Your business’s profit isn’t your qualifying income. Salary, dividends, and what stays in the corporation each get read on their own, and the lender doesn’t count all three.
A lender wants income it can trace to a dated record, not a rough average between gross sales and the latest profit line. That bridge gets built before anything is submitted.
Discuss my self-employed application with MathieuLenders don’t all read business income the same way. Some stick to reported personal income; others will look at the financial statements and corporate profit. I compare the rate, but the method first.
Your bank has one method for reading business income. If yours doesn’t fit the box, it’s a no, and a no doesn’t tell you which lender would have said yes. I know which ones accept business income and how they calculate it, and I put your file where it stands a chance, the first time.
How long you’ve been self-employed, whether it’s incorporated, how you pay yourself. No documents needed to start.
Salary, dividends, corporate profit: I prepare the figure a lender can trace back to a dated record.
I go to the ones whose calculation method works in your favour, instead of sending the same file everywhere.
I build the file with the explanations it needs and coordinate through to the notary.
The net profit your financial statements show doesn’t become qualifying income as-is. Taxes, working capital, business debt, and the lender’s method each take a cut. What counts is what flows out to you, and what the lender agrees to count.
Two lenders, the same financial statements, two different borrowing capacities. Sending more documents to the wrong lender changes nothing: the accepted method decides the outcome.
In most files you pay nothing: I’m paid by the lender that secures your financing. What it costs, in detail
These resources help organize the figures before the application is directed to a specific income method.
Two notices of assessment are what you’ll be asked for most often: the Financial Consumer Agency of Canada lists them among the records to provide. Some programs will look at a younger business, though. Your experience before starting out, your contracts, your liquidity, and your credit then carry a lot of weight. That opens the door to a review; it doesn’t guarantee the income gets accepted.
Not all of them. CMHC provides for a 15% gross-up, or add-backs of certain eligible deductions, on sole-proprietor or partnership income. Each lender then keeps its own rules and has to be able to identify the expense. A normal recurring business expense doesn’t turn into personal income you can spend.
I prepare two calculations. The first rests on your completed tax years. The second shows the current year, using your recent results and contracts. The lender decides whether it can use that. At least you’ll know whether your purchase rests entirely on income nobody has confirmed yet.
No, but it has to be disclosed, and it can affect the review, the amount, or the conditions. What matters: its status, your payment plan, and the evidence requested. I put it in the picture from the start rather than hoping it goes unnoticed. To negotiate the debt itself, go to the tax authorities or your professional.
Yes, if they come on as a borrower and the lender accepts the complete file. Their debts, credit, and obligations then enter the review too. It can help, and it can hurt. I compare the project alone and together, when that matches how you want to hold the property.
Major banks, credit unions, and specialized lenders each apply their own criteria, products, and terms. A logo does not mean that a mortgage will be offered or approved.
