Self-Employed Mortgages in Toronto
Your real income, presented the way lenders need to see it.
Banks default to a narrow view of self-employed income — Line 150 only, two years averaged, after write-offs. Many lenders are more flexible: business bank statements, gross-up programs, and stated-income options exist. A broker matches your story to the right lender.
Who this is best for
- Incorporated business owners
- Sole proprietors and consultants
- Commissioned sales professionals
- Real estate, trades, and gig-economy operators
- Owners with strong revenue but optimized tax returns
How a Toronto mortgage broker helps
- Reviews T1s, T2s, business bank statements, and contracts
- Identifies lenders offering add-backs and gross-ups
- Considers stated-income / business-for-self programs where appropriate
- Coordinates with your accountant when needed
- Avoids needless declines by matching the file to the right desk
What lenders typically look at
- Generally 2 years of self-employed history
- Two years of NOAs and T1 Generals (or T2s if incorporated)
- No taxes owing or a payment plan in place
- Stronger down payment improves access to A-lenders
- Stress test still applies to most programs
Documents you'll likely need
- Two years of personal NOAs
- Two years of T1 Generals (and T2 + financials if incorporated)
- Business registration / Articles of Incorporation
- 6–12 months of business bank statements
- Major client contracts (if applicable)
A Toronto example
Incorporated consultant, west-end semi
An incorporated consultant with strong gross revenue but lower personal Line 150 is reviewed under both traditional and self-employed-friendly programs, including business-statement-based underwriting.
Frequently asked questions
+Can I qualify with just one year of self-employment?
Sometimes — alternative lenders consider it with strong supporting documentation. A broker will tell you upfront if it's realistic.
+Do my write-offs hurt me?
With traditional lenders, yes. With self-employed programs, many lenders gross up or use business deposits instead of Line 150.
+Will I pay a higher rate?
If you qualify with an A-lender, no premium. If you use an alternative program, expect a modest premium until you can move back to A-lender financing.
+Do I need to be incorporated?
No — sole proprietors, partnerships, and incorporated businesses can all qualify under the right program.
Related
This website does not guarantee any mortgage rate, approval, or product. We do not provide mortgage advice on this website. All mortgage transactions are handled by the licensed brokerage identified on this site, in accordance with FSRA requirements.