Being self-employed gives you freedom, but it can make things a little tricky when you’re looking to buy a home. If your income doesn’t look the same every month, you’re not alone. Many self-employed workers in BC ask the same thing, how do I qualify for a mortgage without the regular pay stubs others have? Across Canada, nearly 20% of people now fit into the self-employed category, so you are far from alone if your income does not come with traditional slips or T4s.
That’s where working with a mortgage broker for the self employed comes in. But before connecting with anyone, it helps to know what steps make the process smoother. And since January tends to be quieter in terms of real estate and lending activity, now is a good time to get things moving without the usual rush.
Know What Lenders Look For
When you’re self-employed, your income doesn’t always show up as clearly on paper. Lenders know this, but that doesn’t mean they’re more flexible. In fact, they may ask for a bit more from you to feel confident that you can handle a mortgage.
Here are the things lenders typically care about:
• How long your business has been running (they usually like to see at least two full years)
• Your average income over that time, based on tax filings
• Your declared income, which might be lower than your actual income if you write off a lot of expenses
Lenders aren’t trying to make it harder for you. They just need a full picture of your financial health. The better you understand their checklist, the more prepared you’ll be when applying.
Gather the Right Documents Early
One of the best things you can do ahead of time is get your documents in order. Paperwork always seems to take longer to track down in January. Some offices are just re-opening from the holidays, and delays are common. Taking care of this now saves time later.
You’ll likely need the following:
• Two years of personal tax returns
• Notices of Assessment (NOAs) from the Canada Revenue Agency
• Business bank statements from the last three to six months
• A copy of your business licence, or articles of incorporation if you have a registered company
It helps to keep all of these in one place, like a physical folder or a dedicated spot on your computer. That way, everything’s easy to find when questions come up.
Work with Someone Who Understands Self-Employed Needs
There’s a big difference between applying for a mortgage on your own and doing it with help from someone who understands how self-employment works. A mortgage broker for the self employed can explain confusing terms, find lenders who accept non-traditional income, and point you in the right direction based on your business type.
Some brokers have long-term relationships with lenders who are more flexible with self-employed applications. That kind of match can make all the difference. And when that broker knows the BC market, they can help you time things properly and offer advice that fits your situation and your location. At Asim Ali Mortgage, we offer dedicated Mortgages for Self Employed services and work with many different clients and lenders to help find mortgage options that reflect your actual business income.
Think About Timing and Season
In BC, January is a slower time for house hunting and the mortgage industry in general. That might sound like a bad time to apply, but it can actually be helpful. Fewer people are sending in applications. Lenders might have more space to give your file proper attention, and there isn’t as much pressure to rush decisions.
This time of year is also good for planning. With spring around the corner, the pace always picks up soon. If you start now, you’re well ahead of those waiting for the warmer months. You’ll have time to ask questions, compare rates, and think about what type of property fits your current needs.
Plan for the Long Run
Owning your own business means your income may change from month to month. That’s why it’s smart to build a plan that lines up with how you earn.
Here are a few tips that help with that:
• Look at how your income flows over 12 months, not just monthly
• Keep a small savings buffer to cover mortgage payments if business slows down
• Set reminders for when it’s time to renew your mortgage or check in on your financial goals
Buying a home is a big step, but you don’t want to overcommit. A steady plan helps you stay in control without feeling stressed every time your income shifts slightly.
Building Confidence When Buying as Your Own Boss
Just because your income doesn’t follow a standard pay schedule doesn’t mean home ownership is off the table. Self-employed workers can absolutely get approved for a mortgage if they approach it the right way.
By getting your documents ready, applying during a quieter season, and working with someone who knows how self-employment works inside and out, the whole process feels a lot less stressful. Planning ahead when things are calm, like in January, means you’re ready to act once momentum picks up. Our brokerage is licensed in both British Columbia and Alberta and supports clients across Canada, so we can help you look at mortgage choices that fit both your business realities and your long-term goals.
Buying a home while running your own business is possible. It just takes the right steps and a bit of teamwork with someone who sees the full picture.
At Asim Ali Mortgage Broker, we understand that buying a home while self-employed brings many questions because fluctuating income requires careful planning and a thoughtful approach. Working with a knowledgeable partner can make all the difference in guiding you through the process, so should you need support from a mortgage broker for the self employed, we are here to help you take the next step in your homeownership journey.