Stated Income Mortgage

The older industry name for what's now usually called BFS (Business For Self). Mortgage program category where the lender accepts a stated income figure from the borrower, usually backed by 6 to 12 months of business bank statements, rather than full T1-based income tax verification.

Designed for self-employed borrowers whose tax returns understate actual cash flow. Most commonly available through CMHC, Sagen, or Canada Guaranty insurance programs, typically with a rate premium of 0.10 to 0.50% or an insurance premium of 0.5 to 1.5%. The newer industry term is BFS, but “stated income” is still commonly searched and the program is the same thing.