Mortgage Lenders for Self-Employed

The 5 Best Mortgage Lenders for Self-Employed Homebuyers

Are you a self-employed individual in Calgary with an unpredictable income from working online? Whether you’re a freelancer, consultant, or content creator, getting a mortgage can feel more complicated compared to someone with a traditional job. But here’s the good news: many lenders now offer flexible options specifically designed for self-employed homebuyers like you.

In this guide, we’ll dive into the top 5 mortgage lenders that understand the unique challenges of self-employment. These lenders offer tailored solutions to help you secure financing, even if your income varies from month to month.

1. Scotiabank

Why Scotiabank Stands Out:

Scotiabank is a strong choice for self-employed homebuyers because of its flexible documentation requirements. They’re known for offering mortgages to individuals with non-traditional income, including those who work online or run their own businesses.

Scotiabank’s self-employed mortgage program allows borrowers to use alternative income verification methods, such as business financials or a combination of personal and business bank statements.

Perks for Self-Employed Borrowers:

  • Offers competitive interest rates
  • Accepts income from online work or gig jobs with proper documentation
  • Access to the Scotiabank STEP Program, which combines mortgages and home equity lines of credit

Pro Tip: Be prepared to provide two years’ worth of income history (e.g., Notice of Assessments, invoices, or contracts) for a smoother approval process.

2. TD Canada Trust

Why TD Works for Freelancers and Contractors:

TD Bank is another popular lender for self-employed individuals, offering the Self-Employed Program that focuses on alternative income verification. They’re known for being flexible with gig workers, remote workers, and those with fluctuating monthly earnings.

TD takes into account your overall financial picture, which means strong credit scores and a sizable down payment can help offset unpredictable income patterns.

Perks for Self-Employed Borrowers:

  • Offers a variety of mortgage options, including fixed and variable rates
  • Accepts stated income if traditional documents don’t reflect your true earnings
  • Flexible repayment options for those with irregular cash flow

Pro Tip: If your income is sporadic, consider setting up a high-interest savings account with TD to build up a large down payment—this increases your approval chances.

3. Meridian Credit Union

Why Meridian Appeals to Canadian Entrepreneurs:

Meridian Credit Union, one of Canada’s largest credit unions, is an excellent choice for self-employed individuals. They offer a Self-Employed Mortgage Program designed for borrowers with non-traditional income, such as freelancers, business owners, or those with multiple revenue streams like e-commerce or consulting.

Meridian is known for its personalized service, tailoring mortgage solutions to meet the unique needs of self-employed borrowers, including those with irregular income or significant tax write-offs.

Perks for Self-Employed Borrowers:

  • Accepts income from multiple and irregular sources
  • Provides flexible options for borrowers using stated income or with large business deductions
  • Competitive interest rates compared to traditional banks

Pro Tip: Credit unions like Meridian tend to have more flexible lending policies than traditional banks. If you’ve faced challenges qualifying elsewhere, Meridian could be a great alternative.

4. DUCA Credit Union

Why DUCA is a Great Option for Self-Employed Borrowers:

DUCA Credit Union is another Canadian-based lender known for its inclusive approach to mortgages. DUCA’s Flex Mortgage program is designed for self-employed individuals who have difficulty proving income through conventional documentation. They consider your overall financial health and business success, rather than focusing solely on T4s or Notices of Assessment.

DUCA stands out for its ability to customize mortgage solutions for those with fluctuating or non-traditional income streams, making it ideal for freelancers, entrepreneurs, and small business owners.

Perks for Self-Employed Borrowers:

  • Offers stated income mortgages for borrowers with non-traditional income
  • Flexible documentation requirements, such as accepting bank statements or proof of business cash flow
  • Competitive rates and terms for self-employed borrowers

Pro Tip: DUCA Credit Union works closely with borrowers to offer tailored solutions. Partnering with an experienced mortgage broker can help you access their most flexible programs.

5. MCAP

Why MCAP is a Top Choice for Canadian Entrepreneurs:

MCAP is one of Canada’s largest independent mortgage financing companies and is highly regarded for its self-employed mortgage solutions. Their Alt-A Program is designed to help borrowers who have trouble qualifying for traditional mortgages, such as self-employed individuals or small business owners.

MCAP takes a more holistic approach to your financial situation, focusing on factors like your credit history, business assets, and cash flow. This makes them a top pick for self-employed Canadians who reinvest heavily in their businesses.

Perks for Self-Employed Borrowers:

  • Offers stated income mortgages with flexible qualification criteria
  • Considers alternative documentation like bank statements or business financials
  • Works with borrowers who have strong credit but lower taxable income

Pro Tip: MCAP often works through mortgage brokers, so partnering with a knowledgeable broker can help you access their best rates and programs tailored to self-employed borrowers.

Key Tips for Self-Employed Borrowers in Calgary

Finding the right lender is just the first step. Here are a few key tips to increase your chances of approval:

  • Keep Detailed Records: Have two years’ worth of financial documents ready, including NOAs, business financials, and proof of consistent income.
  • Build a Strong Credit Profile: Lenders place a lot of weight on credit scores when income is unpredictable. Aim for a score of 680 or higher.
  • Save for a Larger Down Payment: A down payment of at least 10-20% improves your chances of approval and gives you access to better rates.
  • Work with a Mortgage Broker: Brokers who specialize in self-employed mortgages can help match you with lenders that cater to non-traditional income earners.

Key Takeaways

If you’re self-employed and working online in Calgary, getting a mortgage may require more planning and effort, but it’s far from impossible. Lenders like Scotiabank, TD Canada Trust, Meridian Credit Union, Equitable Bank, and First National Financial all offer flexible options to help self-employed borrowers achieve their homeownership dreams.

The key is finding a lender that understands your unique situation and being prepared with the right documentation. Need help navigating the process? Contact us today, and we’ll connect you with the best mortgage options for your self-employment income.