How Your Accountant Could Be Costing You Your Real Estate Deal in Alberta

Written By Renee Huse

Renee Huse, founder of Spire Mortgage Team in Alberta, has helped hundreds of entrepreneurs—from Calgary consultants to Red Deer tradespeople—navigate the unique challenge of qualifying for real estate financing. And one pattern shows up again and again: a smart tax strategy in April could sabotage your mortgage approval in July.

Let’s break down why showing more income (yes, even if it means paying a little more tax) might be the smartest move you make for your financial future.

Why Your Income on Paper Matters to Lenders

Triple A lenders, think major banks and credit unions—love predictability. If you want their best mortgage rates and terms, they need to see consistent, taxable income.

As a self-employed Albertan, your net income (after deductions) is what lenders care about. If your accountant is a wizard at writing off vehicles, phones, meals, and travel, great! But if you’re showing only $25K of net income a year, you’ll struggle to get a mortgage—regardless of what you actually earn.

Most lenders want to see:

  • Two years of personal Notice of Assessments (NOAs)
  • Consistent or increasing income trends
  • Net income that supports the mortgage you’re applying for

When It Makes Sense to “Show” More Income

No one wants to pay more tax than they have to. But there’s a difference between tax avoidance and long-term strategy.

Here’s when it’s smart to dial back deductions:

  • You’re 6–12 months from a real estate purchase or refinance
  • You want access to the lowest rates (e.g., 3.99% on insured mortgages)
  • You need a higher qualifying income to boost your purchase power
  • You want to avoid private or B-lender rates (often 1–2% higher)

After you’ve secured the property and mortgage, you can pivot back to aggressive write-offs. But for now? The ROI of showing higher income could be huge.

We’re Not Anti-Accountant — We’re Team Strategy

Let’s be clear: accountants are essential. Their job is to minimize your tax burden, protect your books, and keep you compliant. Ours is to maximize your borrowing power and get you into the best mortgage product possible.

At Spire, we don’t want to work around your accountant — we want to work with them. When we align early in the process, we can structure your income and deductions in a way that supports both your tax and real estate goals.

We’ve collaborated with accountants across Alberta — from Edmonton to Grande Prairie — to help clients find the right balance between paying the least amount of tax and qualifying for the most mortgage. It’s not about who’s right; it’s about what’s right for your bigger financial picture.

Case Study: How Cam from Lethbridge Leveraged a Strategic Tax Year

Cam owns a mobile welding business in Lethbridge. In 2022, his accountant did an incredible job—on paper, Cam made $28,000 after expenses. In reality? He cleared $110,000.

Cam was pre-approved through a private lender at 7.2%, with 25% down and tough terms. He came to Spire for a second opinion.

Here’s what we advised:

  • File 2023 with fewer deductions, showing $90,000 in net income
  • Submit both years’ NOAs and T1 Generals to triple A lenders
  • Use those documents to secure a 5-year fixed mortgage at 4.34%

Purchase Price: $550,000 in Lethbridge
Down Payment: $110,000 (20%)
Mortgage: $440,000 at 4.34% over 25 years
Monthly Payment: $2,406
Private option would’ve cost: $3,166/month — a $760/month savings

Glossary of Key Terms

  • Net Income – Your income after deductions, the number lenders use to assess your mortgage capacity.
  • NOA (Notice of Assessment) – A summary from CRA confirming your filed income and taxes owed/paid.
  • Triple A Lender – A major bank or top-tier lender offering the best rates and terms.
  • B Lender – A lender that offers mortgages to people with lower credit or unconventional income; typically higher rates.
  • Conventional Mortgage – A mortgage with 20% or more down, not requiring mortgage default insurance.
  • Insured Mortgage – A mortgage with less than 20% down, backed by CMHC or similar; currently offers rates as low as 3.99%.
  • Gross-Up – A lender technique of inflating self-employed income by 15% or more to account for non-taxed income.
  • T1 General – The full income tax return form, often required by lenders for self-employed borrowers.
  • Debt Service Ratios – Financial formulas lenders use to assess your ability to handle mortgage payments.
  • Stated Income Program – A niche lending option where income is declared and verified differently, available in limited cases.

FAQs About Mortgages for Small Business Owners in Alberta

Do I really have to show two full years of high income?
Not always. Some Triple A lenders will consider just your most recent year if it’s strong and well-documented.

Can I still qualify if I have big write-offs?
Yes, but it may limit you to B-lenders or private options, often with higher rates and fees.

What if I just incorporated?
You’ll need at least two years of operating history in most cases. There are exceptions—talk to us early.

Should I talk to my accountant before I file?
Absolutely. And include your mortgage broker in that conversation. At Spire, we’ll even coordinate it for you.

Can I amend last year’s taxes to show more income?
Yes, but it’s complex and must be done carefully with a tax professional and your broker’s guidance.

Give us a call or fill out an application at this link: https://spiremortgage.ca/apply-now and our team will get in touch with you to start building a plan that suits you.

Renee Huse
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