Illustration by Diana Bolton
When Calgary-based Emily, 30, and her partner set out to buy their first home in Edmonton, their biggest challenge was securing a good mortgage.
Emily is self-employed and runs her own business. In 2025, they bought their home, and she paid herself $110,000 – less than what her corporation earned. Her partner, Lisa, 28, worked as a receptionist in Calgary, but when the couple decided to move to Edmonton, where Emily’s family and support system are based, Lisa quit.
Like many self-employed Canadians, Emily needed two full years of stable, documented income to qualify for a competitive mortgage rate. However, because she had been paying herself a low salary and reinvesting her earnings into helping her business grow, the couple was approved for a mortgage around $450,000, far below the price range they had determined was financially comfortable.
That’s when the couple turned to an alternative lender. Although most Canadians get mortgages through one of the big banks, smaller alternative lenders, including credit unions and non-bank lenders, have steadily gained market share.
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Their broker recommended an Alt-A mortgage, which is available through specialized alternative lenders and designed for self-employed people who cannot provide traditional income verification, but have a history of responsible credit and financial use.
Instead of solely relying on Emily’s personal salary, the lender also assessed income from her corporation. The alternative lender’s mortgage still required strong credit and at least two years of business history, but it allowed the couple to qualify for a much larger loan.
“My corporation’s income is way greater than my personal one. That allowed us to actually qualify up to $800,000,” she said, even though they ultimately borrowed far less.
In July, 2025, the couple bought a four-bedroom, two-bathroom bungalow in Edmonton for $565,020. The 1,024-square-foot home sits on a large corner lot and has a double detached garage. Major items including the roof, furnace and appliances, were recently updated.
Despite having close to 20 per cent saved for a down payment, they chose to put down $90,000, or about 16 per cent. With their Alt-A mortgage, mortgage insurance was required regardless of down payment size, eliminating the usual incentive to reach 20 per cent. A smaller down payment freed up cash for closing costs and early maintenance needs.
Saving for the down payment took about a year. Running her own business gave Emily the flexibility to increase her income by taking on more work, while her partner earned extra money through a side hustle, refinishing furniture.
“I know that’s not the case for most people working a traditional nine-to-five,” Emily said.
The couple also received an unexpected $25,000 gift from Emily’s grandparents to help with the cost of buying a home.
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Throughout the process, Emily was deliberate about where they saved. Instead of tapping into their retirement funds, they chose to put money into a first home savings account. While the RRSP Home Buyers’ Plan allows tax-free withdrawals, the funds must be repaid over time or taxed as income. FHSA withdrawals, by contrast, are tax-free and don’t require repayment.
Starting in late 2023, they contributed roughly $32,000 to their FHSAs. Emily invested her savings in ETFs, while her partner kept the funds in cash to avoid vulnerability to a market crash. A few months before buying their home, Emily sold her investments.
“I pulled this money out of investments because I didn’t want there to be a dip in the market right when we’re trying to buy,” she said.
They put additional savings into high-interest savings accounts.
Although they did not set out to borrow from an alternative lender, Emily and Lisa made peace with their choice. “[They’ve] been around for a long time, so I felt comfortable going with them,” Emily said.
They secured a five-year fixed-rate mortgage at 4.19 per cent, amortized over 30 years. Notably, they chose a mortgage option that allowed them to make early bulk payments through flexible repayment avenues such as increased payments, doubled payments and annual lump-sum contributions.
Closing costs included legal fees, inspections and moving expenses, which totalled more than $8,000. Within the first month, the couple spent roughly $7,457 on locks, security cameras, lighting, tools, paint, furniture and minor maintenance.
For Emily and her partner, this wasn’t a starter home but a place to live in long-term without worrying about being forced to move, something they had experienced as renters, where the possibility of a landlord selling or moving back in created uncertainty.
“We bought this home for emotional reasons,” she said. “We wanted stability.”
Costs
- Purchase price: $565,020
- Down payment: $90,000 (16 per cent)
Closing costs:
- Home inspections: $1,058
- Legal fees: $3,160
- Moving (supplies, dump runs, truck, movers, gas, professional cleaning): $2,471
- Takeout for two weeks during move: $731
Monthly costs:
- Mortgage: Approximately $2,400
- Home insurance: $842 three times a year
- Utilities (gas, electricity, water and waste management): Approximately $350
Repairs:
- Contractor work, locks, security cameras, floodlights, yard tools, paint, furniture and maintenance: $7,457
Emily’s advice: “Add up every single cost possible, and in my opinion, you’re not ready to buy a home until you have that amount.”
Some details may be changed to protect the privacy of the people profiled. Are you a first-time homeowner who would like to share their story? Send us an e-mail.
