Working for yourself gives freedom — but when it’s time to get a mortgage, lenders usually expect steady Pay-Stubs or T4 slips. For self-employed Canadians, it means extra steps. The good news? It’s still possible.
What lenders look for:
- Tax returns (T1 General) and Notices of Assessment (NOA) for the past 2–3 years to prove stable income.
- If revenue fluctuates: business financial statements, bank deposits, or a higher down payment (often 10–20%) help.
- Good credit history and low debt-to-income ratio — that’s a must.
Why it works:
When you present proper documents showing consistent income, lenders may treat you like salaried borrowers — sometimes even with standard interest rates.
Tips for self-employed applicants:
- Keep 2–3 years of financial documents (tax returns, NOAs).
- Maintain business bank statements showing regular deposits.
- Avoid maximizing write-offs just to lower taxes — lenders may view too-low income skeptically.
- If possible — aim for 20% down payment to skip mortgage default insurance.
- Work with a mortgage broker who has experience with self-employed cases.
With preparation and transparency, being your own boss doesn’t have to stand in the way of homeownership.