Solutions · Complex & life stage
Your income is real. Let's present it that way.
Your tax return is optimized for taxes, not for lenders. Dividends, retained earnings, add-backs, multiple corporations, foreign income — each has lenders who read it properly and lenders who won't. Presenting the file correctly is usually the difference between declined and approved.
Reviewed by Stan Rashev, mortgage & real estate broker · Updated
The short answer
Self-employed borrowers in Québec usually qualify on a two-year average of the income on their tax returns, but lenders differ on add-backs, dividends and retained earnings — enough to change qualifying income by tens of thousands of dollars. Best Mortgage Montreal reads your personal and corporate statements together and matches you with the lender whose rules fit your business, from prime banks to alternative and stated-income programs.
01 Sounds like you?
This is for you if…
The same business can qualify for very different amounts depending on how its income is read. Our job is to find the lender whose method fits your file — and to build the file before it's submitted.
Talk it through- 01You're incorporated and pay yourself mostly in dividends.
- 02You've been self-employed for less than two years.
- 03A large part of your income is commission, bonus or variable.
- 04You own more than one company or property-holding entity.
- 05You're new to Canada with income or assets abroad.
03 Structures we'll compare
There's always more than one way to do it.
We'll put at least two or three of these side by side for your situation — with the real cost, the trade-offs and the fine print of each.
04 In depth
What to know before you decide.
Self-employed Canadians are often among the most financially capable borrowers a lender will see, yet among the most likely to be declined. The reason is almost always documentation and presentation, not ability to pay. Getting those right — and choosing a lender whose rules fit your business — changes the outcome.
Ask us about your situationHow lenders calculate self-employed income
Most prime lenders start with a two-year average of the income reported on your tax returns. From there, some allow eligible add-backs — such as capital cost allowance or business-use-of-home expenses — and some gross up certain non-taxable income. Others use a stated-income approach supported by business bank statements. The method a lender uses can move your qualifying income by tens of thousands of dollars, which is why lender selection matters more for business owners than for anyone else.
Incorporated owners: salary, dividends and retained earnings
If you are incorporated, how you pay yourself shapes how lenders see you. Salary is straightforward to document; dividends are usually accepted with corporate statements; income retained in the company is considered by some lenders and ignored by others. We read your corporate financial statements alongside your personal returns and present the full picture, so an underwriter sees the business as it really performs rather than the minimum you chose to pay yourself.
Preparing a year before you buy
The best time to plan a self-employed mortgage is before you file your taxes. A conversation between you, your accountant and us can balance tax efficiency against the income you will need to qualify. Keep personal and business accounts separate, file returns on time, keep balances with the CRA and Revenu Québec current, and avoid large new debts in the months before you apply. Small steps taken early widen your lender choice considerably.
05 Costs, timing & pitfalls
What it costs, how long it takes — and what to avoid.
What lenders will ask for
Expect your last two years of personal tax returns and notices of assessment from both the CRA and Revenu Québec, proof that taxes are paid, and business documents: articles of incorporation, the last two years of corporate financial statements, or business bank statements for stated-income programs. Commission and bonus earners usually provide a two-year earnings history. Having these ready before you shop cuts the approval time considerably.
Timing your application
Lenders look at the most recent two years, so the timing of your tax filing matters. A strong year that hasn't been filed yet may not count; a weaker year can drag down the average. If you're planning to buy, we often recommend talking to your accountant and us before year-end to decide whether a higher reported income, a different salary-dividend mix or simply waiting a few months would give you more lender options.
Mistakes self-employed borrowers make
Writing off so many expenses that reported income no longer supports the purchase, then discovering it at the pre-approval stage. Applying to several banks directly, which adds credit inquiries and leaves a trail of declines. Mixing personal and business accounts, which makes income hard to verify. And assuming a stated-income or alternative mortgage is permanent — with two clean filed years, many borrowers can move back to a prime lender at renewal.
Questions to ask before you sign
Ask each lender how it calculates your income: which years it uses, which add-backs it accepts, and whether it considers dividends or retained earnings. The answers can differ by tens of thousands of dollars of qualifying income. We already know these rules for 30+ lenders, so we can tell you in one conversation which ones will read your file properly.
06 An illustration
What it can look like, in numbers.
One Montréal consultant, two ways of reading the same business: $68,000 of taxable income on the T1, or $96,000 once eligible add-backs and grossed-up dividends are recognized.
Read from the T1 only
- Qualifying income
- $68,000
- Stress-test rate
- 6.34%
- Maximum mortgage
- $265,090
Read with add-backs
- Qualifying income
- $96,000
- Stress-test rate
- 6.34%
- Maximum mortgage
- $402,940
07 Run your own numbers
Mortgage Affordability Calculator
Estimate your maximum purchase price the way lenders do — with GDS/TDS ratios and the federal stress test — and see which limit is binding. Open full page
Your ratios at the stress-test rate
08 Good to know
Questions people ask before they call.
Can't find yours? Stan answers the phone himself more often than you'd expect.
(514) 994-1030Toll-free 1 855 777-1711 · by appointment in Saint-LaurentHow long do I need to be self-employed?
Prime lenders usually want two years of filed returns. Some programs work with less, especially if you were in the same field as an employee before.
What documents will I need?
Typically two years of Notices of Assessment and T1 Generals, financial statements if you're incorporated, articles of incorporation and recent business bank statements. We'll tell you exactly what your lender needs.
Will I pay a higher rate?
With a prime lender, no. With an alternative lender, yes — which is why we plan the move back to prime from day one.
Can retained earnings count?
Some lenders will consider income retained in your corporation. It's one of the areas where lender choice matters most.
Related guides
Read more before you decide.
09 Often combined with
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About the reviewer
Stan Rashev · Founder, mortgage & real estate broker
Stan Rashev has helped Montréal families, investors and business owners structure mortgages for 22 years. He works with more than 30 lenders, holds a master's degree in engineering, and serves clients in English, French, Russian and Bulgarian.
- Canada's Top 75 Mortgage Brokers, 2023
- #1 broker at Dominion Lending Centres Centre-West Montréal, three years running
- Top 5 broker at First National, Québec & Atlantic
- Desjardins Excellence Gala, 2025
Full profile LinkedIn How we review content
Mortgage brokerage in Québec is regulated by the Autorité des marchés financiers (AMF). You can check any broker's right to practise with the AMF. This page gives general information, not personalized financial advice; rules and rates change, and your options depend on your full file.
10 Start here
Request a confidential mortgage review.
Tell us what you're trying to solve. We'll come back within one business day with our read on the situation and the options worth considering — whether that's with us or not.
- A 30-minute conversation about your complete picture, not a rate quote
- No credit check to get started, and nothing to sign
- A minimum of 2–3 tailored options, explained in writing
- Your information is never shared with third parties
- Zero obligation or cost to you
Thank you — we're on it.
Stan or a member of the team will be in touch within one business day. If it's urgent, call (514) 994-1030.