Self-Employed in Vancouver: What You’ll Need to Know Before Applying for a Mortgage

Marci • June 19, 2014

Getting a mortgage in Vancouver these days has proven to be trickier than ever for first-time homebuyers and existing homeowners. But there’s one particular group of homebuyers that is having a much more difficult time getting approved for a mortgage: the self-employed. Those who work for themselves and are looking for a mortgage to finance a home in Vancouver might find the whole process tricky, but it’s not impossible. Here are some important things to know before applying for a mortgage if you’re self-employed.
Self-Employed in Vancouver- What You'll Need to Know Before Applying for a Mortgage

Every Penny Must Be Documented

The most important piece of information that lenders want to see before approving a self-employed individual for a mortgage is proof of income. In Canada, personal income tax statements can be used to prove a sustainable influx of cash. Certain pieces of information must be provided to a lender, including a Notice of Assessment for the last two years, a business license, two pieces of I.D., financial statements for the past two years if the business is incorporated, and proof of a down payment.

Proving Your Income Is an Absolute Must…..Sort of!

Lenders definitely need solid proof that your business generates more than enough profit to allow you to comfortably make your mortgage payments on time and in full every month. Lenders are not in the business of taking risks on self-employed individuals who are unable to prove their income.

At least two years of accounts are typically what lenders want to look at before they decide whether or not to offer you a particular mortgage. It’s advisable to get these account statements gathered by a certified accountant so the lender can be more comfortable, and confident that the numbers are accurate. It’s important that you understand the figures as stipulated in the account statements, and can answer any questions the lender may have about them. For example, if the statement shows a slight dip in your income at some point in the recent past, you need to be able to explain why. Clear explanations for any fluctuations in income can help a lender feel more confident in your income flow, and thereby increase the chances of you getting approved for a mortgage as a self-employed individual.

Some lenders are still offering programs that allow self-employed income to be “stated”. In these cases, insurance premiums are higher and we still need prove reasonability of the income. Documentation is important to show taxes are paid and up to date. Make sure you talk to a Mortgage Broker who understands how this process works and can advise you of all the requirements and costs involved.

Your Credit History Is Crucial

As with anyone applying for a mortgage, a healthy credit history is very important for a borrower who is self-employed. When it comes to securing a mortgage, a high credit score goes a long way. It demonstrates your ability to effectively manage your debt, which is crucial to a potential lender.

Boost Your Bank Account

Aside from your proof of income and your credit history, having a big chunk of liquid cash in the bank to use as a down payment on a future home is a big plus in the eyes of a lender, especially if you’re self-employed. A sizeable down payment and a healthy bank account can help convince a potential lender that you’re less likely to be a liability as far as credit is concerned. Since incomes tend to fluctuate from year to year for those who are self-employed, having a reserve of funds can offer an essential financial cushion to fall back on.

When looking to apply for a mortgage, it’s always best to talk to a mortgage broker first. A mortgage specialist is invaluable for those who are self-employed looking to secure a mortgage. They’ll know which lenders deal with self-employed individuals, and who can get you the best rate. For expert advice on Vancouver real estate, email your trusted mortgage broker today! marci@askmarci.ca

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Employment and Mortgage Qualification: What Lenders Look For

By Marci Deane • August 5, 2026
When you apply for a mortgage, your employment history and status carry a lot of weight. Even if you feel secure in your job, lenders need proof that your income is reliable and will continue. To them, your employment status is one of the strongest indicators of whether you can make your mortgage payments long term. Here’s how lenders typically view different employment situations: Permanent Employment This is the gold standard. Once you’ve passed any probationary period and hold permanent status, lenders see you as a lower risk. It shows that your employer is committed to you, and your income is steady. Probationary Periods If you’re still on probation—usually 3 to 6 months, though sometimes longer—lenders may hesitate. That’s because your employer can end your contract without cause during this period. Once probation is over, you’re considered more secure. That said, context matters. If you’ve worked with the same company for years as a contractor and just transitioned into full-time employment, lenders may accept a letter from your employer confirming that probation is waived. Documentation is key here. Parental Leave Being on or about to take parental leave doesn’t mean you can’t qualify for a mortgage. As long as you have a letter from your employer guaranteeing your position and return-to-work date, lenders can use your regular salary—not your leave income—when assessing your application. Term Contracts This is one of the trickiest categories. Even highly skilled professionals with strong incomes can face challenges here. A term contract has a start and end date, which makes lenders question the stability of your future income. To use term-contract income, lenders generally want to see at least two years of history, or proof that your contract has already been renewed. The more evidence you can show of consistent employment, the stronger your case will be. The Bottom Line If you’re planning to apply for a mortgage, it’s important to understand how your employment status could affect your approval. Whether you’re starting a new job, coming back from leave, or working under contract, lenders want documentation that proves your income is reliable. 📞 If you’ve recently changed jobs or are planning a career shift, let’s connect. I can help you prepare your file so you qualify with confidence and avoid surprises in the approval process.

Deposit vs. Down Payment: Key Differences for Homebuyers

By Marci Deane • July 29, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.

RRSP Home Buyers’ Plan Explained: A Smart Way to Buy Your First Home

By Marci Deane • July 22, 2026
Saving for a down payment is one of the biggest challenges first-time buyers face. What many don’t realize is that the Canadian government offers a program designed to make it easier—the Home Buyers’ Plan (HBP) . This program allows you to withdraw money from your RRSP to help purchase your first home, without immediate tax consequences. Here’s how it works: Who Qualifies? To be eligible, you generally need to be a first-time home buyer. In practical terms, this means you must not have owned a home in the past four years, nor lived in a property owned by your spouse or partner during that time. There are also special allowances if you’re living with a disability or helping a relative with a disability. In these cases, you can use the HBP even if you’ve owned a home more recently. How Much Can You Withdraw? Under the program, you can access up to $35,000 from your RRSP as an individual. Couples can combine their withdrawals for a total of $70,000 . These funds must have been in your RRSP for at least 90 days before you take them out. Paying It Back The HBP isn’t “free money”—it’s an interest-free loan from your own retirement savings. You’ll have 15 years to repay the full amount back into your RRSP, starting in the second year after withdrawal. Each year, the CRA will send you an HBP Statement of Account outlining how much needs to be repaid. If you don’t make your repayment in a given year, that amount will be added to your taxable income. Why It’s a Smart Strategy The HBP can give first-time buyers a powerful boost toward homeownership. It helps you put together a larger down payment, which can reduce your mortgage amount and monthly payments. Just remember: it’s important to balance the short-term benefit of homeownership with the long-term impact on your retirement savings. Next Steps Thinking about using the Home Buyers’ Plan? Let’s sit down and review whether it’s the right move for you. Together, we can create a strategy that gets you into your first home while keeping your future financial goals on track. 📞 Reach out anytime—it would be a pleasure to guide you through the process.