The Self-Employed Mortgage Checklist: What You Actually Need to Get Approved
Skip the Guesswork. Here’s What You Need—Line by Line.
If you're self-employed in Calgary and planning to apply for a mortgage, you've likely heard this phrase before: "It’s not impossible—but it is more work." And that’s true. But with the right preparation, you can present a strong, complete file and get approved without surprises.
At Spire Mortgage, we specialize in helping business-for-self (BFS) clients in Alberta secure mortgages that work with their income reality. In this blog, we break down exactly what documents you need, how to explain your financials, and what lenders actually look for in a self-employed mortgage file in Canada.
Renee Huse, founder of Spire Mortgage Team in Calgary, Alberta, has helped hundreds of BFS clients navigate this process. Let's break it down.
What Documents Do Self-Employed Borrowers Need for a Mortgage?
Income & Tax Documents
- 2 Years of Notice of Assessments (NOAs)
- 2 Years of T1 Generals (T1s) — all pages
- T2 Corporate Tax Returns (if incorporated)
- Current Year-to-Date Financial Statements — ideally prepared by an accountant
Business Proof & Activity
- Valid Business License or Articles of Incorporation
- Business Bank Statements (12 Months)
- Client Invoices and Receipts (if applicable)
- GST/HST Filings (optional but helpful)
Personal Verification & Assets
- Government-issued ID
- Recent Mortgage or Rent Statements
- Current Property Tax Statements (if applicable)
- Bank Statements for Down Payment Verification (90 days)
Which Mortgage Tier Are You In?
Getting a mortgage as a self-employed professional in Canada isn’t a one-size-fits-all process. Unlike salaried borrowers, your file needs to be evaluated to see where it fits best. Here are the three core approval tiers:
Level 1: Standard Documentation
We use your full T1 Generals and NOAs with minimal write-offs. You qualify just like a salaried employee. These files go to any major bank or credit union with access to the best posted rates.
✔ Ideal if: You report consistent, sufficient net income and have little to no write-downs.
Level 2: Enhanced Programs
Your income isn't straightforward, but you have a strong business foundation. We may use a stated income program, review accountant-prepared financials, or present a net worth strategy to get you approved.
✔ Ideal if: You write off aggressively, are newly incorporated, or show income variability. You still get AAA rates but lender options narrow.
Level 3: Alternative Lending
Your business is growing, but tax filings don’t show enough income. We pivot to a BFS-friendly alternative lender, submitting 12-month business bank statements and invoices to build your case.
✔ Ideal if: You’re early-stage, just returned to self-employment, or had a major income dip.
Why this matters:
A broker can evaluate your documents, explain your income, and structure the file to make sure you’re not overpaying. Even if you don't fit the bank box, you're not out of options.
How to Explain Irregular Income as a Self-Employed Borrower
Lenders understand that not every year looks the same when you’re running a business. What they want is context — and it’s the mortgage broker’s job to craft that story. This is where our Detailed Deal Notes come in. These are not letters you have to write yourself. They’re crafted by us, based on what we learn in our discovery call together.
- Detailed Deal Notes: Prepared by your broker to explain income gaps, transitions, and recovery trends in plain language that lenders understand.
- Show Positive Trends: Bank statements, client contracts, or YTD revenue can help support a bounce-back year.
- Account for Transitions: If you switched industries or restructured your business, we’ll explain how and why.
What Lenders Expect at Each Approval Level
| Lender Type | Requirements | Flexibility | Best For |
|---|---|---|---|
| A Lenders (Banks/Credit Unions) |
2 years NOAs + T1s Clean, provable income |
Low | Established BFS clients with stable income |
| Alternative Lenders (B Lenders) |
May use business bank statements or stated income | Medium | Newer businesses or high write-offs |
| Private Lenders | Equity-based, minimal income verification | High | Recent transitions, credit challenges |
The BFS Mortgage Glossary
- T1 General: Your full personal tax return. Shows your gross and net income.
- NOA: Notice of Assessment from CRA.
- T2 Corporate Return: Business tax filing if incorporated.
- YTD Financials: Profit & Loss + Balance Sheet.
- Write-offs: Expenses that reduce taxable income.
- Detailed Deal Notes: Broker-written context that explains income trends or anomalies.
- Grossing Up: Adjusts non-taxable income upward.
- Stated Income: Used with private/alt lenders; higher premium or rate. Pay the premium, or pay the taxes.
- GDS/TDS: Debt service ratio measures for qualification.
Real Client Snapshot: Freelance Designer Turned Owner
Our client was a single mom in Calgary working as a freelance graphic designer. She had a young family and didn’t want to keep moving — she wanted to put down roots. The problem? Her landlord put the property up for sale, and buying was the only way to stay. Rentals that suited her family were going for over $3,500/month — and anything under that price point simply didn’t meet her needs.
- Mortgage Needed: $530,000
- Down Payment: $105,000 from savings
- Income: 2022: $41,000 | 2023: $62,000
- Challenge: Low net income due to vehicle and home office write-offs
- Strategy: Submitted 12-month bank statements, client invoices, YTD financials, and a strong broker-written explanation
- Approval: 5.79% fixed, 30-year amortization
- Outcome: Approved in 7 days, no co-signer
Mortgage Payment Comparison (30-Year Amortization):
At 5.79%: $3,333/month
At 4.34%: $2,627/month
Difference: $706/month
This client didn’t qualify for bank rates — but with the right strategy, she still became a homeowner. She’s already seen appreciation in her property, and if we hadn’t acted quickly, she wouldn’t be participating in the market today.
Spire Mortgage – Trusted Calgary Mortgage Brokers
Contact us today to work with Calgary’s best mortgage broker, Renee Huse, and find your best-fit mortgage strategy.
