- Most lenders want two years of self-employment history and tax returns.
- Write-offs lower your taxable income, and that can lower what you qualify for.
- Alternative lenders offer options when bank rules don’t fit.
1. How lenders see your income
Most lenders average your last two years of income as shown on your Notices of Assessment. Some will add back certain expenses, such as depreciation or a home-office deduction, but the starting point is what you reported to the CRA.
2. Documents to prepare
Have two years of Notices of Assessment and T1 Generals ready, plus proof that your taxes are paid. If you’re incorporated, add business financial statements. Include your business registration or articles of incorporation, and recent business bank statements.
3. Plan ahead of tax season
Aggressive write-offs reduce your tax bill, but they also reduce the income a lender can use. If you’re planning to buy in the next year or two, talk to your accountant and an agent before filing.
4. Explore alternative lenders
If your income is newer, irregular or hard to document, alternative (B) lenders can use bank statements or a reasonable stated income. Rates and fees are usually higher, often with a plan to move to a prime lender later.
5. Work with an agent who knows the rules
Lender policies for self-employed borrowers vary a lot. An independent agent can match your file to the lenders most likely to approve it, and present your income in its best light.
This guide is general information, not financial advice. Rules and programs change; an independent, licensed mortgage agent can confirm what applies to you.