Alberta self-employed mortgage preparation guide

1. Describe how you earn and pay yourself

Start with a one-page explanation of the business, your ownership share, when it began and how income reaches your personal accounts. Explain seasonal patterns and material changes without assuming the lender will accept the highest recent month.

• □Business structure: sole proprietor, partnership or corporation.
• □Income types: business income, salary, dividends, draws or other sources, with supporting records.
• □Recent changes: incorporation, ownership changes, new contracts or a shift from employment to self-employment.
• □Known obligations: business borrowing, personal debts, guarantees and tax balances.

2. Organize the income evidence

Ask which years and periods the lender needs before ordering or sending the full package. CMHC describes several documentation options for eligible insured files; this is not a promise that every lender or mortgage will use the same method.

• □Personal income tax returns and corresponding Notices of Assessment for the requested years.
• □Business financial statements and current results where requested.
• □Business registration, licence or incorporation records to establish the operating history.
• □Relevant bank statements, signed contracts and other records that explain current activity.
• □Salary or dividend records where applicable, reconciled with the tax and business documents.
• □Evidence requested for tax balances or payment arrangements; disclose outstanding amounts early.

3. Separate business cash from purchase funds

Show where the down payment and closing funds come from and when they are available. Money in a business account is not automatically interchangeable with your personal savings. Ask your accountant about the implications of moving funds before doing so.

• □Statements for the accounts holding your purchase funds and records explaining substantial transfers.
• □Documentation for a gift, asset sale or other source if applicable.
• □A separate estimate for legal costs, inspections, adjustments and other closing expenses.
• □Cash retained for normal business expenses and personal contingencies after the purchase.

4. Make the income discussion precise

Illustrative example: an owner receives salary and dividends from a corporation. The broker should establish the documented personal income and the lender’s permitted treatment of corporate information. Adding company revenue to salary and dividends can double-count the same money. This example is not an income-qualification calculation.

• □Ask which income figure is being used and which documents support it.
• □Ask whether an average, a recent lower year or another permitted method applies to the specific product.
• □Ask which expenses, if any, can be added back under that lender or insurer’s rules.
• □Record the remaining conditions, expiry dates and circumstances that could change the assessment.

5. Plan the home purchase around the conditions

A pre-approval helps establish a starting budget but is not final approval for every property. Confirm the property, contract deadlines, income evidence and available funds before relying on financing. If the business will occupy a commercial building, use our commercial checklist instead of treating it as a residential application.

6. Prepare a focused first conversation

Bring the purchase timeline, desired price range, down-payment source, a short income summary and any known complications. Your broker can then identify the appropriate document request and secure submission method. Do not put tax returns, account numbers or identity documents in a public contact message.