Self Employed Mortgages in Alberta

Lenders treat you as self employed when your income comes from owning a business or contract work. That includes sole proprietors, incorporated owners paid by salary, dividends or retained earnings, contractors and consultants, commission earners such as REALTORS®, sales and insurance, gig workers and professionals with mixed income. Each lender treats these profiles differently, so lender choice matters as much as paperwork.

Lenders need to confirm your income is stable, and self employed income is harder to standardize. Write offs make taxable income look low, income can swing year to year, business and personal money can be mixed, and most lenders want a two year history. A strong application tells a clear financial story using the documents lenders prefer.

Usually by averaging your line 15000 total income over the last two years from your T1 Generals and Notices of Assessment. Incorporated owners may qualify on salary plus dividends, and some lenders add back certain expenses or consider retained earnings. The method depends on your business structure and the lender.

Typically two years of T1 Generals and Notices of Assessment, business registration or articles of incorporation, and sometimes financial statements, business bank statements, contracts or invoices, and GST filings. Incorporated owners also provide T4s or T5s for salary and dividends.

Prime lenders when your tax returns support the income, credit unions which are often more flexible, alternative (B) lenders when write offs reduce taxable income, and insured self employed programs when eligible. The right strategy matches your story to the right lender's rules.

Mortgage brokers in Alberta are usually paid by the lender when your mortgage closes, not by you. The lender pays the brokerage a finder's fee, so for most standard residential mortgages our service costs you nothing.

In Canada the minimum down payment depends on the purchase price. Up to $500,000 you need 5%. Between $500,000 and $1,500,000 you need 5% on the first $500,000 and 10% on the rest. At $1,500,000 or more you need 20%. Many Calgary first time buyers put down 5% to 10%.

You must qualify at the higher of your contract rate plus 2% or the 5.25% minimum qualifying rate. The rule is set by OSFI (the Office of the Superintendent of Financial Institutions), not the Bank of Canada, and applies to federally regulated lenders. It checks that you could still afford payments if rates rise.

A bank can only offer its own products. A broker compares dozens of lenders, including major banks, credit unions and alternative lenders, and matches you to the best fit. Brokers often find better rates, more flexible terms, or approvals a single bank would not offer, at no cost to you for most mortgages.

Start about 120 days before your term ends. Most lenders will hold a rate for up to 120 days, which gives you time to compare offers without rushing. A broker can review your renewal letter and show you what else is available.

Yes. Self employed borrowers and people with commission, contract or changing income often benefit most from a broker. We work with lenders that specialize in business for self and non traditional income, and matching you to the right lender matters more when documents are not straightforward.

Before you start house hunting. A pre-approval gives you a clear budget, can hold a rate for 90 to 120 days, and shows sellers you are serious. If you are renewing or refinancing, reach out at least four months before your term ends.