Self-employed mortgage in Burlington: bank first, then a B lender, then private
Being self-employed doesn't rule out a bank. Start there: a bank reads the income on your Notice of Assessment, not your sales. If your write-offs leave too little, an alternative (B) lender can look past the standard bank box, at a higher cost. Private is the last, short-term step. I offer it through my brokerage, where a Level 2 agent arranges it, and the plan is always to get you back to a bank.
Jenny Tate, Mortgage Agent Level 1
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1. Bank. It counts the income on your tax return. Under CMHC's rules, a sole proprietor's income can be grossed up by 15%, or eligible write-offs can be added back.
2. B lender. When the bank can't count enough, an alternative lender looks at more than the tax return. It costs more.
3. Private, through my brokerage. A short-term bridge based mostly on your home's value, with a written plan back to a bank.
Self-employed and told no, or told "B lender"? I'll look at what a bank can count first.
Online across Ontario: phone, video call or email. Office in Burlington.
One in seven Burlington workers is self-employed
In the 2021 Census, 14,815 of Burlington's 98,180 workers were self-employed. That's 15.1%, about one in seven, compared with 13.1% in the City of Hamilton next door (Statistics Canada, 2021 Census Profile, Burlington). Consultants, contractors, clinic owners, realtors. If you're one of them, here's the catch: the bank reads your tax return, and a tax return is built to keep tax low.
What you earned vs what the bank counts
A bank starts from your Notice of Assessment and T1 General. For a sole proprietor or a partner, CMHC lets the lender do one of two things: gross the income up by 15%, or add back eligible deductions. The lender decides which deductions count; ones it doesn't accept stay written off (CMHC Self-Employed).
Here's an example. The numbers are made up, so it isn't anyone's file.
| 15% gross-up | Add-back | |
|---|---|---|
| Net business income on the return | $85,000 | $85,000 |
| Added | 15%: $12,750 | Eligible deductions added back (example): $11,000 |
| Income the lender can use | $97,750 | $96,000 |
Notice what isn't there. If you also wrote off $20,000 of expenses the lender doesn't treat as eligible, they don't come back. That's the trade-off: a lower tax bill this year can mean a smaller mortgage next year. If you're planning to buy or refinance, talk to your accountant and to me before you file, not after.
CMHC also recommends at least 24 months running the business or working in the same line of work. For the full document list, see my self-employed mortgage guide.
From my files
Dividends plus retained earnings
An incorporated owner paid themselves partly in dividends, so their personal income looked modest. The two-year average of personal income was about $65,300. The company also kept money in the business: its two-year average retained earnings were about $54,600.
Counted together, that's a qualifying income of about $119,900. Not every lender allows retained earnings at 100%, so the lender you choose matters as much as the rate.
If you're incorporated, the money you left in the company may count. Ask before you assume it doesn't.
A real file I've worked on. Names, places, lenders and figures are left out or rounded for privacy. This is not a promise of approval, rate or outcome; your situation will differ.
Stated income didn't disappear
Stated income and business-for-self files are a specialty of mine, and a lot of people think this option is gone. It isn't. Sagen, a private mortgage insurer, runs a Business for Self (Alt. A) program for self-employed borrowers who can't show traditional income verification. You need at least two years in business, and the income you state has to be reasonable for the type and size of the business. On a purchase it goes up to 90% loan-to-value (Sagen Business for Self).
It costs more than a regular insured mortgage. Sagen's premium runs from 1.50% of the loan at up to 65% loan-to-value to 5.85% at 85.01% to 90%, for amortizations of 25 years or less.
Take Burlington's September 2026 median sale price, $905,500 (Cornerstone). With the minimum 10% down, $90,550, the loan is $814,950. A 5.85% premium on that is $47,674.58, which can be added to the mortgage. Ontario's sales tax on the premium can't be added; you pay it when you get the mortgage (FCAC).
For comparison, a regular insured purchase at that price needs at least $65,550 down: 5% of the first $500,000 plus 10% of the rest (FCAC).
When a B lender makes sense, and three questions to ask first
An alternative lender is the next step when the bank can't count enough of your income. Equitable Bank, for example, lists the self-employed first among borrowers who "may not fit into the conventional bank lending box" (Equitable Bank). Alternative lenders usually charge more than a bank, so it should be a reason, not a default.
Here's a question I see a lot: "My broker says I need a B lender. Is that right?" Sometimes it is. Before you agree, ask three things:
- Did you try bank lenders first, and what exactly disqualified me?
- What would I need to change to qualify with a bank?
- What's the total cost, and what's the plan to get back to a bank?
Private, through my brokerage
Private lenders often lend based on your home's value instead of your income. FSRA calls private mortgages "a short-term solution", usually for one or two years, and says you need a realistic exit plan. It also says your agent should be able to explain why you don't qualify for lower-cost loans from prime or alternative lenders (FSRA, private mortgages).
I'm a Mortgage Agent Level 1. In Ontario that licence covers banks and other financial institutions and lenders approved by CMHC. Private files go through my brokerage, Tango Financial, where a Level 2 agent arranges them (FSRA licensing guidance). I review your file, explain the costs and plan your way back to a bank.
What it costs, from one real file: a 12-month, $100,000 private second mortgage through my brokerage carried a $5,000 placement fee. That's 5%. Small loans run above typical, because every file takes a minimum amount of work. Every fee was disclosed in writing before signing. Read how private mortgages and the exit plan work before you decide.
The June 15 trap
Self-employed people can file later than everyone else. For 2025 returns, the deadline was June 15, 2026, but any balance owing was due April 30 (CRA). The lender wants your Notice of Assessment. The CRA aims to issue it within two weeks of an on-time digital return, and within 12 weeks of a paper one (CRA service standards).
