Self-employment can be a fulfilling and rewarding way of making a living, whether you're a freelancer, private contractor or business owner. When shopping for a mortgage, application requirements and the process may differ from someone with a traditional full-time job. The important thing is to keep looking as you have options.

With a "regular" mortgage, you secure a pre-approval for the amount you need based on your household's net income. With a Business for Self (BFS) mortgage, the qualification focuses on determining your income (versus the number you show to Revenue Canada).

Because you have a fluctuating cash flow, there are more moving parts. For instance, income tax, CPP, and EI aren't deducted by the payer for your services. You may have an aggressive tax strategy where you claim a specific number of expenses on your income tax return to reduce your net income and your taxes owing.

While it can be a huge benefit when filing your income tax return each spring, a low net income can be a red flag to lenders. With many lenders, all they see is precisely the amount you claimed on your taxes and will make a decision based on that.

Every lender prefers a type of BFS applicant who can demonstrate the income to meet their payment obligations. However, each lender goes about ascertaining this comfort in a slightly different manner. The trick is finding a lender whose policies mesh best with your situation.

Increase your chances with a mortgage broker

A self-employed mortgage may be hard to find on your own. A mortgage broker can look at your numbers and guide you to the best institution that can offer the best terms for your situation.

With a decade of industry experience and market knowledge, I have access to a large network of trusted lenders and will walk you through your options to help you understand the cost and benefit of each.

Because you have a complex income source, we'll have to dig a little deeper to get you the best possible deal. Remember, the difference can be in minor details. I'll also gather all the information and required documentation with you. We'll do so ahead of time to understand the details that may make your application more appealing to a given lender.

But what happens if you can't afford the property you want? I may advise you to add a co-applicant or guarantor to compensate for any shortfalls in income, assets, or credit scores. If that's the case, we'll discuss the impact this can have on your BFS mortgage.

Get in touch if you want to learn more about BFS mortgage financing. At no cost or obligation, we'll discuss mortgage products, features, and rates as they relate to your housing or savings, helping you make the best informed and calculated decision.


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To start, you need to understand the basic math of investing. You either buy low and sell high, or you buy well and keep for a while. Ask yourself, which one do you want to do, and how will your numbers look? Together, we can work out some scenarios and prepare you for your search.

Every investment comes with its own set of risks. We can consider mitigation strategies to help you manage some risks, but not all are inherent in a given investment. Real estate is no different. The plan you choose will have its own set of risks. How you manage or minimize them will depend on your unique approach.

Buying a property out-of-the-box means you’re not inheriting old problems, and the place will come with a warranty. As they say, the new car smell is never free.

An upfront conversation about your numbers can put some of these elements into perspective and help you plan your real estate portfolio around your goals, abilities, and lifestyle.

Cash flow is what you make every month minus what you spend. What you spend every month should include a buffer for any unplanned expenses (which you should be saving up for anyways). Positive means you’re in the plus and visa-versa.

The bank views cash flow-positive property as a more robust investment and is more likely to lend preferentially against it.

How do you estimate and budget for cash flow? That’s a more extensive conversation that we can have.

The answer is it depends. First, you should ask at least three people: your accountant, mortgage broker, and lawyer. There are considerable implications of doing so, but I’ll stay in my lane and speak only to the borrowing ones.

When you finance a property held in a holding company, there are rules you have to follow. In addition, you will:

  1. Limit your choice of lender and product options.
  2. Incur costs and be bound by some additional conditions of financing.
  3. Forfeit some privileges you may be otherwise entitled to when buying a property as an individual. And notwithstanding all of the above, it still makes sense to go the hold-co route for some specific scenarios.

Call professionals, take good notes, and run some solid numbers to make sure this makes sense for you - before you make a move. Ask to be referred to tried and true professionals who can help you improve the quality of the answers you get.

Investment concepts, where the outcome hinges on elbow grease or downright speculation, are often harder to sell to a lender. These projects will hold the operator (you) to a higher standard of financial ability to service this debt should your project hit choppy waters.

In contrast, opportunities, where properties have a strong cash flow and a solid long-term value projection, will be a lot easier. Financing costs will be lower, and the emphasis will be placed on the property itself rather than its investors.

A home equity line of credit (HELOC) is secured credit. Your home acts as a guarantee that you will repay the money you borrowed.

Up to a maximum credit limit, you can borrow money, repay it at your discretion, and borrow again. It typically comes with higher rates than their regular mortgage counterparts. You can best use them for consolidating short-term and/or recurring costs.

There are other factors to consider, and every situation is different. Talk to a professional to help weigh your options.