Markham Self-Employed Trucker Approved with B-Lender Stated-Income Exception

1. Executive Summary

A self-employed truck driver in Markham had incorporated only about one year earlier. Many lenders require at least two years of self-employment history, so the file was not suitable for an A-lender approval. However, before incorporating, the client had worked as a truck driver on payroll. We approached a B lender and requested an exception to the two-year self-employment rule. The rationale was that the client had not entered a new industry; he had moved from payroll trucking employment into incorporated trucking work. We supported the file with previous employer T4s and 12 months of business bank statements, and the lender reviewed the income under a stated-income approach.

2. Borrower Profile

The borrower was a self-employed truck driver in Markham, Ontario. He had started his corporation only around one year earlier. Before working through his own corporation, he had worked as a truck driver on payroll. Borrower identity, corporation name, income, credit score, lender name, and full employment history are not disclosed.

3. Property Profile

The mortgage was secured against a residential property. Exact address, property value, mortgage amount, rate, loan-to-value, and whether the transaction was a purchase or refinance are not disclosed.

4. The Challenge

The client had started his corporation only around one year earlier. Many lenders require a two-year self-employment history before using business-for-self or stated income. The file was not suitable for an A-lender approval because the self-employment history was too short. However, the client’s work history showed continuity: before incorporating, he had already worked as a truck driver on payroll in the same line of business.

5. Why Conventional Solutions Failed

A-lender options were not realistic because the client did not have the standard two-year self-employment history. Many institutional lenders want to see a longer history before relying on business-for-self income. The borrower had only about one year of incorporated business activity, and using that alone did not fit standard policy. The file required a lender willing to consider the borrower’s prior payroll trucking experience as relevant industry continuity.

6. Our Analysis

Our analysis focused on continuity of occupation. The borrower was not newly entering trucking; he had previously worked in the same industry as a payroll employee and then incorporated. That distinction mattered. We supported the file with T4s from the previous trucking employer and 12 months of business bank statements from the corporation. The goal was to show that the borrower’s current income was a continuation of the same work, not a speculative new business with no track record.

7. Financing Structure

The file was structured through a B lender using a stated-income approach. The income review was supported by 12 months of business bank statements and previous employer T4s. The lender considered an exception to the usual two-year self-employment requirement. Public details do not disclose the lender name, mortgage amount, rate, fees, property value, down payment or equity, or borrower identity.

8. Why the Solution Worked

The solution worked because the exception request had a clear rationale. The client’s self-employment was new, but his industry experience was not. His prior T4 employment as a truck driver helped show that the incorporated business was a continuation of the same line of work. The business bank statements then helped support current cash flow. The underwriting principle is that short self-employment history may be more acceptable when the borrower has documented prior experience in the same occupation.

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