complex dividend setups), the typical spread is 25 to 75 basis points — sometimes more depending on market and profile. On a $400,000 loan, 25 bps cost about $1,000 more per year in interest. The AMF broker presents real offers, not a promise.
How many years of self-employed income do I need to pass qualification?: Market standard: 2 years of declared income (T1 + NoA). Some B lenders accept 1 year of income if you can demonstrate similar prior activity (employee T4 in the same field, contracts, etc.). Alternative monoline programs can accept even less, on different terms. The shorter the history, the smaller the lender pool — but it exists.
If I just incorporated, what changes?: Recent incorporation (less than 2 years) complicates the admissible income calculation: the corporation has little financial history, and some A lenders do not recognize profits until 2 full cycles. Typical case where a broker turns to a B lender with a "business-for-self" program, or proposes a strategy: submit in your personal name, combining pre-incorporation personal income + post-incorporation dividends/salary, with an accountant letter. No guarantee — the AMF licensed broker analyzes your actual file.
If I pay myself in dividends only, can I pass qualification?: Yes — but not with every lender. Some A banks count only your personal T5 as admissible income (so only what you paid yourself in dividends). Several B lenders and monolines go further: they add a portion of the corporation’s retained earnings, with verified financial statements and an accountant letter. The difference on your borrowing capacity can be significant. The broker knows which one applies this method for your profile.
How many lenders will see my file?: The broker does not submit in bulk — submitting to 10 lenders in parallel creates 10 cascading credit pulls and damages your score. Standard practice: submit to 1 targeted lender at a time (sometimes 2 in parallel if urgent), with a credit pull generally shareable for 30 days between lenders (under inter-bank agreements). Goal: 1 or 2 pulls maximum, lender(s) chosen upfront.