Can I get a mortgage when I’m self employed?

Every lender has their own criteria of choosing who qualifies for a mortgage; most of them will look at your credit score, income, and type of job, down payments and loan history among other things. You are less likely going to get a good mortgage rate of you are self employed or you do not have a job. This is because for unemployed people, making the mortgage payments is going to be impossible. Without a constant job, lenders cannot predict your capability to complete the monthly payments and make them on time.

Here are the qualifications you need to meet when you are self employed

The first thing mortgage brokers will check are the profits your company has been making for the past 2 or three years. They can use this to determine the amount of money you qualify for. The only time you qualify for the mortgage is if you have legal registration documents for your business

If your company or business has not been running for more than 5 years, you are less likely going to qualify for a mortgage. Brokers would prefer a business that has been around longer so that they can use its documents to predict the profit margins.  Your credit report is also important to brokers. A good credit score and history is more likely going to land you a higher mortgage rate and low interest compared to a bad one.

There are a few lenders willing to approve your mortgage application. As long as you have been in business for a long time, it will be easy to prove you have a stable income to the mortgage broker. Let us look at how different types of self employment will affect your mortgage

If you own a company

This means that you have several people working for you on different parts of the firm. When applying for a mortgage, lenders will only look at your income minus the company profits. If the mortgage is commercial, they will consider all the disposable profits you get when all your payments are covered

Independent business contractor

Working alone will make it harder for you to get your mortgage approved. If the business is new, there is an extremely low chance you are going to get the mortgage. Lenders check the income of at least three years to see how much you make on average. A good profit margin increases the chances for a mortgage approval.


This is a business that involves mainly two individuals. When applying for a personal mortgage, the lender will check your share of the income alone. if the mortgage is commercial , the will check all the incomes combined.

This is how you can prove your income to the mortgage brokers

To prove that you receive a certain amount of money in income, you should provide the mortgage broker with legal documents that state all your income in the last couple of years. The documents should include records of investments, employee payments= and profits. Before you present them to the lender, ensure they are legal and well written. Note that a retained profit is in no way considered as a form of personal income.