Short answer: Most self employed borrowers need two years of T1 General returns with all pages, two years of Notices of Assessment, and proof of the business (registration or articles of incorporation). Incorporated owners add T4 and T5 slips and sometimes corporate financial statements. Contractors may add T4As, contracts or invoices. Sending a complete, organized package up front avoids repeated requests.
Sole Proprietors
- Personal T1 General, usually two years
- Notices of Assessment, usually two years
- Proof of business registration
- Business bank statements (sometimes)
- GST filings, when applicable
Incorporated Business Owners
- Personal T1 General and NOA
- T4 slips if you pay yourself salary
- T5 slips if you pay yourself dividends
- Corporate financial statements (sometimes)
- Articles of incorporation and corporate registry documents
→ Related: Incorporated Owners: Salary vs Dividends
Contractors and Consultants
- Personal T1 General and NOA
- T4A slips, when applicable
- Contracts or invoices (sometimes)
- Business bank statements showing deposits (sometimes)
- Proof of ongoing work (sometimes)
What Causes the Most Delays
- Incomplete tax packages
- A missing NOA for the most recent year
- Business and personal money mixed together
- Income changes with no explanation
- Down payment statements that don’t match deposits
→ Related: How Lenders Calculate Self Employed Income
How We Help
We tell you exactly which documents your structure needs, check them before they go to a lender, and match you to lenders that treat your income fairly. Self employed mortgages · Book a call.
Frequently asked questions
How many years of taxes do lenders need?
Most lenders want two years of T1 General returns and the matching Notices of Assessment. Some programs consider one year in specific cases.
Do self employed borrowers need corporate financial statements?
Usually only incorporated owners, when the lender needs to verify retained earnings, dividends or business health. Sole proprietors typically don't.
Do lenders use gross business revenue?
No. They use net business income after expenses, as reported to CRA.
Can I qualify with write offs?
Yes, but write offs lower taxable income, which can lower the mortgage you qualify for. Some lenders add back certain non cash expenses like depreciation.
This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed through Mortgage Connection Inc.