Self-employed mortgage calculator for Canadian business owners

Why self-employed mortgage affordability is different

Most mortgage affordability tools online are built for people with one predictable T4 salary. If you're self-employed, lenders look at you differently:

• Your income often fluctuates from year to year.
• You may write off expenses to reduce taxable income.
• Money can be left in the corporation instead of paid out as salary or dividends.
• You might have multiple income streams: contracts, retainers, professional corporations, side businesses.

Because of that, the amount you qualify for can be very different from what a regular "9-to-5" calculator shows.

Lenders still need to make sure your mortgage fits within standard Canadian guidelines, including:

• Debt service ratios (GDS and TDS)
• The mortgage stress test, where you must qualify at a higher "test rate" than your actual contract rate

This calculator gives you a self-employed-friendly estimate within those rules so you can plan with more confidence.

How this self-employed mortgage calculator works

Instead of only asking, "What's your salary?", this calculator lets you mix different income sources the way lenders often do when underwriting self-employed mortgages in Canada. Depending on which inputs you use, it may consider:

• T1 General / NOA income for sole proprietors and professionals
• T4 salary & dividend income for incorporated business owners
• Business add-backs such as non-cash expenses or one-time write-offs some lenders may add back to income
• Corporate net income or retained earnings, where applicable and acceptable to certain lenders
• Bank-statement style income, using business deposits to approximate what "business-for-self" or alternative lenders might allow

Behind the scenes, the calculator then:

1. Combines your income sources into an estimated "qualifying income."
2. Applies typical Canadian GDS/TDS and stress-test rules in the background.
3. Produces an estimated maximum mortgage amount and home price that might work, assuming reasonable property taxes, utilities, and other housing costs.

It's not a mortgage approval, and actual lenders may see your file differently—especially if you use more advanced programs. But it should give you a much more realistic starting point than a standard mortgage calculator built for salaried employees.

Who this self-employed mortgage calculator is for

This calculator is made for self-employed borrowers in Canada who:

• Own an incorporated business and pay themselves salary and/or dividends
• Operate as sole proprietors or independent professionals (with a T2125 statement of business or professional activities)
• Have variable income, seasonal revenue, or heavy write-offs
• Are looking at first-time purchases, move-up homes, refinances/equity take-outs, or rental properties (where lender guidelines allow)

If you earn mainly T4 salary without business income, a standard mortgage affordability calculator is usually enough. If you're truly self-employed or business-for-self, this one is built for you.

What lenders really look at when you're self-employed

Behind the scenes, most lenders and insurers focus on a few key areas when approving a self-employed mortgage in Canada:

1. Time in business

Many programs want you self-employed for at least 2 years, or with 2–3 years of tax history in the same line of work. Some insurer and alternative-lender programs can be more flexible, especially if you were previously employed in the same field.

2. Documentation and proof of income

Depending on the program, lenders may ask for:

• 2–3 years of T1 Generals and Notices of Assessment (NOAs)
• T2125 statements for sole proprietors and professionals
• Corporate financial statements
• 6–24 months of business bank statements for bank-statement or "stated income" style programs
• Proof of down payment and savings

The calculator doesn't collect these documents—it just helps you translate your numbers into an estimated qualifying income the way lenders might.

3. Credit score and debt

Even with strong income, lenders still look closely at your credit score and payment history, credit card and line-of-credit balances, car and student loans, and any business debt you've personally guaranteed.

Lower debt levels and a strong credit profile generally help you access better rates and larger mortgage amounts.

4. Down payment and type of lender

For self-employed borrowers, the down payment and lender type often go hand-in-hand:

• Traditional "A" lenders and banks usually prefer full-doc files with 2–3 years of consistent taxable income.
• Insured and alternative self-employed programs may allow more flexible income treatment in exchange for larger down payments, stronger credit, or a higher rate.

This calculator doesn't replace a professional review, but it gives you a clearer view of your numbers before you speak with a broker or lender.

5 ways to improve how much mortgage you can qualify for

Use your results from the calculator as a baseline, then consider these strategies to potentially improve your borrowing power:

1. Tidy up your business and personal debt

Pay down high-interest credit cards and lines of credit, avoid taking on new loans or large leases right before you apply, and keep your total debt service (TDS) ratio within typical lender guidelines. Lower monthly payments can make a surprisingly big difference in the mortgage amount you qualify for.

2. Plan your taxable income with mortgages in mind

Writing off every possible expense may lower your tax bill, but it can also shrink the income lenders see. If you know you'll want a mortgage in the next 1–2 years, talk to your accountant about increasing your declared income, adjusting your mix of salary vs dividends, and timing big write-offs more strategically.

3. Strengthen your credit

Before you apply, make all payments on time for at least 6–12 months, reduce utilization on revolving credit, and avoid opening a bunch of new accounts at once. A stronger credit profile can open the door to better self-employed mortgage products and rates.

4. Build a stronger down payment and cash cushion

A bigger down payment can help you qualify with more flexible self-employed programs, reduce the size of your mortgage and monthly payment, and make you look like a lower-risk borrower. Even after closing, extra savings for business slowdowns, taxes, and repairs makes homeownership less stressful when your income isn't guaranteed.

5. Organize your documents early

Before you speak with a lender or broker, gather 2–3 years of T1s and NOAs, corporate financial statements, 6–24 months of business bank statements (if applicable), and proof of down payment. Being organized can make the process faster and smoother and may even broaden the lender options available to you.

Next steps after using the self-employed mortgage calculator

1. Run a few scenarios by trying different income mixes (salary vs dividends, add-backs, bank-statement style income) to see how they affect your maximum mortgage.
2. Compare the results to your real budget. Just because you can qualify for a certain amount doesn't mean you should borrow it—make sure your mortgage fits alongside your business cash flow, taxes, family expenses, and savings goals.
3. Talk to a self-employed mortgage specialist. Bring your calculator results and documents to a mortgage professional who regularly works with entrepreneurs and business owners in Canada so they can match your profile to lenders and programs that may fit you best.