Self-employed
Self-Employed? How Lenders in Canada Actually Assess Your Income
If you're self-employed, a mortgage lender doesn't just look at what hits your bank account — they look at your Notices of Assessment and T1 filings, usually averaged over the last two years. If this year was lower than last, many lenders use the lower figure, not the average, so write-offs that shrink your reported income can quietly shrink what you qualify for too.
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This is exactly why self-employed mortgage qualification trips people up — your accountant's job is to lower your tax bill, and a lender's job is to see your real earning power. The two don't always agree, and a bank that only sees one document type will often say no where a broker sees options.
I see this constantly with self-employed clients across Vaughan and Ontario — a lender's rulebook doesn't change by province, but which lenders actually understand your file does.
Documents I typically ask for
- Two years of T1 General tax returns
- Matching Notices of Assessment from the CRA
- Business financial statements if you’re incorporated
- 6–12 months of bank statements showing consistent deposits
Approvals always depend on lender criteria and a full review of your file.
