British Columbia
High prices make the gap between net income and business revenue decisive.
The short answer
In Vancouver, a stated income mortgage qualifies a self-employed borrower on documented business deposits and financial statements rather than the net taxable income on a T1. At Vancouver price levels, that difference in qualifying income routinely moves the approval by several hundred thousand dollars.
Because the benchmark price is among the highest in Canada, a write-off-heavy tax return often fails the debt-service test outright. Using documented revenue is frequently the only route to an approval, not just a better one.
Condos and townhomes dominate the market, so the lender reviews the depreciation report, strata minutes and maintenance fees alongside your business documentation. Fees count against your debt-service ratios.
Film crew, designers, tech contractors and consultants all invoice rather than collect a T4. Lenders active in Vancouver are used to reading twelve months of deposits from mixed contract sources.
Documented revenue is totalled, a reasonable industry expense factor is deducted, and the resulting qualifying income is tested against debt-service limits at the stress test rate. See the full step-by-step breakdown for the numbers.
Illustrative case studies
Incorporated renovation contractor, 6 years in business
A Vancouver buyer with strong credit, a 20% down payment and two years of filed returns showing heavy but legitimate write-offs.
How the income is calculated
Roughly $634,032 in mortgage capacity on stated income, versus about $289,044 on the net figure alone.
Commission-only realtor, 4 years licensed
A Vancouver buyer with strong credit, a 20% down payment and two years of filed returns showing heavy but legitimate write-offs.
How the income is calculated
Roughly $666,666 in mortgage capacity on stated income, versus about $331,002 on the net figure alone.
Sole-proprietor IT consultant on long-term contracts
A Vancouver buyer with strong credit, a 20% down payment and two years of filed returns showing heavy but legitimate write-offs.
How the income is calculated
Roughly $636,363 in mortgage capacity on stated income, versus about $270,396 on the net figure alone.
For demonstration purposes only. These case studies are hypothetical examples created to show how stated income calculations work. They are not real clients, not guarantees, and not an offer of credit. Actual qualifying income, rates and approvals depend on the lender, your documentation, credit profile, down payment and the property.
Yes. The income method is independent of property type. The lender will also review the strata's status and depreciation documents before funding.
Above $1M, insured financing is unavailable, so a minimum of 20% down applies regardless of employment type. Self-employed programs below that threshold often ask for more than the minimum.
Send your details and we'll review your business income the way a self-employed lender does — no credit pull to start the conversation.