Tradesperson
Stated Income Mortgages for Tradespeople and Contractors
Tradespeople and contractors
The short answer
Tradespeople and contractors use a stated income mortgage to qualify on the revenue their business invoices, supported by financial statements and bank deposits, rather than the net income left after tools, trucks, materials and subcontractor costs.
Why the usual approach undercounts you
- Tools, trucks, fuel, insurance, materials and subcontracted labour are large legitimate write-offs.
- Work can be weather-dependent and seasonal, especially in Alberta.
- Payments arrive as progress draws rather than a regular payroll cycle.
What lenders ask for instead
- Business licence, WCB account or incorporation documents
- 6–12 months of business bank statements
- Recent financial statements or an income and expense summary
- T1 General and Notice of Assessment for the last two years
- Photo ID
Required documents vary by lender and by file.
How the numbers usually change
A two-person contracting company invoicing steadily through the year may report very little net income once equipment, vehicles and subtrades are deducted. Reviewing invoiced revenue and reasonable add-backs presents a qualifying income that reflects what the business actually earns.
Not sure what your business income qualifies for?
Send a few details and we'll show you the number a self-employed lender would actually use.
Common questions
I get paid by cheque and e-transfer from several builders. Does that work?
Yes, provided the payments consistently land in a business account that can be reviewed.
Does a slow winter hurt my application?
Seasonality is expected in the trades. A twelve-month review is normally used so quiet months are averaged in.
Other occupations we work with
Ready to see what you qualify for?
Send your details and we'll review your business income the way a self-employed lender does — no credit pull to start the conversation.