Mortgages for self-employed people in Red Deer

Who this page is for

Red Deer has a lot of people who work for themselves: electricians, welders and hotshot drivers, oilfield consultants on contract, salon owners, farm families, and incorporated professionals who pay themselves partly in dividends. Lenders handle each of those differently, and the right one for you depends on how your income shows up on paper.

What lenders usually want

• Two years of personal T1 Generals and Notices of Assessment, with no tax owing to CRA
• For a corporation, two years of financial statements prepared by your accountant
• Proof the business has run at least two years (articles of incorporation, a GST number or a business licence)
• Business bank statements if we're looking at stated-income or alternative options

Write-offs and add-backs

Deductions that lower your tax also lower your qualifying income. Some lenders add back items like depreciation (capital cost allowance), home office costs or a portion of vehicle expenses; some average two years of income while others use the lower year. Getting the lender match right can change your approval amount by tens of thousands of dollars.

When the bank says no

If your declared income is low because of genuine write-offs, alternative lenders may consider a reasonable stated income backed by bank deposits, often with a larger down payment and a higher rate. I treat these as a bridge to a regular lender, not a permanent home, and I'll explain the costs and the exit plan up front.

Six months before you apply

Talk to your accountant about how much income to declare, file your taxes on time, keep personal and business accounts separate, and avoid financing new equipment just before you apply. Small moves now make the file much easier later.