Self-employed
Self-Employed Mortgage in Toronto: How Lenders Actually See Your Income
T1 generals, NOAs, business financials, bank statements — and the right lender for each.
How A lenders read your income
Most federally regulated lenders average your last two years of declared personal income (line 150 / 26000 on your T1 General) and confirm it with Notices of Assessment. If you're incorporated, they'll also look at T4 salary plus T5 dividends from your corporation, plus 2 years of corporate financials to confirm sustainability.
Business-for-self programs
When declared income doesn't tell the whole story, B lenders and many credit unions offer programs that use 6–12 months of business bank statements, contracts, or stated income with reasonable proof. Rates are slightly higher than A but materially lower than private.
What to prepare before your application
- Last 2 years of T1 Generals and Notices of Assessment
- Last 2 years of T2 corporate returns and financial statements (if incorporated)
- 6–12 months of business bank statements
- Articles of incorporation or business licence
- GST/HST registration where applicable
- Proof of CRA balance owing is clear or on a payment plan
Frequently asked questions
+Can I qualify with less than 2 years of self-employment income?
Possibly. Some lenders accept 1 year if you have a strong related work history in the same industry, or if a co-applicant has stable employment income.
+Do I need to show 20% down as a self-employed borrower?
No. Self-employed borrowers can access insured mortgages with as little as 5–10% down through CMHC, Sagen, and Canada Guaranty self-employed programs.
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