May 12, 2025
If you own an incorporated business and you're looking to buy a home or refinance, you may have already heard that qualifying for a mortgage can be more complicated when you're self-employed. The good news is that there are flexible programs designed specifically for incorporated individuals, including Sagen's Business-for-Self (Alt-A) Program, which takes a more realistic view of your income.
To be eligible for this program, you must have been operating as an incorporated business for at least two years. You should own 100% of the business or be a majority shareholder, and you’ll need to provide supporting documents like your T1 Generals, Notices of Assessment (NOAs), and ideally, accountant-prepared financial statements. A down payment of at least 10% is required, though a higher down payment—20% or more—typically strengthens your application. Your credit history also plays a role, with a beacon score of 680 or above being ideal.
One of the biggest challenges for incorporated business owners is that your taxable income is often minimized through deductions, leaving your personal income on paper much lower than what you actually earn. This is where Sagen’s program stands out. Rather than relying solely on your line 15000 from your tax return, lenders using this program apply what’s called a "reasonability" test. They’ll look at the full financial picture of your corporation, including gross or net revenue, retained earnings, salaries paid to yourself or related parties, and sometimes even add-backs for depreciation or non-cash expenses.
For example, consider someone who owns a marketing agency. They may only declare $45,000 in taxable income on their personal return because the business income is left in the corporation or used for legitimate expenses. However, if the company generates $300,000 in annual revenue and has consistent year-over-year growth, lenders may determine that this individual reasonably earns the equivalent of $90,000 to $120,000 annually for mortgage qualification purposes.
To support your application, you’ll generally need to submit two years of personal T1 Generals and NOAs, proof of incorporation, recent business financials (especially if prepared by an accountant), and three to six months of business bank statements. A clean, organized financial profile—especially a strong credit score and manageable debts—goes a long way in helping your application move smoothly.
The key takeaway here is that being incorporated doesn’t have to limit your borrowing power. With the right documentation and the right guidance, your application can reflect the true strength of your business—not just what shows on your tax return. Programs like Sagen’s Alt-A are designed with entrepreneurs in mind and can open the door to better approvals, better rates, and more homebuying options.
If you're incorporated and not sure how much you might qualify for, now is a great time to find out. I specialize in working with business-for-self individuals and can help you structure your application so it gets the attention it deserves. Contact me for a personalized assessment or to get started on your pre-approval today.
Source: Absolute Mortgage Team