Ontario
The largest income gap in the country meets the highest prices.
The short answer
In Toronto, a stated income mortgage qualifies self-employed borrowers on documented business revenue rather than the net taxable income on a T1. At GTA price levels, using real business income instead of the after-write-off figure often changes the approval by six figures.
The stress test applied to a write-off-reduced income routinely produces an approval far below the market entry point. Documented revenue closes that gap.
Toronto has the widest range of self-employed programs, and each lender treats add-backs, corporate income and rental offsets differently. Placement decides the rate.
For condo purchases the lender examines the status certificate and reserve fund alongside the income documentation.
Documented revenue is totalled, a reasonable industry expense factor is deducted, and the resulting qualifying income is tested against debt-service limits at the stress test rate. See the full step-by-step breakdown for the numbers.
Illustrative case studies
Incorporated renovation contractor, 6 years in business
A Toronto buyer with strong credit, a 20% down payment and two years of filed returns showing heavy but legitimate write-offs.
How the income is calculated
Roughly $559,776 in mortgage capacity on stated income, versus about $255,192 on the net figure alone.
Commission-only realtor, 4 years licensed
A Toronto buyer with strong credit, a 20% down payment and two years of filed returns showing heavy but legitimate write-offs.
How the income is calculated
Roughly $588,588 in mortgage capacity on stated income, versus about $292,236 on the net figure alone.
Sole-proprietor IT consultant on long-term contracts
A Toronto buyer with strong credit, a 20% down payment and two years of filed returns showing heavy but legitimate write-offs.
How the income is calculated
Roughly $561,834 in mortgage capacity on stated income, versus about $238,728 on the net figure alone.
For demonstration purposes only. These case studies are hypothetical examples created to show how stated income calculations work. They are not real clients, not guarantees, and not an offer of credit. Actual qualifying income, rates and approvals depend on the lender, your documentation, credit profile, down payment and the property.
Yes. T2 filings, corporate financial statements and shareholder draws are accepted, and retained earnings can often be added back.
Above the $1M purchase threshold, insured financing is unavailable, so 20% is the effective minimum for most GTA purchases.
Send your details and we'll review your business income the way a self-employed lender does — no credit pull to start the conversation.