Two Common Mistakes Self-Employed People Make When Prepping for a Mortgage 

Being self-employed comes with a lot of flexibility, but it also means you need to plan ahead when it comes to getting a mortgage. Over the years, I’ve seen two mistakes pop up again and again that can really limit your options.

Writing Off Your Income Down to Zero

A big one is people writing off so many expenses that they end up claiming $0 as income. I get it—no one likes paying more tax than they have to.

But here’s the thing: in Canada, there’s a base amount of income that’s already tax-exempt. So there’s minimal advantage to claiming nothing at all.

Worse, when you show zero income on paper, you limit your mortgage options. Even just claiming a modest income gives us way more flexibility to find a solution that works.

Not Talking to a Mortgage Agent Before Filing Your Latest Tax Return

Your taxes matter—a lot. The income you claim for 2024 will be used for over three years when you’re qualifying for a mortgage.

That’s why it pays to talk to a mortgage agent before you hit “submit” on that return. We can review your numbers and see if there’s a smarter way to structure your income so you’re not shutting yourself out of better options down the line.

Self-employed? Want to make sure you’re on the right track for your next home purchase or refinance? Let’s chat!