Mortgage Solutions · Markham

Self-Employed Mortgages
in Markham.

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Let’s talk business income.

Key Takeaways
  • Markham’s tech corridor runs on incorporated contractors and consultants — high earners whose T1s are deliberately small
  • At roughly $1,100,000 average, the gap between declared income and real income decides what you can buy here
  • Corporate bank statements and retained earnings can be read as qualifying income by Alt-A and B lenders
  • Roughly 0.5% to 1% above prime is the going premium — often less than the tax cost of paying yourself enough salary to satisfy a bank

Markham may be Canada’s densest concentration of the politely misunderstood borrower: the incorporated IT contractor. Add consultants, import-export entrepreneurs, clinic owners, and family businesses from Unionville to Milliken, and you have a city of six-figure earners whose personal tax returns say otherwise — on purpose.

Banks read those returns literally. We don’t. Here’s how self-employed and incorporated Markham buyers actually get financed.

The Incorporated Contractor Problem

The standard Markham tech arrangement — bill through a corporation, pay yourself a modest salary or dividends, retain the rest — is excellent tax planning and terrible mortgage optics. A prime lender sees the $60,000 salary, not the $200,000 the corporation invoiced. Two-year averaging makes it worse for anyone who incorporated recently.

At Markham prices — the average sits near $1,100,000 — qualifying on that salary line means shopping for a mortgage two brackets below your means. The corporation’s money is real; it’s just parked where personal-income underwriting refuses to look.

Three Ways Lenders Can See Your Real Income

Salary + dividends, two-year average

The prime route. Works when you’ve deliberately paid yourself enough, consistently, for two tax years — cheapest rates, full stress test on the declared number.

Insured business-for-self

Two years’ tenure, strong credit, income declaration reasonable for your field — flexible documentation from around 10% down at near-prime pricing.

Corporate cash flow / bank statements

Alt-A and B lenders read 6 to 12 months of corporate or personal statements — invoiced revenue, retained earnings, steady deposits — and derive qualifying income from the business reality.

Private (bridge cases)

For complex structures or very short tenure, private lending can hold the purchase while documentation matures. Always framed as a bridge, never a destination.

Pricing the Trade-Off at Markham Numbers

Bank-statement and corporate-cash-flow lending typically costs about half a percent to one percent above the lowest prime rates, at 20% down:

Typical Markham purchase20% down paymentMortgage financed
$750,000 condo or townhome$150,000$600,000
$1,100,000 average detached/semi$220,000$880,000
$1,400,000 Unionville-area detached$280,000$1,120,000

Now the other column: to qualify prime for an $880,000 mortgage, many contractors would need to pay themselves — and be taxed on — well over $150,000 for two consecutive years. The extra personal tax across those years frequently exceeds the entire B-rate premium on a short term. That’s the honest comparison, and it’s why the statement route is often the financially rational one, not the fallback.

Documentation, Contractor Edition

Corporate and personal bank statements (6 to 12 months), articles of incorporation, two years of T1s and NOAs with no tax owing, corporate financials or a simple revenue summary, active contracts or MSAs, and HST returns. Contracts matter more here than in most cities — a 12-month renewal with a recognizable client reads like job security to a good underwriter.

A Lender Menu as Deep as Markham’s Talent Pool

Since 1988 we’ve matched borrowers to 40+ lenders, and Markham’s incorporated professionals are one of our most common — and most successfully placed — profiles. We know which lenders read corporate cash flow generously, which insurers’ business-for-self programs suit consultants, and how to sequence a file so today’s B term becomes next cycle’s prime refinance. Free consultation; bring your structure and we’ll bring the map.

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Rated 5.0 by 210+ clients.

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I had a fantastic experience working with Neil Drepaul. He helped me navigate the entire mortgage process from start to finish with incredible professionalism. What really stood out was his kindness and patience; no matter how many questions I had, he took the time to answer every single one thoroughly.

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Indira Sumair
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★★★★★

It would be an understatement to say that Neil went above and beyond in guiding my family through the journey to homeownership. He was always available to inform, support, and present us with the best options possible.

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Marc Biglary
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★★★★★

Neil was fantastic, he went above and beyond to help us get our mortgage. He was swift with communication and made the process easy.

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Angela McEachern
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FAQ

Self-Employed Mortgages in Markham: your questions.

I’m an incorporated IT contractor in Markham paying myself $70,000. What can I qualify for?
On the prime side, roughly what any $70,000 earner qualifies for — which won’t go far here. Through corporate-cash-flow or bank-statement programs, lenders can recognize income derived from your corporation’s 6-12 months of deposits and retained earnings, often multiplying your effective qualification. Credit strength and contract stability set the ceiling.
Does contract work count as self-employment for mortgage purposes?
If you invoice through a corporation or as a sole proprietor rather than receiving a T4, yes — and you gain access to the same alternative income treatments. Incorporated contractors with long-running client relationships are actually among the strongest alternative files.
What happens at renewal if I start on a B lender?
That’s the plan working: we typically write one- to three-year B terms, then refinance toward prime once your declared income, tenure, or documentation supports it. Markham files often graduate after a single term.
Is 20% down mandatory for the corporate-cash-flow route?
Generally yes on the B side — and at Markham prices that’s a substantial cheque, so we always test insured business-for-self eligibility (from about 10% down) first. Larger down payments also buy visibly better B pricing, so where you land between 20% and 35% matters.
Can new immigrants who own businesses qualify?
Often, yes — Markham’s newcomer entrepreneurs are a file type we know well. Lenders weigh Canadian banking history, business tenure and credit depth; where Canadian history is short, strong statements plus larger down payments open doors, and some programs are explicitly newcomer-friendly.

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