Chad Watts of TMG The Mortgage Group Draws on 15 Years of Experience to Help Self-Employed Canadians Navigate Mortgage Qualification
VANCOUVER, BC, CANADA, July 16, 2026 /EINPresswire.com/ — For self-employed Canadians, obtaining a mortgage can often seem like navigating a completely different system than everyone else uses. Chad Watts, a mortgage broker operating out of Vancouver who has dedicated the last 15 years to assisting local home purchasers in arranging financing, confirms that this perception is largely accurate, and he is offering insights business owners need before applying in 2026.
Conventional lenders generally examine net income averaged across two years of tax filings, not gross earnings. For self-employed individuals who maximize allowable business write-offs to lower their tax obligations, this identical tactic can simultaneously decrease the income a bank will acknowledge for mortgage approval. This is one of the primary reasons Chad Watts observes self-employed applicants either being turned down or receiving approval for far less than they had anticipated.
For owners of incorporated businesses, the situation can differ. Many entrepreneurs retain profits within their company rather than distributing a substantial salary or dividend to themselves each year. While these retained earnings frequently indicate a robust and lucrative enterprise, not every lending institution will factor them in when determining qualifying income. Certain lenders have programs that can incorporate retained earnings or corporate cash flow when backed by solid financial documentation, whereas others depend mainly on the salary or dividends shown on individual tax returns.
Multiple methods exist to overcome these obstacles. Programs like CMHC Self-Employed allow qualifying income to be increased by as much as 15 percent or calculated using eligible add-backs, which more accurately represents a business owner’s genuine earning potential. For incorporated business proprietors, some lenders may also take into account retained earnings or corporate cash flow when supported by strong financial statements. Furthermore, several alternative and B lenders provide programs that qualify borrowers based on gross business deposits and business cash flow, instead of depending exclusively on taxable personal income. Depending on the lender and the borrower’s situation, these programs can deliver substantially greater borrowing capacity than conventional income qualification approaches. Lenders generally require two years of Notices of Assessment, T1 General tax returns, business financial statements, and supporting bank records where applicable.
Chad Watts, a lifelong Vancouver resident who has developed his career assisting homebuyers throughout Metro Vancouver, notes that the primary advantage self-employed borrowers possess is choice. Through his connection with TMG The Mortgage Group Canada Inc., he has access to more than 50 Canadian lenders, including banks, credit unions, monoline lenders, and alternative lenders, each of which assesses self-employed income in a distinct way.
“Every lender looks at self-employed income differently,” Chad Watts said. “Some focus primarily on taxable income, while others can consider retained earnings, corporate cash flow, or gross business deposits. That’s why choosing the right lender is often just as important as having the right income.”
Chad Watts also advises self-employed buyers to begin planning well before they start searching for a home.
“A file that gets declined at one bank can often get approved somewhere else once you understand which lender best fits the way that business reports its income,” Chad Watts said. “Self-employed Canadians build incredible businesses, and they shouldn’t be penalized for running them well. My job is to find the lender and the strategy that reflects what their business truly earns.”
Chad Watts recommends that self-employed buyers start preparing several months prior to submitting a mortgage application. This involves keeping two years of Notices of Assessment and T1 General tax returns current, discussing compensation strategies with their accountant before filing taxes, and gathering business financial statements and banking records early. Purchasers with fewer than two years of self-employment history may still have financing options accessible, particularly if they possess strong credit, significant cash reserves, or prior experience in the same field.
Chad Watts works with self-employed professionals, incorporated business owners, first-time homebuyers, investors, and homeowners looking to refinance or explore reverse mortgages throughout Vancouver, Burnaby, Richmond, North Vancouver, West Vancouver, New Westminster, Coquitlam, Port Moody, Surrey, Langley, Delta, and the Fraser Valley.
Homebuyers interested in learning more or obtaining a mortgage pre-qualification can visit wattsmortgages.ca to schedule a consultation.
About Chad Watts – Mortgage Broker at TMG
Chad Watts is a BCFSA-licensed Sub-Mortgage Broker (License #142612) with TMG The Mortgage Group Canada Inc., serving homebuyers and homeowners across Metro Vancouver. With 15 years of industry experience and access to more than 50 lenders across Canada, Watts specializes in self-employed and business-for-self mortgages, along with reverse mortgages, private lending, refinancing, and first-time buyer programs. He holds a 5.0-star rating across more than 60 client reviews. All mortgage products are subject to lender approval and standard qualification requirements. Learn more at wattsmortgages.ca.
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Chad Watts Mortgage Broker, TMG The Mortgage Group Canada Inc.
Phone: 778-773-6631
Email: chad@wattsmortgages.ca
Website: wattsmortgages.ca
Chad Watts
Chad Watts – Mortgage Broker at TMG
+1 7787736631
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