The Problem We Solve
Lenders qualify you on declared income; accountants minimize declared income. Business owners with strong real cash flow routinely get offered smaller mortgages than their salaried employees. The fix isn't declaring more and hoping — it's knowing which lender reads your specific file best, because the same tax returns can support meaningfully different qualifying incomes depending on where the application lands.
The Routes, Honestly Priced
A-lender route. Two-year average of declared income from your T1s and Notices of Assessment, with add-backs some lenders allow (capital cost allowance, portions of business-use-of-home) and gross-ups others apply. Best rates, no fees, down payments from 5–10% on insured programs. This is the destination — and often just a matter of correct lender selection and one planned tax year.
Bank-statement route. When tax returns won't carry the mortgage you need, alternative lenders assess real cash flow from 6–12 months of business bank statements. Typically about 1–2% above A-rates plus a roughly 1% fee, 20%+ down — a bridge, not a home. Every placement we make on this route comes with a written plan back to A-lending, usually within one to three years.
Incorporated owners have a lever employees don't: how you pay yourself — salary, dividends, retained earnings — changes what lenders can count. If a purchase is 12+ months out, the conversation between your accountant and us before your fiscal year closes is often worth more than any rate negotiation after it.
Before You Apply — the Deal-Killers
Three things sink self-employed files more than rates ever will: CRA balances owing (income tax or HST arrears — most lenders require them cleared, and your NOA shows the balance), mixed business and personal accounts (bank-statement programs need clean statements; six months of separation can be the difference), and a weak most-recent year (declining income qualifies on the lower figure — sometimes waiting one strong filing beats applying now). We'll tell you which applies to you before anything goes to a lender.
What to Have Ready
Two years of T1 Generals with statements of business activities, two years of Notices of Assessment showing no balance owing, business registration or articles of incorporation, and — depending on the route — recent business bank statements, financial statements, and an accountant's letter. Our full write-up on how lenders read self-employed income covers the mechanics in depth.
Frequently Asked Questions
How long do I need to be self-employed?
Most A-lenders want two full tax filings. Shorter histories can work where you've stayed in the field you were previously employed in, and alternative programs are more flexible — it's a placement question, not a hard wall.
Can I still put only 5% down?
Yes, if your declared two-year average supports the mortgage under standard rules — self-employment itself doesn't raise the minimum down payment. Bank-statement programs generally require 20% or more.
Should I just declare more income for two years?
Sometimes — more tax now can buy a much cheaper mortgage later, and on a large mortgage the rate difference can dwarf the extra tax. It's a math problem we'll run both ways with you and your accountant, in writing, before you decide.
What does this cost me?
A-lender placements cost you nothing — the lender compensates us, disclosed on every deal. Alternative placements can carry a fee, always disclosed in writing before you commit.
Get the Pre-Approval Prep Checklist
Walk into your pre-approval with the file lenders say yes to — what to fix first, what to bring, and the questions to ask when you get your number. We'll email you the free PDF.
Self-Employed and Planning a Purchase or Renewal?
Three minutes online. We'll tell you which route your file fits today — and whether one planned tax year would change the answer.
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