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Self-employed and reporting little income: can you refinance?

You work for yourself and report little income? What lenders ask for, the programs that exist and what they can cost you in return.

By David Ponce, mortgage broker

Reading time: 2 minPublished on October 19, 2026

A self-employed woman sorts receipts into folders at her home office desk, next to her laptop.

In brief

It’s possible in some cases: in our experience as a broker, some banks have programs that look at your business revenue rather than only your personal tax returns. Expect to provide more documents. Income that’s hard to verify is treated with caution, which can lower the possible amount or make the terms less favourable.

The number to remember

2 years

Notices of assessment for the last 2 years: that’s what the lender may ask for to prove your self-employed income.1

How does it work?

Here’s what the lender looks at, and what you can get ready.

  1. Your reported income

    The lender has to verify your income rigorously. For a self-employed person, it asks for proof of income, such as the notice of assessment and the T1 General return, and documents about the business.3

  2. Your business documents

    Depending on the case: Goods and Services Tax (GST) returns, business account statements, financial statements, a business licence or articles of incorporation. The list is adapted to your situation.5 4

  3. Programs based on business revenue

    In our experience as a broker, if your business generates revenue but you pay yourself a small salary for tax reasons, some banks have programs that can assess your file based on the business’s revenue.2

  4. Income treated with caution

    Income that can’t be verified is treated with caution, and temporarily high income can be brought back to normal. A loan whose income hasn’t been verified enough may be judged non-conforming: at banks and credit unions, it may then be capped at 65% of the home’s value.4 3

A self-employed carpenter in a work apron reads over an invoice in his workshop set up in the garage.

Gather your documents early: the timeline depends a lot on how quickly you provide them.

Example

Made-up example

What poorly documented income changes

Karim is a self-employed electrician. His home is worth $360,000, he owes $190,000 on his mortgage and wants to combine $38,000 in debt.

Value of the home$360,000
Mortgage balance$190,000
Usual 80% ceiling ($360,000 × 80%)$288,000
65% ceiling if the lender judges the loan non-conforming, for lack of verified income ($360,000 × 65%)$234,000
Amount available at 65%$44,000

At 80%, $98,000 would be left: $288,000 minus $190,000.

At 65%, his $38,000 in debt still fits, but there’s little room left for the refinance costs.

Documenting your income well can change the possible amount.

Made-up example, to show the calculation. The actual ceiling and terms depend on the lender, the program and your file.

What are the downsides, and when isn’t it the right option?

  • Programs for self-employed people can come with a rate or terms that are less favourable. Ask to compare.
  • If the lender judges the loan non-conforming because the income is poorly verified, at banks and credit unions the loan may be capped at 65% of the home’s value.
  • A new business or very uneven income makes approval harder: temporarily high income may not be counted.
  • Only put income you can prove in your application: the lender has to verify it rigorously.6 3 4

Frequently asked questions

Can a self-employed person refinance a home?

It’s possible in some cases: in our experience as a broker, some banks have programs that look at your business revenue rather than only your personal tax returns. Expect to provide more documents.

What documents do you need when you are self-employed?

The lender asks for proof of income, such as the notice of assessment and the T1 General return, and documents about the business. Depending on the case: GST returns, business account statements, financial statements, a business licence or articles of incorporation. The list is adapted to your situation.

Where can you find your notices of assessment?

In your online account with the Canada Revenue Agency for the federal one, and in My Account (Mon dossier) at Revenu Québec for the provincial one. The CRA also offers a “Proof of income” statement, useful for a loan application.

Related questions

The other guides, and our short answers to frequently asked questions.

Sources

  1. Financial Consumer Agency of Canada (FCAC), “Getting preapproved for a mortgage” (opens in a new tab), consulted on September 25, 2026.
  2. ZenFi, “Frequently asked questions” (opens in a new tab), consulted on September 25, 2026.
  3. Office of the Superintendent of Financial Institutions (OSFI), “Residential mortgage underwriting practices and procedures: Guideline (2017)” (opens in a new tab), consulted on September 25, 2026.
  4. Autorité des marchés financiers (AMF), “Ligne directrice sur l’octroi de prêts hypothécaires résidentiels” (opens in a new tab) (in French), consulted on September 25, 2026.
  5. Canada Mortgage and Housing Corporation (CMHC), “CMHC Self-Employed” (opens in a new tab), consulted on September 25, 2026.
  6. FCAC, “Interest on mortgages” (opens in a new tab), consulted on September 25, 2026.
  7. Canada Revenue Agency, “Notices of assessment (NOA) or notices of reassessment (NOR)” (opens in a new tab), consulted on September 25, 2026.
  8. Canada Revenue Agency, “Get a proof of income statement” (opens in a new tab), consulted on September 25, 2026.
  9. Revenu Québec, “Mon dossier pour les citoyens” (opens in a new tab) (in French), consulted on September 25, 2026.

Sources checked on September 25, 2026. The examples illustrate a calculation; they don’t promise a result.

This guide gives general information, not advice tailored to your situation. Terms vary from one lender and one file to the next.

This guide is a translation of the French version, which is the reference text.

Groupe ZenFi (9498-0356 Québec inc.), a Quebec mortgage brokerage firm registered with the Autorité des marchés financiers (AMF), client number 3003043028.

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