What Are Loans for Self-Employed?
Self-employed income doesn't come with a T4 or employer letter, which can complicate approval at traditional banks. Lenders who work with self-employed borrowers instead rely on bank statements, Notices of Assessment, or invoicing history to verify income — recognizing that steady self-employment income is just as real as a paycheque.
Who It's For
- Small business owners and sole proprietors
- Independent contractors and consultants
- Those with an established self-employment history, though exact requirements vary by lender
- Business income that's steady even if it doesn't come with traditional pay stubs
What You'll Need
- Bank statements showing regular business or personal deposits, typically 3-6 months
- Notices of Assessment (NOA) or T2125 forms from recent tax filings
- Invoices or contracts demonstrating ongoing client relationships
Things to Consider
- Lenders often average income over a longer period for self-employed applicants, so a strong recent year can offset a weaker earlier one.
- Keeping business and personal banking separate makes it easier to demonstrate clean, verifiable income.
- A higher, well-documented net income (after expenses) generally strengthens an application more than gross revenue alone.
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How to Apply for Loans for Self-Employed
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Step 2
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Step 3
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