Stated-Income Mortgage Programs: Pros and Cons for Oakville’s Self-Employed
August 18, 2025 | Posted by: Signature Mortgage Group Inc. - Trusted Oakville and GTA Mortgage Brokers
Did You Know?
Across Oakville and Ontario, many entrepreneurs are declined by banks even though their businesses are healthy. Tax deductions and write offs reduce reported income on paper, which can make qualifying with traditional rules difficult. A stated income mortgage gives another path. You declare your income and support it with items like bank statements or an accountant letter, so you are evaluated on how your business actually operates, not only on a T4 that you do not have.
This option can open doors for self employed buyers and owners who want to refinance. It also comes with trade offs. Below is a clear look at the upsides and the drawbacks so you can decide with confidence.
What Is a Stated Income Mortgage?
A stated income mortgage is built for people who do not fit a salaried box, including small business owners, contractors, freelancers, and commission earners. Instead of submitting several years of tax returns, you state your income and back it up with alternative proof such as recent business bank statements, GST or HST filings, signed contracts, or an accountant letter.
In Oakville, these products are most often offered by alternative or private lenders. They help borrowers who run strong businesses but do not meet big bank guidelines. Learn more about how our team supports self employed applicants here: Oakville Mortgages for Self Employed.
Benefits of a Stated Income Mortgage
- More realistic for business owners: Deductions lower taxable income. Stated income acknowledges this and looks at cash flow and business strength.
- Opens doors to approval: Many Oakville clients have purchased or refinanced using a stated income approach after a bank said no.
- Faster decisions: Alternative lenders can move quickly compared with large institutions.
- Path to future savings: Strong payment history can position you to refinance into a conventional product later. See options on our Mortgage Refinancing page.
Drawbacks to Keep in Mind
- Rates are usually higher: Lenders price for greater perceived risk.
- Down payment may be larger: Many programs look for 20 to 35 percent down, sometimes more for rentals.
- There can be lender or broker fees: You should see all costs upfront before you proceed.
- Fewer lender options: Not every lender offers this setup, so choice can be limited compared with mainstream products.
Local Stats That Matter
Canada has roughly three million self employed people, or about fifteen percent of the workforce. Halton Region, which includes Oakville, has a strong base of consultants, construction firms, real estate professionals, and service businesses. With more people earning non salaried income, the need for flexible underwriting has grown, and alternative lending now represents a meaningful share of new originations in Ontario.
What this means for you is simple. If your taxes show modest income because you reinvest in your business, you still have options. Our team reviews your full picture, then matches you with lenders who consider business health, not just line items on a return.
Case Study: Maria, an Oakville Consultant
Maria is a marketing consultant based in Oakville. Her company brought in over six figures last year, but after deductions, her taxable income looked far lower. Her bank declined a renewal request.
Working with Signature Mortgage Group, Maria used a stated income program. She provided six months of business bank statements and an accountant letter. An alternative lender approved a new term at a slightly higher rate. The trade off was worth it because it kept her payments stable and gave time to plan a later move back to a conventional product.
Who Benefits Most?
- Self employed contractors, consultants, health professionals, and creatives
- Owners of small retail, hospitality, or service businesses
- Freelancers and gig workers
- Commission earners such as sales agents and realtors
If you want to compare this route against other solutions in Oakville, review our pages on Mortgage Renewals, Private and Alternative Mortgages, and Home Equity Loans.
How a Broker Adds Value
Finding the right lender on your own can feel like guesswork. Our role is to evaluate your complete profile and present you with clear choices. We compare lenders active in Oakville, confirm the real cost including fees and conditions, and prepare a plan to move you toward lower cost financing over time. Have questions today? Contact our Oakville team.
Top 10 FAQs About Stated Income Mortgages in Oakville
1. Can I qualify with bruised credit?
Possibly, though you will likely see a higher rate and may need a larger down payment.
2. What down payment is typical?
Most stated income options look for 20 to 35 percent down, subject to lender policy and property type.
3. Do I still need paperwork?
Yes. Bank statements, HST filings, signed contracts, and an accountant letter are common support items.
4. Can I use this for refinancing?
Yes. Many Oakville owners use stated income for renewals or to consolidate debts. See our Refinancing page.
5. Will my rate ever match bank rates?
It can over time. Good payment history and stronger financials can help you move back to a conventional product.
6. Is this legal in Ontario?
Yes. These products are offered by regulated lenders who follow provincial and federal rules.
7. Do I need to live in Oakville?
No. We serve clients across the GTA and Ontario from our Oakville office.
8. How fast can approval happen?
Some lenders issue commitments within days once documents are in.
9. Can I buy an investment property?
Yes, though down payment and rate requirements are usually higher than a primary residence.
10. What if a lender thinks my stated figure is too high?
The file can be declined or more proof may be requested. Be accurate and work closely with your broker.
Tools and Next Steps
Run quick numbers with our Mortgage Calculators, read common questions on our FAQs, and look up key terms in our Mortgage Glossary. When you are ready, start here: Self Employed Mortgages in Oakville.
