Mortgage Solutions Designed for Self-Employed Manitobans

By Avaljit Sandhu – Mortgage by Aval Sandhu

Owning a home in Winnipeg or anywhere in Manitoba is a dream for many, but if you’re self-employed, getting a mortgage can feel like an uphill battle. Unlike salaried employees, proving your income as a business owner, freelancer, or contractor can be a challenge. That’s where self-employed mortgages come in!

As a Winnipeg-based mortgage expert, I help self-employed Manitobans secure home financing that fits their unique income situation. Whether you’re a small business owner, gig worker, or incorporated professional, this guide will help you understand self-employed mortgage options in Manitoba and how to qualify.

What Is a Self-Employed Mortgage?

A self-employed mortgage is designed for individuals in Manitoba who don’t receive a traditional paycheck but earn income through their business, freelancing, or contract work. Since your tax returns may show lower income due to business expenses and deductions, some lenders offer more flexible mortgage options to help you qualify.

Who Qualifies as Self-Employed?

Small business owners in Winnipeg & Manitoba
Contractors and freelancers (plumbers, electricians, IT professionals, etc.)
Gig workers (Uber drivers, delivery workers, online entrepreneurs)
Realtors, consultants, and commission-based salespeople
Professionals who own incorporated businesses

Pros of Getting a Self-Employed Mortgage in Manitoba

✅ Access to Competitive Rates – With a strong credit score and good financials, you can qualify for the same rates as traditional borrowers.

✅ Higher Mortgage Amounts – Some lenders accept stated income mortgages, allowing you to qualify for more than what your tax return might show.

✅ Flexible Approval Process – Many alternative lenders in Winnipeg and Manitoba offer mortgage approvals faster than traditional banks.

✅ Tax Benefits – Self-employed individuals can still write off business expenses while qualifying for a mortgage.

Cons of Getting a Self-Employed Mortgage

🚨 Not All Banks Offer Self-Employed Mortgages – The big banks (TD, RBC, BMO, etc.) have strict lending rules and may not approve self-employed applicants with fluctuating income.

🚨 Higher Interest Rates – If your income is harder to verify, lenders may charge higher rates due to the added risk.

🚨 More Paperwork – You may need to provide bank statements, tax documents, and business records to prove your income.

Types of Lenders That Offer Self-Employed Mortgages in Winnipeg & Manitoba

1. “A” Lenders (Major Banks)

Includes RBC, TD, Scotiabank, BMO, CIBC, and National Bank. These banks have strict mortgage rules and require 2- years of tax returns and financial statements.

2. “B” Lenders (Alternative Lenders)

Lenders like Equitable Bank, Home Trust, and MCAP offer more flexible self-employed mortgage options but may charge slightly higher rates.

3. Private Lenders

If you have low income on paper, poor credit, or need fast approval, private lenders may offer financing. However, interest rates are much higher (7%-18%), so this is a last resort option.

Different Mortgage Types for Self-Employed in Manitoba

1. Stated Income Mortgages

Requires 20% down payment
No income verification required
Higher rates due to risk

2. Insured Stated Income Mortgages

Requires at least 5% down
Must have good credit and mortgage insurance
Lower interest rates than private lending

3. Sagen’s Business for Self (Alt. A) Program

Ideal for Manitobans with 2+ years in business
Requires proof of business registration & financial stability
Not available for rental properties

Self-Employed Mortgage Qualifications in Winnipeg & Manitoba

1. Income Verification

Traditional: Use tax returns (T1 General, NOA)
Non-Traditional: Use bank statements & financial records
Stated Income: No proof of income needed, but higher down payment required

2. Minimum Down Payment

5% down for insured mortgages
20% down for stated income mortgages

3. Required Documents

Business registration number
GST/HST account number
Notice of Assessment (past 2-years)
Bank statements to show cash flow

CMHC Self-Employed Mortgage Insurance

The Canada Mortgage and Housing Corporation (CMHC) offers mortgage insurance for self-employed borrowers in Manitoba who can verify their income.

✅ Loan-to-Value (LTV): Up to 95% financing
✅ Minimum Credit Score: 650
✅ Amortization Period: Up to 25 years

This program is not available for stated income mortgages—you must verify your income.

Features of Sagen’s Alt. A Program for Self-Employed Manitobans

Sagen’s Business for Self (Alt. A) Program is one of the best self-employed mortgage options in Winnipeg & Manitoba:

Available for purchases & refinances
Can finance up to 90% of the property value
Requires at least 2 years in business
Must show proof of income & business operation

Self-Employed Mortgage FAQs for Manitobans

1. Can I get a mortgage if I just started my business?

Most lenders require 2 years of self-employment. However, alternative lenders may consider newer businesses with strong bank statements.

2. Do I need a higher down payment as a self-employed borrower?

It depends. Traditional lenders require 5-10% down, but a stated income mortgage may need 20% down.

3. Can I use my business income to qualify?

Yes! Lenders will look at bank statements, business revenue, and financial records to determine how much you can borrow.

4. What if my credit score is low?

If your credit score is below 600, you may need a B lender or private lender, but expect higher rates.