Self-Employed Mortgage in Canada — How Lenders Calculate Your Income

Self-employed? You qualify on more income than you think

Writing off expenses is smart for taxes — but it can make your income look small to a lender. The good news: lenders have

Which one fits depends on how you're set up and how you file. A good broker picks the path that qualifies you for the most.

Enter the net self-employed income from your last two tax returns. Illustrative planning estimate — not an offer, an approval, or any specific lender's policy.

the 15% gross-up applies to sole props & partnerships only

A lender would likely qualify you on about

2 years of T1 Generals (with the business statement)

Business licence / articles of incorporation / GST returns

Typically more down (premium applies above 65% LTV insured)

Contracts / invoices that support your stated income

Let's find the income method that qualifies you

Tell us how you're set up and how you file, and a licensed RateStreet advisor will map the path — full-doc, gross-up, or stated income — that gets you the most, at the best rate your file supports.

This page and calculator are provided by RateStreet for

Self-Employed Mortgage in Canada — How Lenders Calculate Your Income | RateStreet

Self-employed and worried you won't qualify? Learn the three ways lenders count self-employed income — the 2-year average, the 15% gross-up, and stated-income programs — and estimate the income and mortgage you'd actually qualify for with RateStreet's free calculator.

A lender averages the net self-employed income on your last two tax returns (T1/NOA). If your income is declining, they use the lower year.

Sole proprietors and partnerships can add 15% back to that averaged income — recognising that write-offs aren't all real cash outflows. (Not available if you're incorporated and pay yourself salary/dividends.)

Write your income down too far to document it? Stated-income / business-for-self programs qualify you another way — up to 90% financing (insured) or 65–80% (uninsured), with 2+ years in business.