Self-employed? Getting a mortgage works differently for you.
Lenders look at your tax returns, not your sales. This guide explains how they read your income, what to prepare, and which lenders fit your situation.
You've started an application.
Saves as you go · No credit check · A licensed mortgage professional follows up
1Banks usually qualify self-employed borrowers on the income shown on their last two Notices of Assessment, not on what the business brings in.
2Writing off expenses lowers your taxes, but it also lowers the income a lender can use. Some lenders add back items like depreciation or a home office.
3If your declared income is low, "business-for-self" programs and B lenders can look at bank statements and the health of your business instead.
4Two years in business is the usual starting point. Less than that is possible, especially if you stayed in the same line of work.
Get ready
What lenders will ask you for
Notices of Assessment and full T1 General returns for the last 2 years
Proof your personal taxes (and HST, if registered) are paid up to date
Business registration or articles of incorporation
Business financial statements for 2 years (if incorporated)
6 to 12 months of business and personal bank statements
Photo ID and proof of your down payment
Your options
Which kind of lender fits you
Option 1
A lender (banks, credit unions)
Best rates. Usually 2+ years in business and enough income on your Notices of Assessment.
Option 2
B lender / business-for-self program
For strong businesses with low declared income. Uses bank statements or stated income; slightly higher rates and a lender fee.
Option 3
Private lender
Short-term bridge when timing or credit rules you out today, with a plan to move to a regular lender later.
Avoid these
Common mistakes
!Writing off so much that your taxable income will not support the mortgage you want.
!Owing CRA money: unpaid personal tax or HST is a common reason for a decline.
!Mixing personal and business spending in one account, which makes your income hard to prove.
!Applying at several banks yourself, which adds credit checks and slows everything down.
Take action
Your first steps
1Pull your last 2 Notices of Assessment from your CRA My Account.
2Confirm your taxes and HST are filed and paid.
3Ask your accountant what can be added back to your income.
4Keep business and personal banking separate from today on.
5Start the intake so a broker can match you with the right lender type.
The intake
What your application will ask
Your online application goes one topic at a time and saves every answer and document as you go, so you can stop and come back. It never runs a credit check, and a licensed mortgage professional reviews it and follows up.
For self-employed borrowers
Are you a sole proprietor, in a partnership, or incorporated? How many years in business?
What industry are you in, and what does the business do?
What income shows on your last 2 Notices of Assessment (line 15000), and does it match what you actually earn?
If incorporated: do you pay yourself salary, dividends, or both?
Which business expenses do you write off that a lender could add back (home office, vehicle, depreciation)?
Are your personal and business taxes, including HST, filed and paid up to date?
Can you provide 6 to 12 months of business bank statements and your financial statements?
Plus the basics everyone answers 13
Your full name, email, mobile number and the best time to call.
The city you live in, and whether you are a Canadian citizen, permanent resident, or other status.
Are you applying alone or with someone else? If with someone, their name and how you are related.
Your goal: buy, refinance, renew, take out equity, or consolidate debt?
The property type (house, condo, multi-unit) and the city it is in.
Will you live in it, rent it out, or both?
The purchase price or estimated value, and your target closing or renewal date.
Your down payment or available equity, and where it comes from (savings, RRSP/FHSA, a gift, sale of another property).
Your approximate yearly household income before tax.
Your monthly debt payments: car loans, credit cards, lines of credit, student loans, support payments.
Your own estimate of your credit score: excellent, good, fair, poor, or not sure.
In the last 7 years, any bankruptcy, consumer proposal, collections, or missed mortgage payments?
May the broker contact you? (A credit check is only ever run later, with your separate written consent.)
Scroll for more
Answers
Questions people ask
How long do I need to be self-employed to get a mortgage?
Most banks want 2 years of filed tax returns. Some lenders accept less if you worked in the same field as an employee before starting your business.
Which income do lenders use for self-employed borrowers?
Usually the average of the last 2 years of income on your Notices of Assessment. Some lenders add back certain write-offs, and business-for-self programs can use bank statements instead.
Can I get a mortgage if I write off most of my income?
Often yes, through a business-for-self program or a B lender that looks at your business deposits. Expect a slightly higher rate and possibly a larger down payment.
Do I need a bigger down payment because I am self-employed?
Not if you qualify with a regular lender. Some stated-income programs need 10 to 20 percent or more.
Will owing CRA money stop my mortgage?
It can. Lenders want taxes paid up to date because CRA can place a claim ahead of the mortgage. A payment arrangement may be enough; your broker can check.
Does starting the intake affect my credit?
No. The intake is just questions. A credit check is only done later, with your separate permission.
General information, not mortgage, legal or tax advice. Lender rules change and every application is reviewed on its own facts. Your application and documents are stored privately and go only to a licensed mortgage professional at Top Mortgages Inc; they are never sold, and no credit check is run without your separate written consent.