If you’re self-employed in the Greater Toronto Area, you already know the hustle. What you might not know is that qualifying for a mortgage looks a little different than it does for someone with a T4 and a steady paycheque.

Lenders want predictability. When your income fluctuates — or when you write off expenses to lower your taxable income — the numbers on your Notice of Assessment may not reflect what you actually earn. That gap is the core challenge, and it’s one we help self-employed clients navigate every week at KSD Mortgages.

What Lenders Are Looking For in 2026

Whether you’re a sole proprietor, incorporated, or running a partnership, lenders in the GTA generally want to see three things:

1. Proof of Income — Usually Two Years’ Worth

Most A-lenders (the big banks) ask for two years of T1 Generals, Notices of Assessment, and financial statements. They’ll average your net income over that period. If your declared income is low because of aggressive write-offs, your borrowing power drops — even if your bank account says otherwise.

2. A Strong Credit Profile

A credit score of 680+ opens the most doors with prime lenders. Below that, you’re looking at B-lenders or private options, which come with higher rates. Either way, clean up collections, keep credit utilization under 30%, and avoid new credit applications in the months before you apply.

3. A Healthy Down Payment

Self-employed buyers should aim for at least 10–20% down. A larger down payment not only reduces the mortgage amount but also signals to lenders that you’re financially stable. If you’re using a stated-income program (more on that below), 20% minimum is typically required.

Stated Income Programs: The Self-Employed Workaround

Here’s where things get interesting for self-employed borrowers in the GTA. If your taxable income doesn’t reflect your actual earnings, a stated income mortgage might be the right fit.

With a stated income program, you declare your income, and the lender verifies that it’s reasonable for your industry and role — without relying solely on your tax returns. These programs typically require:

• A minimum 20% down payment
• Good credit (usually 650+)
• Proof that the business is real and active (business licence, CRA registration, business bank statements)
• At least two years of self-employment history

Not every lender offers stated income mortgages, which is exactly why working with a mortgage broker who knows the self-employed landscape matters.

Documents You’ll Need to Gather

Start pulling these together before you even begin shopping for properties:

• Two most recent T1 Generals (personal tax returns)
• Two most recent Notices of Assessment (NOAs) from CRA
• T2 Corporate Tax Returns (2 most recent years)
• Corporate Notices of Assessment (NOAs) from CRA
• Articles of Incorporation (if applicable)
• Business financial statements (income statement, balance sheet)
• Business bank statements (3–6 months)
• Business licence or CRA business registration
• Proof of HST/GST registration (if applicable)
• Personal bank statements (3 months)
• Government-issued ID and proof of address

Having these ready speeds up the approval process and shows lenders you mean business — literally.

Common Mistakes Self-Employed Buyers Make

Over-writing off expenses right before applying. We get it — tax efficiency is smart business. But if you’re planning to buy in the next 12–18 months, talk to your accountant about balancing write-offs with the income you’ll need to declare for mortgage qualification.

Applying to the wrong lender. Not all banks are created equal when it comes to self-employed mortgages. Some have zero flexibility. A broker can match you to a lender whose policies actually work for your situation.

Waiting too long to start the process. Self-employed applications take longer to underwrite. Give yourself a head start — ideally 90+ days before you want to be making offers.

How a Mortgage Broker Makes the Difference

At KSD Mortgages, we work with self-employed clients across the GTA every day. We know which lenders are flexible, which stated income programs are currently available, and how to present your application in the strongest possible light.

We don’t just submit paperwork — we build your file strategically, matching your income profile to the right product and lender. That’s the difference between a declined application and getting the keys to your new home.

Ready to Get Started?

If you’re self-employed and thinking about buying a home in the GTA, the best time to start the conversation is now — not when you’ve found the perfect property and need an approval yesterday.

Book a free consultation with KSD Mortgages and let’s map out your path to homeownership.