Self Employed Mortgages in Markham: Banks, B Lenders and Private Lenders Compared
Neeraj Moolchandani is a top real estate agent in Markham, Ontario. Published November 13, 2026 · By Neeraj Moolchandani, REALTOR®, Cofounder of the Kaizen Real Estate Team, eXp Realty, Brokerage
The short answer
Many Markham business owners earn well but show modest personal income for tax reasons, which makes a bank mortgage harder. CMHC's self employed program generally recommends two years in business and verifies income with Notices of Assessment and T1 Generals. When a bank says no, B lenders look at income more flexibly for a higher rate and fees, and private lenders and mortgage investment corporations lend mainly on the property for higher costs again. Compare the full cost, and plan your path back to a bank before you sign.
Markham has many incorporated professionals, consultants and business owners. Our Kaizen Real Estate Team is one of the teams they trust when buying, and the mortgage often decides the timeline. Here is how the lending options compare. This is general information; your mortgage broker and accountant should advise on your file.
Self employed and planning to buy? Talk to Neeraj early so the timing fits your mortgage.
Call (647) 370 8885Why Business Owners Get Declined
Lenders qualify you on the income you report personally. Many owners pay themselves a modest salary or dividends and leave profit in the company. That is sensible for tax, but it can shrink the income a lender will count. Strong company cash flow does not always show on your personal return.
What CMHC Accepts
For insured mortgages, CMHC's self employed program recommends at least 24 months operating the business or experience in the same line of work. Borrowers provide a Notice of Assessment with a T1 General and a statement of business activities. For sole proprietors and partnerships, income may be grossed up by 15% or adjusted for eligible deductions. Loans of up to 95% of value are possible on one to two unit homes under $1,500,000.
Want a referral to a broker who works with business owners? Ask Neeraj.
Call (647) 370 8885Three Types of Lenders
| Lender type | How they view income | Typical tradeoff |
|---|---|---|
| Banks and A lenders | Personal tax returns, often two years averaged | Lowest rates; strictest income rules |
| B lenders | More flexible review, such as bank statements and business financials | Higher rate and a lender fee; larger down payment |
| Private lenders and MICs | Focus mainly on the property and equity | Highest rates and fees; short terms |
Ontario's regulator, FSRA, notes that private mortgages often carry higher rates and fees and may not suit some consumers. Brokers must disclose any relationship with a mortgage investment corporation and the full cost of borrowing.
Comparing a bank offer with a B lender? Neeraj can help you weigh the home side.
Call (647) 370 8885Compare the Full Cost, Not Just the Rate
- Interest rate and term length.
- Lender fee and broker fee, often a percentage of the loan.
- Appraisal and legal costs.
- Prepayment penalties if you refinance early.
- Renewal terms if you cannot move to a bank on schedule.
Ask your broker for the annual percentage rate, which includes fees, so you can compare offers on the same basis.
Build Your Exit Plan
A B or private mortgage works best as a bridge. Before you sign, agree with your accountant and broker on what needs to change for a bank to approve you, and when:
- Decide how much income to report personally over the next one to two years.
- Keep business and personal finances clearly separated.
- File taxes on time and keep Notices of Assessment ready.
- Pay every bill on time to protect your credit.
- Choose a term that ends when you expect to qualify with a bank.
Buying Through Your Company Instead?
Some owners consider buying property through their corporation. That changes the lending, tax and exit picture again; read our guide on buying through a holding company first. For down payment basics, see our post on buying with a lower down payment.
Have a question about buying as a business owner? Call Neeraj.
Call (647) 370 8885Questions Markham Clients Ask
Can I get a mortgage if I am self employed in Markham?
Yes. Banks, B lenders and private lenders all lend to self employed buyers. The main difference is how they verify income and what it costs.
How long do I need to be self employed for a mortgage?
CMHC recommends at least 24 months operating the business or experience in the same line of work for its insured self employed program, though other factors can help.
What is a B lender?
A lender that reviews income more flexibly than a bank, usually for a higher rate, a lender fee and a larger down payment.
What is a mortgage investment corporation?
A pool of investor money that makes private mortgages. These loans usually cost more and have shorter terms, and brokers must disclose any relationship with the MIC.
How do I move from a B lender back to a bank?
Work with your accountant on the income you report, keep good credit, and choose a term that ends when you expect to qualify with a bank.
Keep Reading
Helpful Pages
Plan the Mortgage and the Move Together
Neeraj will help you time your purchase around your financing and connect you with professionals who work with business owners.
Sources: CMHC, Self employed mortgage loan insurance; FSRA, Brokerages placing borrowers with related MIC lenders.
Neeraj Moolchandani, REALTOR®, Kaizen Real Estate Team, eXp Realty, Brokerage, 9763 Markham Rd, Markham, ON L6E 1A4. (647) 370 8885 · info@kaizenrealestate.ca. Published November 13, 2026. General information only, not legal, tax, financial or engineering advice. Rules and programs change, so confirm details with the official source and your own professionals before you act. Not intended to solicit properties currently under contract.
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