Can You Get a Mortgage Without 2 Years of Income as a Self‑Employed Individual?

Nov 10

Renee Huse, founder of Spire Mortgage Team in Alberta has talked to dozen of self‑employed Canadians who say: “I’m doing great, the business is growing—why won’t the bank let me qualify yet?”

If you’ve recently left your nine‑to‑five to start your own company, you’ve probably already heard this line: “Come back when you’ve got two years of tax returns.” It’s frustrating—and it’s not always true.

We’ve helped many Alberta clients qualify for a mortgage with far less than two years of self‑employment. Some even as little as three months. Let’s unpack how that’s possible.

What Does the “2‑Year Rule” Really Mean?

When you go to a typical bank, they’ll ask for two full years of tax returns and NOAs. They want to see stability and history. But that doesn’t mean you’re stuck renting until you’ve been in business for 30 months.

There are lenders—many of them—that can approve mortgages with less history. We’ve done it for clients with only a few months under their belt. The trick is finding a lender who looks beyond just your T1s and considers the full picture.

How Do Lenders View Self‑Employed Income?

If you’re on a salary, your job letter and paystub are all they need. But when you’re self‑employed, they dig deeper.

They look at your net income after expenses, how long the business has been running, whether it’s growing, and how closely your new business lines up with what you did before. For example, if you were a top electrician working for someone else and now you’ve gone out on your own, that’s reassuring to a lender. You didn’t just start from scratch—you brought skills, clients, and reputation with you.

How to Strengthen Your Case Without Two Years of Returns

When you don’t yet have two years on paper, you need to build your case in other ways.

Your business registration or incorporation documents matter too, along with your GST/HST returns if you’re collecting tax. And if you have an accountant, a letter from them summarizing your income and deductions can help calm lender nerves.

Even if you’ve only been self-employed for three or six months, the right documents can open the door to real mortgage options.

What to Avoid If You're Planning to Qualify Soon

This is where a lot of people get tripped up. They try to save money on taxes—which makes sense—but end up showing very little net income on paper. That’s the number lenders care about. So if you write everything off and report $25,000 in earnings, that’s all they’ll use, even if your gross revenue was six figures.

Another common mistake is not separating personal and business accounts. When it’s all mixed together, it’s hard for lenders to track the real cash flow. Same goes for inconsistent payments—if you’re paying yourself irregular amounts at random times, it doesn’t paint a steady picture.

And if you haven’t filed your taxes yet, that’ll stop your file in its tracks. Make sure your most recent return is filed and you’ve got your NOA ready to go.

Should You Wait or Try to Qualify Now?

This depends on your situation, but here’s how we help people think through it.

If you’re just starting out and your income isn’t quite there yet—or if your second year is shaping up to be way better than your first—it might make sense to wait. You’ll have more options and possibly better rates.

But if you’re already earning well and can prove it, and you’ve found the right home, it could make more sense to apply now—even if it means going with a lender that’s slightly outside the traditional box. You’re buying time in the market instead of waiting and watching prices climb or rents eat away at your savings.

Remember, you don’t have to stay with an alternative lender forever. Many clients refinance into a traditional mortgage a year or two later once they have the full two years of income.

Real Alberta Case Studies

Emma in Calgary

Emma had been an interior designer for years at a big firm and recently opened her own studio. In her first year, she earned over $130,000. The bank still said no—she only had one tax return.

We used her contracts, bank statements, and background to build a solid file and placed her with a lender that looked at the whole picture. She moved into her dream duplex in Marda Loop and hasn’t looked back.

James in Airdrie

James was a journeyman electrician who left his job to go solo. He only had three months of business history—but he also had a 12-year work record, consistent deposits in his business account, and signed commercial contracts.

The bank turned him down. We didn’t. He ended up with a prime mortgage and closed within a month.

Glossary of Key Terms

Self-Employed: Anyone earning through their own business, contract work, or freelance.
Stated Income: A program where lenders accept income based on your profession and documents, even if your taxes don’t show the full picture yet.
Alt-A Lender: A lender with flexible qualification rules, ideal for self-employed or non-traditional files.
T1 General: Your full income tax return filed with CRA.
Notice of Assessment (NOA): CRA’s confirmation of your taxes filed and any balance owing or refund.
Co-Borrower: Someone else—usually a spouse—whose income helps you qualify.
Business Account Statements: Bank records showing revenue from your business activities.
Amortization: The length of time over which you pay back your mortgage, commonly 25 or 30 years.

Common Questions We Get

Can I get a mortgage with just a few months of self-employed income?
Yes, we’ve done it. If the rest of your file is strong—background, business flow, credit score—it’s absolutely possible. You just need the right lender.

Do I have to pay higher rates if I apply early?
Sometimes. But often the rate difference is small, and the benefit of buying now can outweigh it—especially if you’re paying high rent or buying into a rising market.

What if I changed industries when I became self-employed?
That can complicate things. Lenders are more comfortable when your new business lines up with your past experience. But if the income’s there and the story makes sense, we can still make it work.

Do I need to pay myself a regular salary?
It helps. Consistent income deposits make your file cleaner and more predictable to lenders. If you’re just pulling money randomly, it’s harder to prove affordability.

Will being incorporated affect how I qualify?
Yes, but not in a bad way. It just means the documentation needs to be more thorough. We deal with incorporated clients every day—it’s all about structure and clarity.

Let’s Talk About Your Plan

Give us a call or fill out an application at this link: https://spiremortgage.ca/apply-now and our team will get in touch with you to start building a plan that suits you.

Renee Huse

Can You Get a Mortgage Without 2 Years of Income as a Self‑Employed Individual?