Self-employed mortgage document guide

Self-employed files usually move faster when the paperwork is ready before applying. Use this guide to help clients prepare.

Personal income

• Last two years of T1 Generals, including all schedules.
• Last two years of Notices of Assessment (NOAs).
• CRA statement of account showing no balance owing, or proof of a payment plan.
• Statement of business or professional activities (T2125), if a sole proprietor.

Business documents

• Proof of business: business licence, registration or articles of incorporation.
• If incorporated: two years of financial statements and corporate tax returns (T2), with the Notice of Assessment.
• Details of ownership percentage and how the owner is paid (salary, dividends, or both).
• Recent GST/HST filings, if registered.
• Business bank statements, typically six to twelve months.

Down payment and personal

• About 90 days of personal bank statements showing the down payment.
• Government photo ID.
• Gift letter, if part of the down payment is a gift.

Helpful for your client to know

Lenders often look at income after business deductions, so a lower net income on tax returns can reduce what a client qualifies for. Some lenders offer other ways to assess income. Which options fit depends on the client, so it's worth a short conversation before the tax return is filed.

Consistent records, separate business and personal accounts, and filings that are up to date all make a file easier to approve.

General information only, not mortgage, tax, legal or financial advice. Lender requirements vary and change.