Self-Employed Mortgage in Ontario: Rates, Requirements and Which Lenders Say Yes
Write-offs that save you tax cost you mortgage. Lenders in Ontario read business-for-self income very differently from one another, and which one reads yours generously decides the whole file.
Who a self employed mortgage in Ontario covers
- Sole proprietors, incorporated business owners and commissioned contractors
- Anyone whose line 15000 understates what the business actually earns
- Buyers turned down by a bank that would only look at two years of NOAs
What Ontario lenders look for
| Two years of T1 Generals and Notices of Assessment | The default at every A lender. They average line 15000 across two years and lend against that number. |
| Add-backs | Some lenders will add back capital cost allowance, business-use-of-home and one-time expenses. Others will not. This alone can move qualifying income by 20% or more. |
| Stated income | For borrowers who can show the business is real — bank statements, invoices, a GST return — without the tax return supporting the income. Priced above prime and usually capped at 80% loan-to-value. |
| Corporate add-back of retained earnings | If you leave money in the company, a handful of lenders will count a share of it. Most will not. |
Self-Employed mortgage rates in Ontario
Self-employed files that document income conventionally price on the normal shelves. Stated-income files sit on the uninsured shelf and typically run 50 to 150 basis points above the board.
What a typical purchase looks like
| Typical price | $759,000 |
| Minimum down payment | $50,900 |
| Land transfer tax | $11,655 |
Averaged across 10 Ontario markets we track. Calculate yours →
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Self-Employed mortgages across Ontario
Prices and property tax vary widely inside the province, and both feed your qualification.
| Market | Typical price | Minimum down | |
|---|---|---|---|
| Toronto | $1,058,658 | $80,866 | Affordability → |
| Mississauga | $1,014,120 | $76,412 | Affordability → |
| Brampton | $888,203 | $63,820 | Affordability → |
| Hamilton | $741,172 | $49,117 | Affordability → |
| Ottawa | $683,308 | $43,331 | Affordability → |
| London | $603,006 | $35,301 | Affordability → |
| Kitchener | $706,240 | $45,624 | Affordability → |
| Windsor | $530,000 | $28,000 | Affordability → |
| Oshawa | $693,677 | $44,368 | Affordability → |
| Barrie | $668,083 | $41,808 | Affordability → |
Self-Employed mortgage questions for Ontario
How long do I need to be self-employed?
Two years is the standard, evidenced by two Notices of Assessment. Some lenders will look at a shorter history if you were previously employed in the same field — moving from salaried electrician to incorporated electrician is a much easier story than a career change.
Can I get a mortgage on stated income?
Yes, though not from a big bank at a posted rate. Stated-income programs exist at several monolines and alternative lenders, usually needing 20% down, a clean credit history and evidence the business is genuine. Expect to pay for it in rate.
Do I need to stop writing off expenses?
Not permanently, but the two years before you buy matter. Reducing write-offs raises your reported income and your tax bill — worth modelling both, because the extra tax is sometimes cheaper than the worse mortgage.
What does it cost to close in Ontario?
Ontario land transfer tax on a $759,000 purchase comes to $11,655, due in cash on closing. Full Ontario closing costs →
Self-Employed in Ontario?
Send us the file and a licensed broker comes back with what is realistically available — which lenders will take it, at what rate, and what they will want to see.
