Daycare Provider
Stated Income Mortgages for Daycare Providers
Licensed and home-based daycare providers
The short answer
Daycare providers can use a stated income mortgage to qualify on the revenue their childcare business collects, supported by bank deposits, parent payment records and a licence, rather than the low net income that remains after food, supplies and home-use deductions.
Why the usual approach undercounts you
- Home-use-of-home, food, supplies and vehicle deductions can cut reported net income sharply.
- Some families pay in cash or e-transfer, which needs to be documented clearly to count.
- Subsidy payments and private fees arrive from different sources, which can look inconsistent on a tax return.
What lenders ask for instead
- Childcare licence or registration where applicable
- 6–12 months of bank statements showing parent payments and subsidy deposits
- A simple income and expense summary for the business
- T1 General and Notice of Assessment for the last two years
- Photo ID
Required documents vary by lender and by file.
How the numbers usually change
A licensed home daycare running at capacity collects predictable monthly fees, but after deducting a portion of the home, groceries and program supplies the taxable figure can look like part-time income. Deposit-based review shows the actual collections, which is usually a much stronger basis for qualifying.
Not sure what your business income qualifies for?
Send a few details and we'll show you the number a self-employed lender would actually use.
Common questions
Does a home daycare affect my ability to buy the home I run it from?
It can be an advantage. The property is still owner-occupied, and the daycare income is what supports the application when it is documented properly.
Do subsidy payments count as income?
Government childcare subsidy deposits are generally treated as business revenue when they show consistently in your business banking.
Other occupations we work with
Ready to see what you qualify for?
Send your details and we'll review your business income the way a self-employed lender does — no credit pull to start the conversation.