So if you file on paper in June, your best year may not count until late summer. If you're buying in the spring, my advice is simple: file digitally, file early, pay the balance, then download the notice from your CRA account.
Your way back to a bank
A B lender or a private loan should come with an end date and a plan. FSRA says a plan that depends on prices going up isn't a valid one (FSRA). The plans that work are plain: file on time, show more income on the next return, pay down tax or card balances, then apply to a bank before the term ends. Already own and renewing? See mortgage renewal in Burlington.
Working with me
I compare options from 50+ lenders, including the big banks and lenders approved under the National Housing Act, and I start with what a bank can count. The first step is a free 15-minute call. Have your last two Notices of Assessment handy if you can. Please don't send your SIN or full financial documents by email.
"She was persistent in getting all documents in order before the bank needed it. She prepared us in a very organized way of what to expect at every phase."
Menucha Ossowiecki, Google review60+ Google reviews, rated 5.0.
Burlington office
- Address
- 5063 N Service Rd, Burlington, ON L7L 5H6
- Hours
- Monday to Friday, 9 am to 5 pm
- Phone
- (647) 642-7249
Jenny Tate, Mortgage Agent Level 1 (verify her licence on the FSRA public register). Brokerage: Tango Financial Mortgage (ON) Corporation.
Buying in Burlington? The Burlington office page has prices by community, down payments and land transfer tax.
Good to know
These examples are here to help you see your options. They're not advice, an approval or a quote from a lender. Lenders and insurers set their own rules and change them, and I can't promise which one will approve you or at what rate. Talk to your accountant about tax; I'm not one. Your lender's commitment letter has the real numbers.
Self-employed mortgage FAQ
Can I get a bank mortgage if I'm self-employed?
Being self-employed doesn't rule out a bank. CMHC insures mortgages for sole proprietors, partners and incorporated owners, and recommends at least 24 months in the business or the same line of work. The bank reads the income on your Notices of Assessment, so what decides it is usually how much income your tax return shows.
How do lenders work out self-employed income?
They start from the income on your tax return, backed by your Notice of Assessment and T1 General. Under CMHC's rules, a sole proprietor's or partner's income may be grossed up by 15%, or eligible deductions can be added back. Deductions the lender doesn't accept stay deducted.
Is there still a stated income mortgage in Canada?
Yes, through a private mortgage insurer. Sagen's Business for Self (Alt. A) program insures self-employed borrowers who can't provide traditional income verification, with at least two years in business, stated income that is reasonable for the business, and up to 90% loan-to-value on a purchase. The premium is higher than on a regular insured mortgage: 5.85% of the loan at 85.01% to 90% loan-to-value, for amortizations of 25 years or less.
When does a B lender make sense instead of a bank?
When the bank can't count enough of your income, for example because write-offs cut it too far or the business is new. Alternative lenders, such as Equitable Bank, look beyond the standard bank box at a higher cost. Before you accept one, ask whether bank lenders were tried first, what would have to change to qualify with a bank, and what the total cost and exit plan are.
Does Jenny Tate offer private mortgages?
Yes, through her brokerage, Tango Financial, where a Level 2 agent arranges them. Jenny reviews your file, explains the costs and plans your exit back to a bank lender. FSRA says private mortgages are usually a one- or two-year option and need a realistic exit plan.
When should I file my taxes if I'm applying for a mortgage?
As early as you can, and digitally. For 2025 returns, the self-employed had until June 15, 2026 to file, but any balance was due April 30. The CRA aims to issue a Notice of Assessment within two weeks of an on-time digital return and within 12 weeks of a paper return, and lenders ask for that notice.
Does it cost anything to work with Jenny?
Consultations with Jenny are free of charge. In most cases her fee is paid by the lender. A private mortgage can carry a brokerage fee, and every fee is shown to you in writing before you sign.
Sources and method
Every figure on this page was checked against these sources on October 19, 2026. The income and premium examples are hypothetical and calculated from the published rules. The "From my files" cases are real files, with details left out or rounded.
- Statistics Canada, Census Profile, 2021 Census of Population, Burlington, City (class of worker: 14,815 self-employed of 98,180), and the same profile for the City of Hamilton (36,990 of 282,910), labour data released November 30, 2022.
- CMHC, Self-Employed mortgage loan insurance (15% gross-up or add-back of eligible deductions; 24 months recommended; Notice of Assessment and T1 General).
- Sagen, Business for Self (Alt. A) (two years' tenure, 90% loan-to-value on purchases, premium table).
- Financial Consumer Agency of Canada, How much you need for a down payment (minimum down payment; sales tax on the insurance premium).
- Cornerstone Association of REALTORS, Burlington Monthly Indicators, September 2026 (median sale price, all residential; ITSO data, current as of October 2, 2026).
- Equitable Bank, Mortgage products.
- Financial Services Regulatory Authority of Ontario, Private mortgages; You got your client a private mortgage, but do they have a plan to get out?; New mortgage agent and broker licensing requirements (Level 1 and Level 2 scope).
- Canada Revenue Agency, Self-employed? Make filing easier with these tips, June 4, 2026; CRA service standards 2026-2027.
This page is general information, not financial, legal or tax advice, and not a commitment to lend. Rules and programs change; confirm your own figures with your lender, your accountant and the official sources.
Self-employed and ready to apply?
Book a free 15-minute call, or phone (647) 642-7249 on a weekday between 9 am and 5 pm. Have your last two Notices of Assessment in front of you.
Jenny Tate
Mortgage Agent Level 1 · FSRA #M22002086 · MBA in Finance · Lean Six Sigma Black Belt
Jenny Tate is a Burlington-based Mortgage Agent Level 1 at Tango Financial Mortgage (ON) Corporation. She works with self-employed borrowers, including stated income and business-for-self files, and serves clients across Ontario online.