Self-EmployedJune 24, 2026· 9 min read

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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