Stated Income Mortgages: What Are Your Options?
Your tax returns don’t reflect your actual income. You write off everything you can — smart tax planning — but now your qualifying income is too low for the mortgage you need. What are your options?
Stated Income Programs
Some lenders offer “stated income” or “business-for-self” programs where income is declared rather than strictly documented. These programs typically require:
- Proof of self-employment: Business licence, CRA registration, client contracts
- Reasonable income declaration: Your stated income must be realistic for your industry
- Larger down payment: Typically 20-35% minimum
- Good credit: Usually 650+ required
The Trade-Offs
Stated income programs offer flexibility but come at a cost:
You’ll pay a higher interest rate and need a larger down payment. However, for many self-employed Canadians, this is the only path to homeownership — and rates are still much lower than credit card debt.
Alternative Approach
Consider these strategies to improve your traditional qualification:
- Two-year plan: Adjust tax strategy for 2 years before purchase
- Add-backs: We may be able to add back certain deductions
- Co-signer: A family member’s income could help
- Larger down payment: Reduces the mortgage amount needed
💡 Exit Strategy
Stated income mortgages can be a stepping stone. Get into the home now, then refinance to a better rate once you have 1-2 years of mortgage payment history and stronger documentation.
Elevation Mortgage
Brokerage: Mortgage Connection · Licensed in Alberta and British Columbia
Julie & Andy Jeffery — independent mortgage brokers serving Calgary, Nelson BC,
and clients across Alberta and British Columbia.
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