Key takeaways
- Many self-employed borrowers can get a mortgage, but lenders often look at documented income over multiple years.
- Tax write-offs that lower your taxable income can also lower the income lenders can count.
- Organized records and a clean tax history help.
- Alternative lenders may offer other options, usually at a higher cost.
Self-employed borrowers are often told the process is difficult. It is different, but it isn't impossible. Preparation makes a big difference.
How lenders see self-employed income
Salaried employees have a pay stub. Lenders need another way to verify yours, so they typically look at your documented income over a couple of years. If you pay yourself a low salary and take dividends, or use many business deductions to reduce your taxable income, the income a lender can use may be lower than what you actually earn.
Documents commonly requested
- Personal tax returns (T1 General) and Notices of Assessment, typically for the last two years
- Proof you're up to date with the CRA (no tax arrears)
- For incorporated business owners: articles of incorporation, financial statements and T2 returns
- Business licence or registration
- Recent personal and business bank statements
- GST/HST filings, if applicable
- Down payment history
Requirements vary by lender and by how long you've been in business.
Different types of lenders
- Banks and credit unions usually use tax-return income and have the best rates when you qualify.
- Alternative lenders may consider bank statements or other evidence of income, but typically charge higher rates and fees, often with a shorter term and a plan to move to a conventional lender later.
How to prepare
- File your taxes on time and pay any balance owing
- Keep business and personal finances separate
- Talk to your accountant about how your income will look to a lender, before you start your application, not after
- Pay down personal debts and keep your credit healthy (see credit and your mortgage)
- Save a larger down payment if possible. It can widen your options
A common mistake
Minimizing taxable income is smart for taxes but can limit your borrowing power. If you're planning to buy in the next year or two, it's worth discussing the trade-off with your accountant and mortgage professional.
See also: self-employed mortgage services.
This article is general information, not personalized mortgage, legal, tax or financial advice. Rules, rates and eligibility change and depend on your circumstances and lender criteria. Confirm details before you make decisions.
Want to talk it through?
A free, no-pressure 30-minute call can help you apply this to your own situation.
Keep reading
The Bank of Canada Raised Its Rate to 2.50%: What It Means for Your Mortgage
The Bank of Canada raised its policy rate by 25 basis points to 2.50% on October 28, 2026. Why it did, what it means for variable and fixed mortgages, and what could come next.
4 min read · Read →RenewalsRenewing Your Mortgage? 6 Questions to Ask Before You Sign
Your lender's renewal letter is one option. Here are six questions worth asking first.
4 min read · Read →First-Time Home BuyersFirst-Time Buyer Checklist: Before You Talk to a Mortgage Agent
A practical checklist for Ontario first-time buyers to get organized before the first conversation.
4 min read · Read →