Self-Employed and Looking for a Mortgage? Here’s What You Need to Know in Calgary

Tim Lacroix • April 30, 2025

Being self-employed comes with freedom and flexibility, but when it comes to getting a mortgage in Calgary, it can feel like your independence is working against you. Traditional lenders often look for consistent income, employer letters, and easy-to-verify financials—things that aren’t always straightforward when you run your own business or freelance.

If you're self-employed and planning to buy a home in Calgary in 2025, this guide will walk you through what to expect, how to prepare, and what options are available to make your dream of homeownership a reality.

Why It’s Different for Self-Employed Borrowers

Lenders assess risk before approving a mortgage. For salaried employees, this is simple: paystubs, T4s, and employment letters paint a clear financial picture. For self-employed individuals, income is often inconsistent, and taxes are optimized (which can show lower net income). This makes it harder for banks to assess your ability to repay a mortgage.

Because of this, lenders often apply stricter scrutiny and ask for more documentation to prove income stability.

What You’ll Need to Qualify

If you're self-employed in Calgary, here's what you typically need to provide:

1. Two Years of Tax Returns

Lenders want to see a two-year track record of steady income. That includes:

• Notices of Assessment (NOAs)

• Full T1 Generals

• Possibly your business financials (especially if incorporated)

2. Proof of Business Existence

You’ll need to show you’re operating a legitimate business:

• Business license

• GST/HST number

• Articles of incorporation (if applicable)

• Business bank statements

3. Good Credit Score

A strong credit score is even more important for self-employed borrowers. Aim for 680 or above for best rates.

4. Lower Debt-to-Income Ratio

Lenders will calculate your debt service ratios. Try to pay down debts in the months leading up to your application.

5. Larger Down Payment

Some lenders may require more than 5% down. Having 10-20% improves your chances and lowers risk in the lender’s eyes.

What Are Your Mortgage Options?

Thankfully, mortgage brokers like the Tim Lacroix Mortgage Team specialize in helping self-employed Calgarians find the right solution. There are three main mortgage pathways:

1. Traditional Mortgage with Full Documentation

If you can prove your income through full tax documentation and meet all the lender requirements, you may qualify for a standard mortgage with competitive rates.

2. Stated Income Mortgage

Some lenders allow you to declare your income based on what’s reasonable for your industry and business model. These require:

• Excellent credit

• Minimum 10% down

• Business documentation
  Note: This is more common with alternative or B lenders.

3. Alternative or B Lenders

These lenders are more flexible but charge slightly higher interest rates. They often:

• Accept stated income

• Are open to new businesses (<2 years)

• Offer shorter terms (1-3 years)
  These loans are a great bridge to a traditional mortgage once your financials become more stable.

Tips to Improve Your Chances

1. Work with a Mortgage Broker

Mortgage brokers, especially those familiar with Calgary’s self-employed market, can access a wider variety of lenders and help you structure your file properly.

2. Organize Your Documents Early

Start gathering everything before you apply. Make it easy for the lender to understand your financial picture.

3. Minimize Deductions (Temporarily)

It’s common to lower your taxable income through deductions. But if you’re planning to buy, consider reducing those deductions for two years to show more income.

4. Improve Your Credit

Pay your bills on time, reduce credit balances, and avoid new debt. Every point on your credit score matters.

5. Separate Business and Personal Finances

Lenders prefer clean documentation. Use a separate business account, credit card, and bookkeeping system to make tracking income easier.

Calgary-Specific Considerations in 2025

Calgary’s real estate market continues to offer great opportunities for self-employed buyers. Here’s what you should know:

Housing Prices

While prices in Calgary have increased, they’re still more affordable compared to Toronto or Vancouver. The average detached home hovers around $650,000, while condos and townhomes remain popular with first-time buyers and self-employed entrepreneurs.

Business Growth

Calgary is a growing hub for startups, tech, and independent contractors. Lenders are beginning to adapt, with more flexible self-employed mortgage options available than ever before.

Support from Local Brokers

The Tim Lacroix Mortgage Team offers personalized advice tailored to your business type, income structure, and goals. Whether you're a realtor, contractor, designer, consultant, or run a small incorporated business, Tim's team can guide you through every step.

What About Mortgage Renewals?

Already own a home and need to renew? If your income has changed or become less “bankable,” talk to a mortgage broker before your term ends. You may qualify for a better rate elsewhere, or need to switch to a more flexible lender.

Final Thoughts

Getting a mortgage when you’re self-employed in Calgary may come with a few more hoops to jump through—but it’s absolutely achievable. Preparation is key, and working with an experienced broker can make all the difference.

With the right team and planning, your entrepreneurial success doesn’t need to hold you back from becoming a homeowner.

Ready to take the next step toward homeownership?
Let the Tim Lacroix Mortgage Team help you navigate your self-employed mortgage options with confidence. Book a Discovery Call today and make your business success work for you.