Standard calculators assume T4 income. Here's what changes when you're self-employed.
01 — Income
Your qualifying income is not your gross revenue
Lenders typically use a 2-year average of your net business income from line 15000 of your NOA — not your invoices. Write-offs that reduce your taxes also reduce your qualifying income.
02 — Down Payment
20% down removes CMHC — and unlocks more lenders
Self-employed borrowers with less than 20% down face stricter CMHC documentation rules. Getting to 20% opens the door to B-lenders and better rates even with non-traditional income.
03 — Stress Test
You must qualify at 2% above your actual rate
The federal stress test (B-20) requires you to prove you can afford payments at your rate plus 2% (or 5.25%, whichever is higher). Plan for it before you start house hunting.