Is two years of history mandatory?

It is the standard at most lenders. Some accept less if you previously worked in the same field as an employee, with demonstrable history.

Do self-employed borrowers pay a higher rate?

Not if the income qualifies traditionally. Rates rise only when using a stated-income program or an alternative lender.

Can I use my corporation's income?

Often yes, in whole or in part, if you own the company and its statements support it. Criteria differ between lenders.

Does a tax balance prevent me from buying?

Generally yes until it is settled. It can sometimes be paid off through the financing during a refinance.

Mortgage Tips

Self-Employed Mortgage in Quebec: Documents and Solutions

By Yahia Nour Eddine KenouchePublished on August 8, 2026 9 min read

Self-employed professional preparing a mortgage file in a home office

Being self-employed does not make a mortgage hard to get: how your income is reported does. An entrepreneur who optimizes taxes often shows low net income while their real ability to pay is solid. Here is how to build a strong file.

How your income is calculated

The most common method takes the average of net income reported over the last two years, as shown on your notices of assessment.

Some lenders use a different average, keep the lower recent year, or allow adding back certain non-recurring expenses such as accounting depreciation. Methods vary by lender and program.

If you are incorporated, many lenders will include part of the retained earnings, provided you can demonstrate ownership and the company's financial health.

Documents to prepare

Two full years of T1 general returns with the matching notices of assessment, and no outstanding balance with the tax authorities.

For an incorporated business: financial statements for the last two fiscal years, business registry records, and often proof of share ownership.

Add recent invoices or contracts, business bank statements, and GST/QST registration where applicable. A complete file from the start speeds up everything.

Programs for non-traditional income

Mortgage insurers offer stated-income programs for self-employed borrowers in business at least two years, with a higher minimum down payment and an increased premium.

These programs rely on income that is reasonable for the industry, supported by bank statements and contracts, rather than tax net income alone.

On the uninsured side, several alternative lenders accept files with 20% to 25% down, in exchange for a slightly higher rate and sometimes a lender fee.

Mistakes that cost an approval

Changing business structure right before applying: moving from sole proprietor to incorporated can reset your income history in the lender's eyes.

Carrying an unpaid tax balance: a frequent decline reason, because the tax authority holds priority claim on the property.

Deliberately under-reporting the year before buying. Two years of tax planning with your accountant is often worth more than a slightly lower rate.

Building a winning file over 24 months

Stabilize reported income: two comparable years beat one excellent year followed by a weak one.

Keep personal and business finances clearly separate: lenders struggle with commingled accounts.

Maintain clean credit and a down payment documented over 90 days. For a self-employed borrower, documentation quality largely offsets income irregularity.

Frequently asked questions

Is two years of history mandatory?: It is the standard at most lenders. Some accept less if you previously worked in the same field as an employee, with demonstrable history.
Do self-employed borrowers pay a higher rate?: Not if the income qualifies traditionally. Rates rise only when using a stated-income program or an alternative lender.
Can I use my corporation's income?: Often yes, in whole or in part, if you own the company and its statements support it. Criteria differ between lenders.
Does a tax balance prevent me from buying?: Generally yes until it is settled. It can sometimes be paid off through the financing during a refinance.