Newly Self-Employed? Your Mortgage Options
Most lenders want 2 years of self-employment history. But what if you’ve only been running your business for 6 months? Or just made the leap from employment? You may have more options than you think.
The 2-Year “Rule”
Traditional lenders typically require 2 years of T1 General tax returns showing self-employment income. This helps them verify income stability. But exceptions exist:
- Same industry: If you were employed in the same field before self-employment, some lenders count that experience
- Strong documentation: Contracts, revenue growth, professional credentials can help
- Co-signer: Adding a co-signer with stable income bridges the gap
- Alternative lenders: Accept 1 year or less with larger down payments
Recently Left Employment?
If you have a T4 history and recently transitioned to self-employment, some lenders will blend your income — using your employment history plus early self-employment to qualify you.
Building Your File
If you’re planning to buy in the next 1-2 years:
- File taxes promptly: Get those years of self-employment on record
- Keep clean records: Organized financials make lenders comfortable
- Build credit: A strong credit score helps offset limited history
- Save aggressively: A larger down payment opens more doors
💡 Timing
If you’re close to the 2-year mark, waiting a few months can dramatically improve your options. Let’s discuss whether to apply now or wait for better terms.
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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