Self-Employed Mortgage Lenders Canada: Bank vs B Lender vs Private Lender

If you’re self-employed and looking for a mortgage, you’ve probably already learned one thing the hard way: getting approved isn’t as simple as showing a paystub.

How Self-Employed Mortgage Lenders Canada Evaluate Your Income

Banks, B lenders, and private lenders all look at income differently—and choosing the wrong one can mean a decline, higher rates than necessary, or wasted time.

So let’s break it down in plain English and help you figure out which option actually makes sense for your situation.

What Are Self-Employed Mortgage Lenders Canada Looks At Differently?

Before we compare lenders, here’s the big picture.

Self-employed borrowers often:

• Write off expenses to reduce taxes

• Have fluctuating income

• Get paid through corporations or dividends

• Don’t fit neatly into a “9–5 salary” box

That’s why Self-Employed Mortgage Lenders Canada options exist in different tiers. Each lender type has a different tolerance for risk—and flexibility.

Banks: Lowest Rates, Highest Bar

Traditional banks are usually the first place people think to go. And yes, they can offer great rates—but only if you fit their box.

Pros

• Lowest interest rates

• Best long-term mortgage products

• Ideal for clean, predictable income

Cons

• Very strict income verification

• Uses T1 Generals and NOAs heavily

• Write-offs hurt approval

• Little flexibility for unique situations

Best for: Self-employed borrowers with strong declared income, minimal write-offs, and clean tax filings.

B Lenders: The Middle Ground for Self-Employed Borrowers

B lenders are where many self-employed clients actually get approved—especially when banks say no.

Why Self-Employed Mortgage Lenders Canada Often Include B Lenders

B lenders understand that self-employed income isn’t always black and white.

Pros

• More flexible income calculations

• Can use bank statements instead of tax returns

• Still regulated lenders

• Shorter terms to “fix” your situation

Cons

• Higher interest rates than banks

• Lender fees (usually 1%)

• Typically 1–3 year terms

Best for: Business owners with solid cash flow but aggressive write-offs or recent income changes.

Private Lenders: Fast, Flexible, and Short-Term

Private lenders focus less on income and more on equity.

Pros

• Approval based mainly on property value

• Minimal income verification

• Fast approvals

• Useful in urgent situations

Cons

• Highest interest rates

• Short-term only

• Higher lender and broker fees

• Not a long-term solution

Best for: Short-term needs, bruised credit, or when timing matters more than rate.

So… Which Self-Employed Mortgage Lenders Canada Option Is Best?

There’s no one-size-fits-all answer.

The best lender depends on:

• How you pay yourself

• How much you write off

• Your credit profile

• Your timeline

• Your long-term plan

Sometimes the smartest move is not the lowest rate—but the lender that gets you approved now and into a better position later.

That’s why working with someone who understands Self-Employed Mortgage Lenders Canada options matters more than applying everywhere and hoping for the best.

Final Thoughts

If you’re self-employed, don’t assume:

• A bank is your only option

• A decline means you’re “unmortgageable”

• A private lender is a failure

Each lender type serves a purpose. The key is choosing the right one for your situation—and having a plan to move forward.

If you want to talk through your options and see what actually makes sense for you, that’s exactly what I help with.