Can I get a mortgage in Ontario if I'm newly self-employed (less than 2 years)?

Yes. A mortgage in Ontario can be prepared when you have been self-employed for less than two years. Fewer lenders will look, and the file is built from the returns, statements, and contracts you already have.

What a shorter history changes

Two filed years is the package many lenders ask for first. With less than that, there is no two-year average. The application uses the notice of assessment that exists, the matching T1, the business account from the day it opened, and contracts or invoices for work in hand. A lender can still decline. MKG Mortgages prepares these files from the North York office for clients across Ontario.

Some insured stated-income programs look for about two years in the business. A newer business is often a different program, or a plan to revisit the file after a second year of filings. The longer checklists are on the self-employed mortgages page, the document guide, and the stated income note.

What to bring

• The notice of assessment for each year you have filed, and the T1 that produced it.
• Business registration, articles, or the HST account, so the legal name is clear.
• Bank statements for the business from opening day.
• Contracts, invoices, or a year-to-date profit and loss.
• The purchase agreement or the current mortgage statement.

A co-signer whose income is documented in the ordinary way can sit beside that package when it helps. A private mortgage can cover a short gap when a closing date will not wait. What replaces that private mortgage is written down before anyone advances funds.

Illustrative example

Illustrative example. A contractor in Brampton has been incorporated for 14 months. One notice of assessment is filed. The business account shows deposits from opening day, and two signed contracts cover the coming season. The package is those records. It is not a two-year average, and it is not a commitment from a lender.

Frequently asked questions

Can I apply with less than two years in business?

Yes. The file is sent with the history you have. Fewer lenders will consider it, and each lender still decides.

Do I need two notices of assessment?

No. Two notices are the usual request when they exist. One filed year, plus year-to-date statements and contracts, is a complete file for the lenders that will read a shorter history.

Will a stated-income program accept a new business?

Many of those programs look for about two years. A business under that is described as under that. It is matched to a program that can read a shorter history, or it waits for the next filing.

Where are these files handled?

From the North York office, for properties in Ontario. Start with self-employed mortgages or contact the office.