Self-Employed & Business Income
Your income is real. Your file should prove it.
Write-offs that cut your tax bill also cut your qualifying income. The job is building a file that shows lenders what you actually earn — within the documentation they accept.
You earn well. Your tax return says otherwise.
If you write off aggressively — as you should — your line 150 income understates what you can actually afford. That gap is the entire problem.
Sole Proprietors & Contractors
You file a T1 with business income. Write-offs reduce your taxable income — and the number lenders see.
Incorporated Business Owners
Your corporation retains earnings or pays you dividends. Lenders need a clear path from corporate revenue to personal qualifying income.
Commission & Gig Earners
Your income varies month to month. Lenders want consistency they can average, not a single good month.
How self-employed files get approved
Understand what lenders actually measure
A lender does not care what you deposited — they care what you can prove on paper. That means your notice of assessment line 150 income, or an accepted alternative like a business-for-self income statement.
Document the add-backs
Legitimate non-cash expenses (depreciation, home office, vehicle) reduce your tax bill but not your real earning capacity. The file shows these clearly so the lender can add them back.
Match to the right program
Some lenders accept two years of T1 Generals with add-backs. Others offer stated-income programs at a different rate tier. The right fit depends on your documentation strength, not just your income.
Structure and submit
The file is packaged to answer the underwriter's questions before they ask them. Clear cover notes, consistent numbers, supporting documents in order.
What lenders typically ask for
The exact list varies by lender and program, but most self-employed files start here.
- 2 years of T1 General tax returns with all schedules
- 2 years of notices of assessment (NOA)
- Financial statements or T2 corporate return (if incorporated)
- Business licence or articles of incorporation
- 6–12 months of business bank statements
- GST/HST returns where applicable
- Proof of business existence (contracts, invoices, CRA business number)
Additional documents may be requested depending on the lender, income type, and program.
Straight answers
Most lenders require a minimum of two years. Some alternative programs accept less with strong compensating factors — larger down payment, excellent credit, or substantial assets. The requirement varies by lender and program.
Some lenders offer bank-statement programs where deposits over a period are used to estimate income. These sit in a different rate tier than conventional programs and typically require a larger down payment.
Not necessarily. If your file qualifies under a prime insured or conventional program with full income documentation, you access the same rates as a salaried borrower. Alternative documentation programs carry a premium because the lender accepts more risk.
It depends on how you pay yourself. Incorporation gives flexibility — salary, dividends, or retained earnings — but lenders assess personal qualifying income regardless of corporate revenue. The structure matters for how income is documented, not whether it exists.
Lenders typically average two years. A single weaker year does not disqualify you, but it pulls the average down. If there is a clear explanation — a one-time event, a contract gap, reinvestment — that context helps in the file submission.
See what you qualify for
A short conversation about your income, your business, and what you are looking for. No commitment, no credit pull.