At Seven Lending, we understand that the modern BC workforce is changing. More people than ever are leaving traditional 9-to-5 jobs to become independent contractors. Whether you are in construction, IT consulting, or project management, you are the backbone of our province’s economy.
However, when you walk into a traditional big bank, they often treat your “self-employed” status as a risk rather than an achievement. Their biggest hurdle? The “Two-Year Rule.” Most banks demand two full years of tax returns (Notices of Assessment) before they will even look at your application.
If you haven’t hit that two-year mark yet, don’t worry. We specialize in helping contractors secure financing based on their current success and future potential—not just their past paperwork.
Can I get a mortgage as a contractor with less than 2 years of business history?
Yes. While traditional banks require a two-year track record, alternative and private mortgage lenders in BC can approve your mortgage based on “Stated Income” or home equity. If you have a strong down payment (usually 20% or more) and can prove industry experience, you can qualify for a mortgage even with only a few months of business history.
Why the “Big Banks” Say No (And Why We Say Yes)
Traditional lenders use a very rigid formula. They take your last two years of net income from your tax returns and average them. For a new contractor, the first year often involves start-up costs and lower taxable income due to write-offs. This makes your “average” look too low to afford a home in BC.
At Seven Lending, we look at the bigger picture:
- Industry Experience: If you were an employee in the same industry for years before going solo, we count that expertise.
- Current Contracts: We look at your active contracts and gross bank deposits to see what you are actually earning today.
- Property Value: We focus on the quality and location of the real estate you are buying.
The Power of No-Income Verification Mortgages
One of the most effective tools for a new contractor is a no-income verification mortgage in Canada.
Instead of asking for years of tax history, we look at your credit score and the equity in the property. This is a perfect solution for the “newly self-employed” who have the cash flow to pay a mortgage but haven’t filed enough tax returns to satisfy a traditional bank. If your credit isn’t perfect, we can still help through our bad credit mortgage programs.
Using Private Lending as a “Bridge” Strategy
Many of our contractor clients use private mortgage lenders in BC as a temporary solution.
Here is how the strategy works:
- Step 1: You secure a private mortgage now to buy your home, even if you only have 6 months of business history.
- Step 2: You spend the next 12 to 24 months building your official business history and keeping clean records.
- Step 3: Once you hit the two-year mark, your credit and tax history will be strong enough to “exit” the private loan and move into a lower-rate traditional mortgage.
This allows you to get into the BC housing market now instead of waiting two years and potentially being priced out. You can check our private mortgage rates to see how this fits your plan.
Specialized Options for BC Contractors
The location of your property matters. We have deep roots in British Columbia and understand the local markets. Whether you are looking for a private mortgage lender in Surrey, seeking private lending in Vancouver, or moving to the interior with a private lender in Kamloops, we can tailor a loan to the specific area.
How to Prepare Your Application
Even without two years of history, you can make your application stronger by providing:
- Proof of Industry Tenure: A resume showing you’ve worked in this field for a long time.
- Bank Statements: 6–12 months of business bank statements showing consistent revenue.
- Signed Contracts: Proof that your work is secured for the coming months.
- Equity/Down Payment: Having at least 20-25% down payment makes you a very strong candidate for alternative financing.
If you already own a home and are looking to expand your business or buy a second property, we can help you calculate how much you can borrow against your house using your existing equity.
Flexible Solutions for Every Situation
We know that every contractor’s situation is unique.
- Are you a house flipper? Look into our construction loans.
- Are you buying a rental to supplement your income? See our mortgage for rental property options.
- Are you a “B-Lender” candidate? Learn what a B-Lender is and how they offer a middle ground between banks and private money.
Stop Waiting and Start Owning
Don’t let a “No” from a bank branch manager stop your homeownership goals. At Seven Lending, we pride ourselves on being the lender that looks for reasons to say “Yes.” We value your hard work as a contractor and believe your mortgage should reflect your current success.
If you are ready to see what you qualify for, you can apply now or use our home purchase calculator to get started.