Business-for-Self Pre-Qualification
Compliance & disclaimer
This tool provides illustrative estimates only and is not a commitment to lend. Qualification depends on full underwriting, credit review, property assessment, current lender/insurer policies, and applicable laws/regulations in Alberta. Programs and caps (GDS/TDS/LTV) are subject to change without notice.
Ready to turn your estimate into a plan?
Contact Alberta Mortgage Solution for a free review of your numbers and documents. We’ll confirm eligibility and outline next steps—fast.
BFS Mortgage Calculator — FAQ (Alberta)
Welcome! This page answers the most common questions about the Alberta Mortgage Solution Business-for-Self (BFS) Pre-Qualification Calculator. It helps self-employed Albertans estimate borrowing power under two pathways:
Insured (CMHC) — traditional proof of income using tax documents (T1/NOA), standard insurer ratios and rules.
Alt-A / B (Bank-Statement Programs) — lender programs that assess business deposits and margins instead of traditional T1 income.
The calculator also supports optional co-borrower income, GDS/TDS caps, stress-testing, and a one-click PDF summary for your records. Results are estimates only—a full application and document review are required for approval.
What does this calculator do for self-employed borrowers?
It estimates your maximum actionable mortgage amount and estimated payments based on your income pathway (Insured vs Alt-A/B), property scenario (purchase or refinance), PITH/expenses, GDS/TDS caps, amortization, and stress test. It’s designed for quick pre-qualification, not a firm approval.
What are GDS and TDS, and why do they matter?
GDS (Gross Debt Service) = (Mortgage payment @ stress + property taxes + heat + condo fees) ÷ monthly income.
TDS (Total Debt Service) = (GDS components + other monthly debts) ÷ monthly income.
Your max mortgage is constrained so you do not exceed the program’s GDS/TDS caps.
How do I use the Alt-A/B bank-statement option correctly?
Enter the total business deposits over 12 months, subtract exclusions (non-business transfers, refunds, loans), pick a margin% (typ. 15–30% depending on industry/lender), and set your ownership%. The calculator converts deposits → income using:(Deposits − Exclusions) × Margin% × Ownership%
Can I include a non-BFS co-borrower?
Yes. Check “Include non-BFS co-borrower income” and enter their annual income. The calculator adds it to qualifying income. (Their liabilities should still be reflected in the debts field if applicable.)
Are the results the same as a lender decision?
No. This is a pre-qualification estimate. Lenders and insurers review credit, documents, property details, and policy overlays. The final approval can differ.
How is the stress rate calculated?
Insured: The calculator uses max(5.25%, contract rate + 2%) to mirror current insured stress-test logic.
Alt-A/B: It assumes contract rate + 2% as a typical lender policy (exact rules vary by lender and program).
What’s the difference between Insured (CMHC) and Alt-A/B in the calculator?
Insured (CMHC) uses your T1/NOA income (with an optional gross-up and add-backs where permitted), 25-year max amortization, and typical insurer caps (e.g., GDS 39% / TDS 44%, LTV up to 95% for eligible purchases).
Alt-A/B uses a bank-statement approach (12-month eligible business deposits minus exclusions, multiplied by a net margin %, then prorated by ownership %). Caps are often more flexible (e.g., GDS/TDS up to ~55%, LTV up to ~80%), and amortization may be longer where allowed by the lender.
I’m new to self-employment. Can I qualify?
It’s possible, but more challenging. Many insured programs prefer 2 years of self-employed history. Some Alt-A/B lenders can be more flexible depending on deposits, industry stability, and credit profile. Contact us for a customized approach
What’s my next step after using the calculator?
Save your PDF and book a call with an Alberta Mortgage Solution broker. We’ll review documents, confirm the right pathway (Insured vs Alt-A/B), and provide a personalized, lender-ready game plan.
Will this work for rental properties?
The current calculator is optimized for owner-occupied scenarios. Rental offset/add-back policies are lender-specific; request a broker assessment for rental deals.
How accurate is the payment shown?
Payments at the stress rate are used for qualifying; your contract rate payment is also displayed for budgeting. Real payments depend on final rate, term, product, compounding, and closing date.