Prepare two years of personal tax records, current business documents, statements and down-payment history. If income changed, explain why and support the explanation with evidence.
Income is assessed in context
Sole proprietors, incorporated owners, contractors and commissioned professionals are not documented in exactly the same way. Some lenders rely on reported personal income. Others may consider eligible add-backs, corporate strength or alternative documentation under specific programs.
The figures across tax returns, notices of assessment, business financials and bank statements should tell a consistent story.
Documents to organize
- T1 Generals and Canada Revenue Agency notices of assessment.
- Business financial statements and corporate schedules, where applicable.
- Business registration, incorporation records or professional licence.
- Business and personal bank statements.
- Contracts, invoices or evidence of ongoing revenue.
- Proof of down payment and details of all debts.
Reduce underwriting surprises
File taxes on time, keep business and personal activity clear, and document unusual deposits. If the latest year is stronger or weaker, prepare interim results or contracts that explain the change.
A useful pre-approval identifies the income figure and program being used, the documents still outstanding and the assumptions that could change approval.
Frequently asked questions
Can I qualify with less than two years in business?
Some programs may consider shorter history when related experience and documentation are strong.
Can corporate income help?
Some lenders may consider corporate financial information, but methods vary.
Will lenders check taxes owing?
They may require confirmation that tax obligations are paid or acceptably addressed.