Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
26% - Moderately

Self Employed Person

Synonyms:business owner, free agent, freelance, subcontractor, your own boss
Acronyms &
Filed Under: financial-banking, mortgages, taxation
Tags: business, employment

Definition of self employed person (SEP)

self employed person (SEP)
1. An individual who owns and operates a trade or business rather than working as an employee for company. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside of your regular employee hours. To qualify for many business tax exclusions and deductions, the business must make a profit in three of five years. In most cases, to qualify you must take and average of the last two - three years tax assessments.

Related Terms and Acronyms:

  • business interest expense   Interest acquired in business operations can be deducted as a business expense.
  • commercial loan   A loan taken out by a business.
  • commercial mortgage   A mortgage for commercial property.
  • lease (lse)   A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
  • loan   Letting another party use something of value temporarily.
  • low-documentation loan   A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.
  • meals and entertainment (M&E)   Deductible expenses in your business such as the cost of taking a client to a restaurant (meals) or a sporting event (entertainment). However, these expenses are only partially deductible (50 % in Canada).
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • proprietor   The owner of a business or property.
  • sole proprietorship   A business owned by an individual where no legal distinction is made between the business and the owner.

More Related Terms and Acronyms

Search the Glossary

Try Our Mortgage Calculator Now
Did you know that by increasing your down payment from 5% to 20% on a $500,000 home you can save yourself almost $11,000 in interest and over $13,000 in CMHC mortgage insurance premiums? Try our mortgage calculator and find out how a simple change in your down payment amount can save you thousands of dollars.
Calculator Buttons
Current Canadian Rates
For the best rate information in Canada, make use of our up to date interest rate comparison chart. Our brokers are not even remotely afraid of advertising our competitor's rates because we know how we stack up.
Best Current Rate Information
Mortgage Brokers
With over a decade of online familiarity, it's fair to say that our mortgage brokers hold the experience needed to find you the best mortgage rates and provide you with top-notch service.
Mortgage Brokers Hold Experience