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I see the same look every time.

Pure astonishment.

A business owner sits across from me, convinced they can’t qualify for the mortgage they need. Their accountant told them they’d need to report more income. Their bank said the same thing. They’ve accepted it as fact.

Then I show them there’s another path entirely.

Most self-employed Canadians have no idea this choice exists. Banks do most of the mortgages in Canada. They do most of the marketing. And they only offer one way to qualify.

But that’s because it’s the only way they can offer.

When you apply for a mortgage as a business owner, you have two completely different qualification paths.

Path one: Qualify based on your personal taxable income. What you report to the CRA on your tax return.

Path two: Qualify based on your business revenue. What’s actually flowing through your business bank account.

Banks only have access to path one. They look at your personal income, maybe add back some expenses or bump up with some corporate profits if you’re incorporated, and that’s it.

The business revenue path opens something entirely different.

I call it looking at the the pulse of your business. We get 12 months of business bank statements. We verify deposits against invoices or point-of-sale statements. We calculate your actual fixed expenses: rent, wages, insurance, utilities, vehicles.

Then we prepare a simple revenue and expense statement. The net profit becomes your qualifying income.

Traditional lenders use two-year income averaging from your tax returns. If your most recent year is lower than the previous year, they only use the recent figure. If you jumped from $50,000 to $100,000, they average it to $75,000.

The 12-month bank statement shows current, active income generated by your business.

For new businesses or businesses in growth mode, this difference is massive.

I’ve had clients with a two-year average under $50,000 on their tax returns. Their most recent 12 months of bank statements showed $250,000 in profit.

That’s the difference between qualifying for a property under $300,000 or a property over a million dollars.

Same person. Same business. Drastically different borrowing power.

Here’s what drives that gap.

Smart business owners minimize taxable income. They write off everything they legally can. Startup costs, equipment, expenses. Their accountant helps them pay less tax.

That strategy works beautifully until they want to buy a home.

Suddenly, what was good for taxes becomes terrible for mortgage qualification. You’ve spent two years reporting minimal personal income. Now the bank looks at those same returns and says you can’t afford the mortgage.

But your business is generating solid revenue. You have cash flow. You feel stable and confident.

The frustration I hear most often: “It’s really their money.”

Business owners see $250,000 flowing through their business and can’t understand why the bank says they only make $50,000. They don’t understand the separation between business income, profit, expenses, and personal draws.

Traditional lenders see risk. No paycheck means no guarantee of income. You control what you pay yourself. So they look back over time to understand what you consistently draw from the business to service a mortgage.

The business bank statement route has costs.

You need 20% down. These alternative lenders don’t offer the mortgage insurance route like traditional banks do.

You’ll pay a lending fee at closing, typically 2% of the borrowed amount.

Interest rates start around 5% versus the 4% range for traditional mortgages right now.

But here’s the calculation that matters.

Money spent on a higher rate or lending fee can be money saved on income tax. If you maintain a lower personal tax return, you reduce your tax bill. For some entrepreneurs, the alternative solution becomes their forever solution.

The other factor is what your business needs right now.

Are you in growth mode? Reinvesting in people, inventory, equipment? Pulling money out to report higher personal income could be detrimental to your business growth.

I’ve seen the correlation. The down payment for entrepreneurs typically comes from their business. Home ownership brings a huge increase in expenses. If you trace business struggles back far enough, the home purchase can be what flipped that switch.

If you’re planning to go the traditional route, you need two to three years of runway. Report the required personal income. Pay the taxes. Build the paper trail lenders want to see.

The business bank statement route compresses that timeline. You need 12 months of statements showing solid revenue.

You might be ready to move forwar today.

The real power is using it as a bridge.

Take a one, two, or three-year term with an alternative lender. Get into the home today. Start setting up your taxes to qualify traditionally. Once you’ve reported higher income over two years, we move you to a traditional lender.

Nothing is forever. Traditional or alternative lending can be a stepping stone. The strategy can change. The home might even be a stepping stone, housing needs can change.

It’s about choosing what’s appropriate for where you’re at right now and the foreseeable future, then adjusting as changes are needed.

I’ve seen the correlation. The down payment for entrepreneurs typically comes from their business. Home ownership brings a huge increase in expenses. If you trace business struggles back far enough, the home purchase can be what flipped that switch.

If you’re sitting there thinking “I see $250,000 flowing through my business but the bank says I only make $50,000,” here’s your first step.

Work with someone who understands all your options and can present them clearly.

Different paths have different timelines. Understanding in advance where you’re at and what you need to do to get where you want to be matters more than rushing into the first solution someone offers.

The traditional mortgage route isn’t bad. Access to home equity through a line of credit can be a lifeline when your business needs cash. Businesses are cyclical. Having a tool to access cash quickly is a huge asset.

But you can’t make an informed decision until you see what both paths would actually give you.

Most business owners I meet have been told there’s only one way. They’ve accepted limitations that don’t actually exist. They’re planning their entire tax strategy around mortgage qualification without knowing there’s another option.

That astonishment I see when I explain the business revenue path? It reveals how little most entrepreneurs know about choices that could change their entire financial picture.

The banks aren’t hiding this from you deliberately. They genuinely can’t offer it.

But that doesn’t mean it doesn’t exist.

Let’s explore your real options — book a consultation today.