Personal
Two years of T1 Generals with all schedules, two years of Notices of Assessment, and confirmation that nothing is owing to CRA. That last one derails more deals than anything else on this page.
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Self-Employed & Business-for-Self Mortgages
You write off expenses because your accountant told you to. Then a bank uses that same return to decide you can’t afford a house. There are lenders who read it differently.
The Core Problem
Your tax return is designed to minimise income. Your mortgage application isn’t.
If you own a business, contract, or earn most of your money on commission, you already know the tension. Good tax planning lowers your declared income. Mortgage qualification is driven almost entirely by declared income. The two goals pull in opposite directions, and most bank branches only know how to read the second one.
A branch adviser typically averages your last two years of line 15000, applies the debt-service ratios, and gives you a number. That number is frequently a fraction of what you genuinely earn — and it is not the only way the file can be read.
The useful question is not “how much did you declare?” but “which lender’s policy matches the way your income is actually structured?” That is a materially different conversation, and it is where most of the value on this file sits.
Four Routes
How a self-employed file actually gets approved
In rough order of cost. Most people qualify under one of the first two and never need to look further.
- 1
Declared income at an A lender
Two years of T1 Generals and Notices of Assessment, averaged. If your declared income supports the mortgage, you get standard rates and standard terms — identical to a salaried borrower. Always the first thing to test, and more files clear this bar than owners expect.
- 2
Declared income with add-backs
Several lenders will add back items that reduce taxable income without reducing actual cash flow — capital cost allowance, business-use-of-home, one-time or non-recurring expenses, and in some cases retained earnings held inside your corporation. This alone frequently moves a file from declined to approved at a bank rate.
- 3
Insured business-for-self programs
Canada’s default insurers each run a self-employed program for borrowers who can demonstrate a viable business but cannot fully document income conventionally. These generally require at least two years in business and carry a premium surcharge, but they preserve access to competitive rates.
- 4
Alternative and bank-statement lending
B lenders and credit unions that will underwrite from six to twelve months of business bank deposits rather than tax returns. Higher rate, a lender fee, and usually a larger down payment — but they close. I treat these as a bridge with a defined exit back to an A lender, not as a destination.
What To Have Ready
The document set that makes this go quickly
Corporate
Two years of accountant-prepared financial statements, your Articles of Incorporation or business registration, and a business licence or HST number. If you draw dividends, the T5s that go with them.
Supporting
Six to twelve months of business bank statements, current contracts or invoices showing forward work, and a short letter from your accountant explaining anything unusual in the returns. That letter carries real weight.
Two consistent years matters more than two large ones. A lender would rather see $95,000 twice than $40,000 followed by $150,000.
FAQ
Self-employed mortgage questions
How long do I need to be self-employed to get a mortgage?
Most programs want two years of business history, which is why the two-year average of declared income is the standard measure. There are exceptions — if you have moved from employee to contractor in the same field, some lenders will consider a shorter history, particularly where you can show continuity of the same work and the same clients.
Can I get a mortgage if I write off most of my income?
Usually yes, but the route matters. Add-backs recover some of it at bank rates; insured business-for-self programs recover more at a small premium; bank-statement lending largely ignores the tax return at a higher rate. Which one applies depends on how much you need to borrow relative to what you have declared — a five-minute conversation settles it.
Do I pay a higher interest rate as a self-employed borrower?
Not if your declared income supports the mortgage — you are treated identically to a salaried applicant. A premium only appears when the file needs an insured self-employed program or an alternative lender, and even then the gap is usually smaller than people expect.
How much down payment do I need?
The same minimums as anyone else if you qualify conventionally: 5% on the first $500,000 and 10% on the portion up to $1.5 million. Insured business-for-self programs and alternative lenders typically want 10% to 20%, and stated-income files at a B lender generally start at 20%.
Will incorporating hurt my mortgage application?
Not inherently, but it changes what a lender sees. Once you incorporate, your personal return may show only salary or dividends while the profit sits inside the company. Some lenders will look through to retained earnings and some will not. If you are planning to buy within two years, talk to me before your accountant finalises how you pay yourself.
Social Proof
Clients with files that needed explaining
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“Raj always goes above and beyond for his clients. As a Real Estate agent it is important to have a mortgage agent like Raj on your side because he is someone you can trust. I send Raj all of my clients looking for mortgage help and I even used him for my personal mortgage.”
★ ★ ★ ★ ★ Rated 5 out of 5
“I found Raj to be sensible, realistic, and down to earth about what I could afford. He researched the lending market and I believe he got me the best deal I could hope for on a mortgage. Raj was recommended to me by my financial adviser whom I trust to manage my investments. She also chose to work with Raj personally so I knew he was someone I could trust to be of high quality and integrity.”
★ ★ ★ ★ ★ Rated 5 out of 5
“Raj has extensive knowledge and experience in the mortgage industry which allowed him to tailor solutions to my specific needs. He’s reliable, professional and personable. I would highly recommend him if you’re looking for someone who is honest and will deliver results. So pleasant to deal with.”
Business-for-Self
Let’s find out what you actually qualify for
Tell me what you are trying to do — buying, renewing, refinancing, or something that doesn’t fit a standard bank box. I will come back to you the same business day, usually much sooner.
Office
10 Queen Street West, Elmvale, ON L0L 1P0
Phone
Email
Send me two years of returns and I’ll tell you where you stand.
No application and no credit pull to start. I will tell you which of the four routes fits, roughly what it costs, and whether waiting a few months would put you in a materially better position.