Stated Income Mortgage for the Self-Employed in Canada (2026)

If you run a business and write down your income for tax efficiency, a traditional mortgage can undervalue what you actually earn. Stated income mortgages — sometimes called "Business-for-Self" programs — exist for exactly this. They let you qualify on a reasonable statement of your real income, supported by evidence. Here's how they work in Canada in 2026.

The short answer

A stated income mortgage lets a self-employed borrower declare a reasonable income that reflects real cash flow rather than just the net figure on their tax return. The lender supports the stated amount with bank statements, financials, and the nature of the business. These are offered by both insured "Business-for-Self" programs and alternative (B) lenders, usually for a modest rate premium or a larger down payment. See self-employed mortgage options.

Why stated income exists

Tax-efficient business owners legitimately reduce their net reported income through deductions — which is smart for taxes but makes their "paper" income look smaller than their actual earning power. A prime lender qualifying you strictly on net income would lend you far less than you can comfortably afford. Stated income programs bridge that gap by assessing reasonableness against your industry, your gross revenue, and your bank deposits.

How it works

• You state a reasonable income consistent with your business type and revenue.
• The lender corroborates it with 6–12 months of business bank statements, financial statements, gross revenue, and the time you've been in business.
• Reasonableness is key — the stated figure must be defensible for your industry. This isn't "no documentation"; it's "real-cash-flow documentation."

For a deeper look at the bank-statement approach, see bank statement mortgages.

Stated income vs. traditional self-employed

A traditional self-employed mortgage qualifies you on your Notices of Assessment (net income). Stated income qualifies you on a reasonable real-income figure supported by other evidence. If your NOAs already support the mortgage, take the traditional route for the best rate. If they don't reflect your true capacity, stated income is the tool. The broader decision tree is in how to qualify as self-employed.

What it costs

It depends which route you use. Insured Business-for-Self programs from CMHC, Sagen and Canada Guaranty allow up to 90% loan-to-value (10% down) when your stated income is reasonable for your business, typically with at least two years of self-employment verified by Notices of Assessment and business documents. Alternative (B) lender stated-income programs typically need 20% to 35% down and charge a higher rate, reflecting the lender's added flexibility. It's usually well worth it: qualifying for the right home now, with a plan to refinance to a prime rate once your reported income or credit supports it, beats waiting years. Model payments with the payment calculator.

Who it's for

• Incorporated business owners who pay themselves modestly and retain earnings.
• Sole proprietors and contractors with strong cash flow but heavy deductions.
• Commission and gig earners with variable but real income.
• Newer businesses (2+ years) with solid bank deposits.

Frequently asked questions

What is a stated income mortgage in Canada?

A mortgage that lets self-employed borrowers qualify on a reasonable statement of their real income, supported by bank statements and financials, rather than only the net income on their tax returns.

Is stated income the same as "no income verification"?

No. The income you state must be reasonable for your business and is corroborated with bank statements, gross revenue, and financials. It's documented differently, not undocumented.

How much down payment do I need for a stated income mortgage?

With an insured Business-for-Self program, as little as 10% down (up to 90% loan-to-value) if your stated income is reasonable and you've typically been self-employed for two years or more. With an alternative (B) lender stated-income program, typically 20% to 35% down.

Will I pay a higher rate?

Insured programs typically carry a higher insurance premium than a standard insured mortgage; B-lender programs usually carry a higher interest rate. Many borrowers use a B-lender program as a bridge, then refinance to a prime rate once their reported income or credit catches up.

Earning more than your tax return shows? Talk to us — we'll structure a stated-income application that reflects your real cash flow. Start with the self-employed mortgage guide.