Why Self-Employed Individuals Should Avoid the Bank for Mortgages

Josh Perez • September 12, 2023

If you're self-employed and in the market for a mortgage, it may seem like a natural step to head straight to your bank. After all, it's a familiar place where you handle your finances, right? However, this may not be the best approach for self-employed individuals, and there are two significant reasons why: people and products.

One of the biggest benefits of being a business owner is not sucking out every dollar personally and paying at the highest marginal tax levels, but keeping it within the corporate structure, pay less tax, and use those extra dollars to grow the business sustainably.

If you're self-employed and in the market for a mortgage, it may seem like a natural step to head straight to your bank. After all, it's a familiar place where you handle your finances, right? However, this may not be the best approach for self-employed individuals, and there are two significant reasons why: people and products.


1. The People Problem:

Over the years, there has been a troubling trend in banks - a growing number of employees with diminishing experience in financial planning. This can be a real issue for self-employed individuals seeking a mortgage. When you walk into a bank, you want to be heard and understood, especially when it comes to qualifying for a mortgage.


Unfortunately, the lack of expertise in many bank employees often means that not enough questions are asked. These questions are crucial for understanding how your business operates and why it operates the way it does. Without this understanding, it's challenging to secure the right mortgage tailored to your unique financial situation.


2. The Product Predicament:

Another issue with going directly to the bank for a mortgage is the products they typically offer. Most bank products rely heavily on what a business owner takes out personally from their business as a basis for qualification. In many cases, this approach isn't the most prudent for self-employed individuals.

Think about it – as a business owner, you might want to reinvest a significant portion of your profits back into your business to foster growth and increased profitability. Bank products, however, often penalize this approach because they focus on personal income rather than the financial health of your business as a whole.

3. The Mortgage Broker Solution:

So, what's the alternative for self-employed individuals looking for a mortgage that suits their unique financial situation and goals? Consider working with a mortgage broker.

Mortgage brokers collaborate with a wide range of lenders who take a more common-sense approach to self-employed borrowers. They understand that assessing financial health should encompass the entire business, not just personal income. This means they are more likely to do a deep dive into your overall business financials, working with you to find a mortgage that aligns with your needs and aspirations.

One of the most significant advantages of being a business owner is the ability to keep profits within your corporate structure. This strategy allows you to pay less tax and use those extra dollars to grow your business sustainably. Bank products often don't cater to this essential aspect of business ownership.


In conclusion, if you're self-employed and looking for a mortgage, it's crucial to consider alternatives to the traditional bank route. Mortgage brokers offer expertise and a broader range of mortgage products that better accommodate the needs and financial strategies of self-employed individuals. Don't let a lack of understanding or an ill-fitting product hinder your path to homeownership or investment. Explore your options and find a mortgage solution that aligns with your unique financial journey.


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Get Unbiased Advice: Work with an Independent Mortgage Pro

By Josh Perez • December 24, 2025
Why Work With an Independent Mortgage Professional? If you’re in the market for a mortgage, here’s the most important thing to know: Working with an independent mortgage professional can save you money and provide better options than dealing directly with a single bank. If that’s all you read—great! But if you’d like to understand why that statement is true, keep reading. The Best Mortgage Isn’t Just About the Lowest Rate It’s easy to fall for slick marketing that promotes ultra-low mortgage rates. But the lowest rate doesn’t always mean the lowest cost . The best mortgage is the one that costs you the least amount of money over time —not just the one with the flashiest headline rate. Things like: Prepayment penalties Portability Flexibility to refinance Amortization structure Fixed vs. variable terms …can all affect the true cost of your mortgage. An independent mortgage professional looks beyond the rate. They’ll help you find a product that fits your unique financial situation , long-term goals, and lifestyle—so you’re not hit with expensive surprises down the road. Save Time (and Your Sanity) Applying for a mortgage can be complicated. Every lender has different rules, documents, and policies—and trying to navigate them all on your own can be time-consuming and frustrating. When you work with an independent mortgage professional: You fill out one application They shop that application across multiple lenders You get expert advice tailored to your needs This means less paperwork , less stress , and more confidence in your options. Get Unbiased Advice That Puts You First Bank specialists work for the bank. Their job is to sell you that bank’s mortgage products—whether or not it’s the best deal for you. Independent mortgage professionals work for you. They’re provincially licensed, and their job is to help you: Compare multiple lenders Understand the fine print Make informed, long-term financial decisions And the best part? Their services are typically free to you . Mortgage professionals are paid a standardized fee by the lender when a mortgage is placed—so you get expert guidance without any out-of-pocket cost. Access More Mortgage Options When you go to your bank, you’re limited to that bank’s mortgage products. When you go to an independent mortgage professional, you get access to: Major banks Credit unions Monoline lenders (who only offer mortgages) Alternative and private lenders (if needed) That’s far more choice , and a much better chance of finding a mortgage that truly fits your needs and goals. The Bottom Line If you want to: Save money over the life of your mortgage Save time by avoiding unnecessary back-and-forth Access more lenders and products Get honest, client-first advice …then working with an independent mortgage professional is one of the smartest decisions you can make. Let’s Make a Plan That Works for You If you're ready to talk about mortgage financing—or just want to explore your options—I'm here to help. Let's connect and put together a strategy that makes sense for your goals and your future. Reach out anytime. I’d be happy to help.

Why High Income Doesn’t Automatically Mean a Bigger Mortgage

By Josh Perez • December 18, 2025
Most people assume a bigger paycheck leads to a bigger mortgage approval. But here’s the truth that surprises almost everyone: “It’s not about how much you earn. It’s about how much of your income is already spoken for.” — Josh Perez I’ve sat across from clients earning six figures who qualified for less than someone making half as much. The problem wasn’t their income. It was their monthly obligations . Lenders Don’t Just Look at Income — They Look at What’s Left Over You can make $200,000 a year, but if $80,000 of it is tied up in payments, lenders see very little room for a mortgage. Here’s what typically eats up that space: Big car loans Multiple credit cards Buy-now-pay-later plans Personal loans Lines of credit Old debts that still report monthly payments These commitments matter because lenders are focused on one main calculation: Debt-to-Income Ratio (DTI) This tells lenders how much of your income is already locked into payments — and how much is available for a mortgage. A high DTI = lower mortgage approval A low DTI = stronger approval and better options It’s that simple. Want to Qualify for More? Do This First Most people think they need to increase their income. The truth? Reducing debt often has a bigger impact — and works faster. 1. Pay down or eliminate high monthly payments Even paying off a single loan can shift your approval dramatically. 2. Avoid taking on new credit before applying Every new payment reduces your borrowing room. 3. Keep your spending stable for 90 days Lenders review recent bank history. Stability helps. 4. Work with a mortgage broker, not just one bank This is one of the biggest ways people leave money on the table. Every lender calculates affordability differently. Some are far more flexible with DTI. If you only go to your bank, you’re only getting one version of your potential approval. Let’s Make Your Approval Work for You If you want to qualify for more, reduce debt strategically, or understand where you stand right now, I can help you build the right plan. Let’s give you access to more options — not just one.