How your structure affects the file
Sole proprietors and partnerships
Personal tax documents often form the starting point, with supporting business information used to explain revenue and expenses.
Incorporated owners
Salary, dividends, corporate financial statements and ownership details may all be relevant. Retained earnings are not automatically treated as personal income, but certain lender programs may review the broader business picture.
Contract and commission income
Contracts, earnings history and industry continuity can help establish predictability.
Documents that may be requested
- Personal tax returns
- Notices of assessment
- Business financial statements
- Articles or registration
- Business bank statements
- Contracts or invoices
- Proof taxes are current
- Down payment history
Plan before the tax deadline
Tax efficiency and mortgage qualification can pull in different directions. If buying or refinancing is on the horizon, speak with the mortgage broker and accountant early enough to understand the trade-off. Mortgage guidance is not tax advice.
Common self-employed questions
Do I always need two full years in business?
A longer history is common, but exceptions may exist where there is strong industry continuity, suitable documentation and a lender program that fits. The details matter.
Can business expenses be added back?
Some lenders may consider eligible non-cash or one-time expenses under specific policies. Treatment varies and must be supported by documents.
Should I change my tax filing to qualify?
Do not make tax decisions solely for a mortgage without professional advice. Coordinate early with your accountant and broker so you understand the consequences.