SELF-EMPLOYED · INCORPORATED · COMMISSION · CONTRACT

Four routes, tried in this order

Nobody should be sent straight to a B lender because they are self-employed. The order matters — each step down costs money, so the cheaper routes get tested first.

ROUTE 1

Prime, using your line 150

Banks average your last two years of net income after write-offs. If that averaged figure supports the mortgage, you get the best rate available and nothing else needs discussing. Worth testing first every single time.

Fits: Two-plus years filed, and the after-write-off income is genuinely sufficient

ROUTE 2

Prime with income add-backs

Some lenders add back a portion of specific deductions — capital cost allowance, a home office, business use of vehicle — because those are paper expenses rather than cash out the door. Done properly this can lift usable income meaningfully without changing a thing about how you file.

Fits: Heavy legitimate write-offs on a profitable business

ROUTE 3

Stated income at prime

A handful of prime lenders allow a reasonable income to be stated for an established business, supported by bank deposits rather than tax returns. Requires strong credit and usually 20% down or more.

Fits: Two-plus years in business, strong credit, solid deposits

ROUTE 4

Alternative lenders on bank statements

Fits: Under two years filed, or income that tax returns genuinely understate

What to have ready

Having these together before the first conversation shortens the whole process, often by weeks.

• Two years of T1 Generals, all pages
• Two years of Notices of Assessment from CRA
• Business financial statements, or T2 returns if incorporated
• Six to twelve months of business bank statements
• Articles of incorporation or your business licence
• A current mortgage statement if you already own

Two things worth knowing early

Do not restructure your taxes for a mortgage without doing the arithmetic. Declaring an extra $40,000 to qualify can cost more in tax than the rate difference saves. Sometimes it is still right — but it should be a calculation, not a reflex.

Two full years is the threshold that changes everything. If you are at eighteen months, a short alternative term that ends after your second filed year is often the cheapest path overall.

Let's look at your actual numbers

Bring last year's return and a rough idea of your deposits. I’ll tell you which of the four routes fits, and if the honest answer is "wait six months", I will say that too.

Rate examples are being updated so every rate shows its APR, term and date.