$YourMortgageRenewalCalculator.com
Employment & income

Mortgage renewal when you're self-employed in Canada

Quick answer

If you're staying with your existing lender at renewal, no re-qualification is required — your bank must offer you a renewal regardless of current income. If you want to switch to a better rate, self-employed borrowers with 2 years of T1 Generals or NOAs qualify at A-lenders; newer businesses may need a stated-income program at 65–80% LTV.

What makes this different

  • Line 150 income on your NOA is usually lower than what you actually earn after write-offs.
  • Most A-lenders want 2 years of T1 Generals plus NOAs showing no taxes owing.
  • New businesses (under 2 years) are usually pushed to stated-income or alt-A programs at slightly higher rates.
  • GDS/TDS ratios often kill deals that would otherwise be fine — a broker can add-back business expenses at lenders that allow it.

How to approach your renewal

Start with your existing lender. Under the OSFI switch-exemption rules, staying put means no stress test and no re-qualification — even if your income dropped last year. Get their retention rate in writing first.

Then have a broker quote you at 3–5 self-employed-friendly A-lenders (Scotiabank, TD, First National, MCAP, RFA). If any of them beat your bank's offer by more than 0.15%, the switch usually pays for itself within 6–8 months even after legal/appraisal costs.

If your last 2 NOAs are low, ask about stated-income or business-for-self programs. Rates are typically 0.25–0.75% higher than fully-qualified A rates, but still cheaper than staying at a bad renewal offer.

Documents to prepare

  • Last 2 years of T1 Generals (all pages)
  • Last 2 years of Notices of Assessment (NOAs) with no taxes owing
  • Articles of incorporation or business licence
  • 6 months of business bank statements
  • Current mortgage statement and property tax bill
Want Jay Klair to run your numbers for this situation?
Free, no-obligation review from a FSRA-licensed mortgage agent.
Get free review 416-669-2144

FAQ

Do I have to re-qualify if I stay with my current lender?

No. A straight renewal with your existing lender does not require re-qualification or the stress test. This is the single biggest lever self-employed borrowers have — use it as leverage.

Can I switch lenders without the stress test as self-employed?

Yes, since November 2024. Uninsured borrowers switching at renewal are exempt from the MQR stress test, even if you're self-employed. You still need to prove income at contract rate qualification.

Will a B-lender renewal hurt me?

Only if you stay there forever. B-lenders are a bridge — the goal is always to move to an A-lender at the next renewal once you have 2 clean years of NOAs.

Jay Klair, Mortgage Agent Level 2 (M09000869) — Real Mortgage Associates, FSRA #10464, part of the DLGC Group of Companies · 5675 Whittle Rd, Suite 100, Mississauga, ON L4Z 3P8