Can you get a mortgage in Ontario with self-employed, seasonal or contract income? Yes. Your income isn’t the problem. The problem is usually how it’s shown on paper and which lender is reading it. I’m Lora Fenn, a Barrie mortgage agent, and I’ve lived this one myself.
My own story
I had a stable government job, the kind banks love. Then I lost it. I went back to seasonal ski coaching contracts, and with a mortgage renewal coming, I was scared. I assumed my options had disappeared along with the steady paycheque. They hadn’t. There were far more lenders and ways to show income than I knew. That experience is a big reason I focus on people whose income doesn’t look like a T4 salary.
Why banks struggle with this kind of income
- Write-offs. Smart tax planning lowers your net income, and net income is what many banks use to qualify you. More in why business write-offs make qualifying harder.
- Short history. Many banks want two full years of self-employed or seasonal income.
- Uneven months. A ski instructor, landscaper, marina worker or contractor can earn most of the year’s income in a few months.
- Several sources. Contracts, part-time work, EI between seasons and side income don’t fit a simple box.
How lenders can read your income
Most lenders average your last two years of income from your Notices of Assessment. For seasonal workers, a consistent history of returning to the same kind of work each season helps a lot, and some lenders will consider EI between seasons when the pattern is steady. For self-employed people, some lenders use programs that look at your business revenue or bank deposits rather than just the bottom line on your tax return, often with a larger down payment or more equity. Alternative lenders can be more flexible again, including with newer businesses. Timing matters too. Applying with only your slow-season statements can make a healthy year look weak.
Around here that covers a lot of people: ski and snowboard staff at Blue Mountain and Horseshoe, trades and construction across Simcoe County, marina and resort workers in Muskoka, and business owners in Collingwood and Oro-Medonte.
What to have ready
- Two years of T1 Generals and Notices of Assessment, with taxes paid up.
- Recent contracts, a client list, or proof the next season is booked.
- Twelve months of business and personal bank statements.
- Business registration or articles of incorporation, if you have them.
- A short note explaining any dip or change, and what has replaced it.
You can also fill out my self-employed mortgage questionnaire before we talk, or read the overview on self-employed mortgages and how self-employed people qualify in Ontario.
Self-employed and seasonal income questions
How do lenders calculate seasonal income for a mortgage?
Most lenders average your last two years of income from your Notices of Assessment, and they want to see that you return to similar work each season. Some also count regular EI between seasons if the pattern is consistent. A job letter or contract for the coming season helps.
Can I get a mortgage if I’ve been self-employed less than two years?
Sometimes, yes. If you stayed in the same line of work before going on your own, some lenders will consider a shorter history, and alternative lenders can be more flexible, often with a larger down payment or more equity.
Why did the bank say no when I make good money?
Usually because the bank qualifies you on net income after write-offs, not what you really earn and live on. Other lenders and programs can look at your income differently, so the same person can qualify somewhere else.
Can contract workers get a mortgage in Ontario?
Yes. Lenders look for a track record in your field, often two years, plus current contracts. If you’ve moved from salaried work to contract work in the same field, many lenders will consider that continuity.
Should I apply in my busy season or slow season?
Ideally once your latest tax year is filed and assessed, with a full year of statements that show your real pattern. Talk to a mortgage agent early so the timing works for you and not against you.
Related help
- Bank said no? Start here: mortgage help by situation
- Mortgage help after separation or divorce (single parents too)
- Mortgage with bad credit in Barrie and Simcoe
- Debt consolidation when the bank says no
- Mortgage renewal after a job loss or income change
Let’s find another path
The first chat is free, it is private, and there is no pressure. Tell me what happened and what you want your life to look like. Life first. Mortgage second.
Book a free 15 minute chat | Call or text 705-881-2780 | lfenn@dominionlending.ca
Office: 18 Alliance Boulevard, Unit 4, Barrie, ON L4M 5A5. Serving Barrie, Simcoe County, Oro-Medonte, Collingwood, Muskoka and homeowners across Ontario.
General education, not financial advice. Every file is different and all mortgages are subject to lender approval (O.A.C.). Lora Fenn, Mortgage Agent Level 1, DLC Yellow Brick Mortgages, Brokerage Licence #13854.
