📄 Self-Employed Mortgages — Thrive Mortgage

Overview
Being self-employed shouldn’t stop you from qualifying for a mortgage—even if traditional lenders find your income reporting complex. Thrive Mortgage helps self-employed individuals access home financing solutions by working with lenders that consider alternative income documentation.

🧠 Key Concepts

✅ Qualifying for a Self-Employed Mortgage

  • Traditional lenders often require two years of stable tax-reported income, which can be difficult for self-employed applicants.

  • Thrive Mortgage can work with six months of income statements (annualized by doubling gross deposits) to help you qualify, even without long tax histories.

  • Gross business revenue, retained earnings, dividends, commissions, or T-salary income may be used to support income qualification.

📊 How Income Is Considered

💡 Standard vs. Alternative Methods

  • Many banks focus on net income (Line 150) averaged over two years. If this is low (e.g., due to tax strategies), it may reduce mortgage qualification.

  • Thrive can apply a “gross-up” (e.g., +15%) or add-backs from tax schedules to better represent your real earning capacity.

  • If net income is too low or you have less than two years in business, qualifying with just six months of revenue may still be possible.

📄 Required Documentation

To prove income and business activity, lenders commonly ask for:

  • Personal tax returns (T1 Generals) for the last two years

  • Notices of Assessment (NOAs)

  • Articles of incorporation (if applicable)

  • HST registration or business registration documents

  • Six months of bank statements showing revenue deposits

📌 Seasonal & Other Situations

  • Seasonal income is treated like regular income — lenders apply the same average income rules regardless of seasonality.

🧾 Tips for Applicants

  • Work with your accountant & broker early to prepare documentation and explain your business income clearly to lenders.

  • Having detailed bank statements and a strong business story makes it easier for alternative lenders to assess your eligibility.