Mortgage renewal with a business under 2 years old
Under 2 years of self-employment, most A-lenders won't fully qualify you at renewal-switch. Stay with your existing lender — no re-qualification required at renewal — until you have 2 clean years of T1 Generals. Then switch to a fully-qualified A rate.
What makes this different
- Alt-A / stated-income programs will approve you, but at 0.25–0.75% above best A rates.
- Recent business losses on line 135 can push you out of A entirely — even if the business is thriving in cash terms.
How to approach your renewal
Straight renewal, don't switch. This is the single case where retention is almost always the best answer.
Once you cross the 2-year self-employment mark with clean NOAs, you unlock full A-lender pricing.
FAQ
Some lenders will use up to 12 months of prior T4 income if the transition was voluntary and you're in the same industry. Others won't. This is exactly where a broker earns their keep.
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Jay Klair, Mortgage Agent Level 2 (M09000869) — Real Mortgage Associates, FSRA #10464, part of the DLGC Group of Companies · 5675 Whittle Rd, Suite 100, Mississauga, ON L4Z 3P8