Owning a home in Kelowna is an exciting goal — but for self-employed buyers, the path to mortgage approval can look a little different. Entrepreneurs, contractors, and small business owners often face unique challenges when it comes to verifying income and meeting lender requirements.
The good news? There are multiple mortgage options available, and with the right preparation and broker support, you can absolutely qualify for a mortgage that fits your goals.
The Challenge: Proving Income as a Self-Employed Borrower
Unlike salaried employees, self-employed borrowers don’t have traditional pay stubs or T4s. Instead, lenders rely on your tax returns — and if you’ve written off business expenses (as most business owners do), your income may appear lower on paper.
This can make qualifying with traditional lenders more difficult, but it doesn’t mean you’re out of options.
Mortgage Options for Self-Employed Buyers
- Traditional (A) Lenders
Big banks and credit unions follow CMHC, Sagen, or Canada Guaranty guidelines. To qualify, you’ll usually need:
- Two years of T1 Generals and Notices of Assessment
- Confirmation that taxes are paid and up to date
- Business financial statements
- Proof of consistent or growing income
💡 Best for: Borrowers with stable declared income and strong tax records.
- Alternative (B) Lenders
Alternative lenders look beyond your tax filings and consider your overall financial health.
They may use:
- 6–12 months of business bank statements
- Invoices, contracts, or retained earnings
- Credit score and repayment history
These programs often allow stated income — estimating income based on your business performance, not just your taxes.
💡 Best for: Self-employed individuals with legitimate write-offs or fluctuating income.
- Private Lenders
Private lenders focus on property equity and credit strength rather than income verification.
While rates are higher, this can be an excellent short-term solution if you plan to refinance once your income history strengthens.
💡 Best for: Borrowers who need short-term flexibility or are rebuilding their financial profile.
Documents You’ll Need
Having these ready can help speed up your pre-approval:
- Two years of tax returns (T1 Generals)
- Notices of Assessment
- Business license or incorporation documents
- Recent bank statements
- Proof of down payment
- Gift letter (if applicable)
How a Mortgage Broker Can Help
Working with a Kelowna mortgage broker who understands self-employed lending can make the difference between approval and frustration.
Your broker will:
> Compare lenders to find your best match
> Present your income in the strongest way possible
> Secure a 90–120 day rate hold
> Help you navigate alternative or stated income programs
At Dominion Lending Centres, we work with Canada’s top banks, credit unions, and private lenders to help self-employed buyers access competitive mortgage solutions tailored to their real financial situation.
Final Thoughts
Being self-employed shouldn’t stand in the way of homeownership.
With expert guidance, proper documentation, and the right lending strategy, you can unlock mortgage options that reflect your true earning potential — not just your tax return.
Ready to Get Started?
Book a Free Consultation
Written by: Annette Perry – Mortgage Broker | British Columbia
Dominion Lending Centres Kelowna – White House Mortgage
Serving Kelowna, West Kelowna, and the Okanagan Valley