Self-Employed Fisher Family Buys $2.5M BC Home

Complex self-employed income and subject-free offers

Mark and Emily are a married couple who run a commercial fishing business on the BC coast. Both are full‑time, self‑employed through their corporation, and they also hold several other companies and a small rental property in northern BC. They wanted to buy a high‑value home with a suite in a mid‑sized BC city, but kept losing out in a very fast market.

The first challenge was income. Their earnings came from fishing income reported on T1 tax returns and from corporate net income after tax. One holding company had past negative income, and another company was newly incorporated with no financials yet. A lender would have to understand how these pieces fit together and accept a blended approach to income.

The second challenge was the size of purchase. Early reviews, with conservative assumptions, suggested a maximum purchase price of around $1.45M–$2.0M at about 80% loan‑to‑value. The clients, however, were shopping in the $2.4M–$2.55M range. To reach that level, we needed a lender willing to use extended debt service ratios and to recognize rental income from both their existing rental and the new suite.

The third challenge was their credit profile and debts. Mark had an old small‑claims judgment showing on his credit bureau that needed to be confirmed as paid in full. Together they carried several credit card balances that pulled up their total debt service. At the same time, they were sitting on large cash balances in various corporate and personal accounts that would make up a sizable down payment.

The final challenge was timing and offer strategy. The couple had already missed on a few homes and decided to write subject‑free offers to compete. That meant we had to build a strong self‑employed mortgage file in advance, pre‑test it with likely lenders, and move very quickly on appraisals and documents whenever they wanted to bid on a property.

Building a lender-ready self-employed file

We started by organizing all of Mark and Emily’s financial information into a clear story that a lender could follow. This included multiple years of T1 General tax returns, corporate financial statements for their fishing company and real estate companies, and bank statements confirming cash balances.

Clarifying income
For Mark, we used a two‑year average of fishing income from his T1s, then added a portion of corporate net income after tax as other income, following lender guidelines. For Emily, we added her self‑employed fishing income based on a two‑year average, and documented a small amount of government support she received at the height of the pandemic. Where a company was too new to have full financials, we were transparent with the lender and focused on the established entities.

Documenting down payment and assets
The couple had substantial cash in personal savings and in several corporate accounts, plus funds coming from a previous real estate deal and from a numbered company. We assembled 90‑day bank histories and supporting documents to confirm both the size and the source of their down payment. This was especially important because some of the funds were coming from a business account.

Using rental income effectively
The target home included a suite, and the clients already owned a rental property in northern BC. We requested that the appraiser comment on market rents for the new suite and used reasonable rent figures in our early reviews. For the existing rental, we backed up the stated rent with T1 tax schedules, a lease, and several months of bank statements showing rent deposits. This allowed the lender to offset housing costs with rental income rather than counting the full mortgage against them.

Cleaning up the credit picture
We helped the clients obtain proof that the old judgment on Mark’s credit bureau had been paid in full. We also built a plan into the mortgage to pay out several personal credit card balances at closing. This not only strengthened their total debt service ratios but also simplified their monthly cash flow.

Choosing the right lender and structure
We ran detailed scenarios with both a major Canadian bank and a leading BC credit union, testing various purchase prices, rental income treatments, and extended debt service ratios. In the end, we moved forward with a major Canadian bank that could offer a STEP‑style product, competitive variable rates, and a 30‑year amortization, all while staying within roughly 79–80% loan‑to‑value.

Managing timing and appraisals
Because the couple wanted to write subject‑free offers, we ordered appraisals early and requested rush timelines. When they focused on the final home at $2,525,000, we quickly ordered an appraisal, which came back at $2.5M. With the appraisal in hand and the income story fully documented, the lender was comfortable approving the deal without financing subjects on the offer.

From stalled house hunt to successful $2.5M purchase

With the self‑employed mortgage file fully prepared, Mark and Emily were able to act fast when their ideal home came to market in a competitive BC suburb. They wrote a subject‑free offer at $2,525,000 and had it accepted. The appraisal confirmed a value of $2,500,000, supporting the purchase price and satisfying the lender.

Their approval with a major Canadian bank allowed them to avoid higher‑cost alternative lending. The final mortgage amount fit within the bank’s extended debt service guidelines once rental income from the new suite and their existing northern BC rental was considered. A 30‑year amortization and a competitive variable rate helped keep their payments more manageable under the federal stress test.

On the credit side, confirming that the old judgment was settled and paying out key credit card balances at closing gave the lender additional comfort and left the couple with a cleaner balance sheet going forward. All legal documents were sent to the notary on time, and completion on April 26, 2022 went smoothly.

After closing, Mark and Emily planned to finish the suite and begin collecting rental income, further improving their monthly cash flow and long‑term wealth position. They successfully moved from early estimates that capped them near $2.0M to owning a home above $2.5M, without sacrificing lender quality or over‑stretching their budget.

This case shows that even with complex, self‑employed income, multiple corporations, and past credit issues, it is possible to secure a large, prime mortgage in BC. The key is early planning, full documentation, and working with a lender who understands self‑employed borrowers and rental‑based strategies.