Self-Employed Mortgages in Toronto

Toronto runs on self-employed people

Toronto's economy leans on people who work for themselves: renovation and trades crews, rideshare and delivery drivers, IT and marketing consultants, realtors, and incorporated doctors, dentists and lawyers. Each group runs into a different problem at the bank.

The common one: banks usually qualify you on your taxable income after write-offs, over the past two years. In a city where homes cost what they do in Toronto, a lower line on your tax return can shrink what you qualify for fast. The fix is matching your file to a lender that reads your income the right way. Here's how that works for the most common Toronto files we see.

Trades and contractors

Plumbers, electricians, renovation crews and general contractors often write off trucks, tools and subcontractors, so taxable income looks small next to what the business brings in.

• What helps: two years of T1 Generals and Notices of Assessment (NOAs), business bank statements, and proof your HST and income taxes are paid up.
• Lender options: some lenders add back certain expenses, and B-lenders may use stated income or bank statements when taxable income doesn't tell the full story.
• Watch for: a big tax bill owing to the CRA. Lenders will want it paid or included in the plan. Sometimes we can pay it off with the new mortgage.

Rideshare and delivery drivers

If you drive for Uber, Lyft or a delivery app in Toronto, you're running a small business. Two local and federal rules shape your file:

• City licence: Toronto requires drivers for private transportation companies (like Uber and Lyft) to hold a City-issued PTC driver licence, applied for through the company. See toronto.ca's page for PTC drivers.
• GST/HST: the CRA requires self-employed rideshare drivers to register for GST/HST from their first fare, even under the $30,000 small supplier limit. See the CRA's rideshare guidance.
• What helps: your T1 Generals and NOAs showing the income, annual platform statements, and HST filings that are up to date. A lender sees clean filings as a stable business, not a side gig.

Consultants and contract workers

Many Toronto professionals in tech, finance and marketing work on contracts through their own business. If you moved from a salaried job to contracting in the same field, some lenders will look at your work history together with your new income, so you may not have to wait two years.

• What helps: current contracts, invoices, two years of tax returns if you have them, and a short note on your work history in the field.
• Watch for: gaps between contracts. We'll explain how each lender treats them before you apply.

Incorporated professionals and business owners

Doctors, dentists, lawyers, accountants and other business owners who incorporate often pay themselves a mix of salary and dividends and leave money in the company. That's smart for taxes, but it can make personal income look low.

• What helps: personal T1s and NOAs, two years of corporate financial statements, and a summary of how you draw income.
• Lender options: some lenders look at the company's earnings, retained earnings or add back part of what stays in the corporation. The right lender depends on how your company is set up.

Example scenario

Illustrative example, not a specific client. A Leslieville renovation contractor with strong sales but low taxable income after truck and equipment write-offs was declined by his bank for a refinance to pay off a CRA balance. We compared lenders that add back certain expenses with B-lender bank-statement programs, set the payoff of the tax balance into the plan, and showed him the cost and the path back to a bank at renewal before he chose.

Every file is different. Your options depend on your documents, credit and equity.

Buying, refinancing or renewing in Toronto

We help self-employed Torontonians buy, refinance and switch lenders at renewal. If you own already, refinancing to pay off high-interest debt or a CRA balance is common; see Mortgage Refinance in Toronto. For the full background on documents, add-backs and A vs B vs private lenders, read our main Self-Employed Mortgages page.

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