Self-Employed & Business Owners
Your income doesn't fit a T4 box. That's not a problem.
Business owners, contractors and commission earners get declined for presentation, not for affordability. My job is to present your income the way lenders need to read it.
Write-offs help at tax time. They hurt at mortgage time.
If you've built your business to minimize taxable income, your tax returns understate what you actually earn. Bank branch staff often stop reading there.
I work with lenders who understand business income — and I structure your file so your real earning capacity is visible and documented.
Income documentation
Notices of assessment, financial statements, contracts and bank statements — organized into a file that reads clearly.
Add-backs where they apply
Certain deductions can be added back to qualifying income. Which ones depends on the lender — knowing that is the work.
Lender matching
Bank, credit union, monoline or alternative — I place your file where its strengths count and its shape isn't penalized.
Newly incorporated?
Less than two years of business history narrows the options, but it doesn't close the door. There are paths — we map them.
Who this is for
Incorporated owners
Salary, dividends, retained earnings — all part of the picture.
Sole proprietors
Trades, consultants and freelancers filing business income personally.
Commission earners
Variable income that averages out well over two or three years.
Contractors
Fixed-term contracts and invoiced work with a documented history.
What a lender is actually reading.
Five things decide a self-employed file. None of them are a T4.
Income stability
Most lenders want two or more years of history and qualify you on the average. Steady or growing is what they're looking for.
The health of the business
How long you've operated, what you do, who your clients are, and whether the books show consistent revenue.
Credit, personal and business
With variable income, your score carries extra weight. Low utilization and on-time payments widen your options.
Taxes up to date
Personal arrears or an outstanding HST/GST balance will stop most files. Clearing them first is usually the fastest fix.
Where the down payment came from
Lenders trace it through statements showing the money was saved over time. On stated-income files, gifted funds often aren't accepted.
How your structure changes the math
Sole proprietors are read on net income after expenses. Incorporated owners are read mostly on the salary and dividends they pay themselves.
The two-year average, in practice
Year one — rebuilding your client base
$72,000
Year two — business grows
$128,000
Qualifying income used
$100,000
If your most recent year is the lower one, some lenders will use that figure instead. Some will add back expenses like vehicle costs, home office or depreciation — which ones, and how much, is lender by lender. That's the part I do for you.
The document list, before you're asked twice.
Requirements vary by lender, but a file with these ready moves fastest.
Notices of assessment — two to three years, showing no balance owing.
T1 General — your full return, so income after expenses is visible.
Financial statements — accountant-prepared, if you're incorporated.
Bank statements — three months, personal and business.
HST/GST filings — proof collected and paid, once revenue passes $30,000.
Articles of incorporation or business licence — proof the business is real and active.
Contracts or recent invoices — evidence the work continues.
Government ID — plus proof of your down payment source.
Where your file goes matters as much as what's in it.
Self-employed borrowers can qualify with the same lenders as salaried employees. What changes between them is how they read your income and how much documentation they need.
Banks & major lenders
The lowest rates and the strictest rules. They want two or more years of consistent income, clean credit and full documentation.
The right home for a file with strong, fully provable financials.
Credit unions
More flexibility on income verification and debt ratios. Many will weigh the reasonability of your income — your history and business activity — not just the taxable figure.
Rates can sit slightly higher; approval is often easier.
Alternative lenders
Comfortable with irregular income, a shorter business history or a lower score. Higher rates and possible lender fees are the trade.
Often a two-year bridge — then we refinance you into an A lender.
When your tax return doesn't tell the whole story.
Some lenders allow a stated-income application: you state what you realistically earn for your industry, and the file is supported by evidence that the business is active and healthy rather than by taxable income alone.
What these lenders look for
A down payment of at least 10%, and clear proof of where it came from.
Strong personal credit — it carries more weight here than anywhere else.
Evidence the business is running: invoices, contracts, business bank statements.
All personal and business taxes paid, with nothing outstanding.
A stated income that's reasonable for your industry and consistent with your records.
What to know going in
The rate is usually higher than a fully documented file, because the lender is carrying more uncertainty.
Not every mortgage insurer supports stated income, which narrows the lender list.
Gifted down payment funds are often not accepted on these files.
If you can document your income fully, that route is almost always cheaper. We check that first.
Pre-approval, when your income varies.
A pre-approval gives you a price range, a working estimate of your qualifying income, and — with a bank or major lender — a rate hold. It is not a final approval; your documents still get underwritten once you have a property.
Some self-employed files can't be formally pre-approved at all, because they need a human underwriter and a live offer. That happens when you're relying on stated income, have under two years of history, your income swings hard year to year, or we're working with an alternative lender.
When that's the case, I still give you a defensible price range to shop with — built from your current income and business activity — so you're not guessing.
Before you apply, these help
Keep business and personal banking completely separate — it makes your income traceable.
Ease off aggressive write-offs in the year or two before you apply, if a purchase is the bigger goal.
Hold a cushion — a few months of expenses in savings or business reserves reassures an underwriter.
Pay down credit cards and lines of credit; revolving balances hurt your debt-service ratios.
A larger down payment widens your lender list, and at 20% removes default insurance.
A salaried spouse or a co-signer can lift qualifying income when your own isn't quite enough.
"As a self-employed client I expected a headache. She made it straightforward and knew exactly which documents mattered."
★★★★★ — Clinton Bradshaw · Google review
Common questions
How many years of business history do I need?+
Two years is the conventional benchmark, and it opens the widest set of options. With less history there are still lenders to work with — the terms and down payment expectations shift.
Which documents should I gather?+
Typically two years of notices of assessment and tax returns, business financial statements, articles of incorporation or business registration, and recent business bank statements. I'll send a specific list for your situation.
Will I pay a higher rate?+
Not necessarily. Well-documented self-employed files often qualify at standard rates. Where a premium applies, I'll tell you exactly why and what would remove it.
Should I stop writing off expenses?+
Not necessarily — but understand the trade. Every deduction lowers the taxable income a lender qualifies you on, and your tax return is the document they lean on hardest. If a purchase is coming in the next year or two, it's worth balancing tax efficiency against how much mortgage you want to carry. Plan it with your accountant and me together.
Does default insurance work differently for me?+
If you can prove income through your notices of assessment, it works exactly as it does for a salaried buyer: a premium applies under 20% down, and it's added to your mortgage. On a stated-income file you'll need at least 10% down, and only certain insurers participate — which is part of why lender selection matters.
My bank declined me. Is that final?+
No. One lender's decline is one lender's policy. It's often worth reviewing what was submitted and how — the same income can qualify elsewhere.