Your tax return is not your income. We show lenders the business behind it.
If you run a business, drive a truck, earn commission or contract, a bank often sees the smallest number on your return and stops there. A properly built file shows the whole picture, and there is a lender for almost every version of it.
- You own a business or work for yourself and write off expenses.
- Your income is commission, contract or seasonal.
- You have been declined once and were not told why.
- Your last two years look very different from each other.
Estimate your lender income
Enter two years of net income and add-backs to see the figure a lender is likely to use.
Open the calculatorHow lenders read self-employed income- Two years of personal tax returns and Notices of Assessment, and for corporations the financial statements.
- The average of the two years, or the lower year if income fell sharply.
- Add-backs: some expenses, such as capital cost allowance and business use of home, can be added back to income by some lenders.
- Proof the business exists and is active: registration, GST number, contracts, invoices, business bank statements.
- For stated-income programs, whether the income you state is reasonable for your trade.
- We calculate the income a lender is likely to use before we approach anyone, so the answer is not a surprise.
- We choose the route on purpose: a prime lender with add-backs, a stated-income program, or an alternative lender, with the cost of each shown side by side.
- When a bank has declined you, we find out the real reason and fix that, rather than sending the same file to the next bank.
- We work with your accountant on timing. Sometimes a mortgage is easier three months after year end than three months before.
A contractor shows $58,000 and $71,000 of net income over two years after $30,000 a year in write-offs, and a bank declines a $450,000 purchase.
One lender averages the two years and adds back $9,000 of eligible expenses, reaching $73,500. Another uses twelve months of business bank deposits under a stated-income program. The first route is cheaper; the second approves a higher amount. We show both, with the fees and rates of each, and the client chooses.
Illustrative only. Add-back rules and stated-income programs differ by lender and change over time. Constants verified 2026-09-16.
Have these ready and the first meeting does the work of three.
Send them through our secure application, never by regular email.
- Two years of personal T1 returns and Notices of Assessment
- Corporate financial statements and T2, if incorporated
- Business registration or articles, and GST number
- Six to twelve months of business bank statements
- Contracts or invoices showing ongoing work
- Personal bank statements for the down payment
How many years self-employed do I need?
Most prime lenders want two years of history. Some accept one year if you were previously employed in the same field. Alternative lenders can be more flexible.
What is a stated-income mortgage?
A program where the lender accepts a declared income that is reasonable for your business, supported by bank deposits and proof the business is active, rather than tax returns alone. It usually costs a little more.
Will an alternative lender cost a lot more?
Rates are higher and there is usually a lender fee. It can still be the right move for a year or two while the returns catch up, with a plan to move to a prime lender at renewal. We show the total cost before you decide.
I was declined by my bank. Does that hurt my next application?
The credit check may show, but a decline itself is not recorded. What matters is why. We find out and address it before anything else is submitted.
Talk to Juan about your situation.
A first conversation costs nothing. Bring the questions; we bring the numbers.
Cristina
Newcomers on work permits or PR, first-time buyers, renewals and refinances.
English · Español
Juan
First-time buyers, self-employed income, and files a bank has already declined.
English · Español
Sheryl
First-time buyers, self-employed professionals, refinancing and home equity.
English
First-time buyers
Down payment, programs, pre-approval and what happens after your offer is accepted.
See the stepsNew to Canada
Work permit, PR or citizen: which lenders accept your status and your income history.
See the stepsRenewal and switch
Your renewal letter is an offer. We check it against the market before you sign.
See the steps