How to Get a Mortgage Without Claiming More Income to CRA

May 11

How to Get a Mortgage Without Claiming More Income to CRA

Renee Huse, founder of Spire Mortgage Team in Calgary, Alberta, has helped hundreds of self-employed clients get approved without adjusting their tax returns or claiming extra income.

If you're a business owner keeping things lean with CRA, you don’t have to compromise your tax strategy just to qualify for a mortgage. There’s a smarter way to show your real income — and get approved.

Why Banks Want You to Pay More Tax

Most big banks follow a strict formula:

Two full years of consistent self-employed income
Taxable income shown on T1s and NOAs
Minimal flexibility for corporate accounts or retained earnings

If you’re incorporated and reporting a lower income to reduce taxes, a traditional bank may require you to:

Claim $100,000+ annually for two years
Pay $35,000–$70,000 in extra tax
Wait 24 months before applying

That strategy doesn’t work for most entrepreneurs — and it’s completely avoidable.

A Better Approach: Stated Income Mortgages with Alternative Lenders

For clients with at least 20% down, there’s a smarter approval path.

Alternative lenders use:

12 months of bank statements to verify income
Reasonable stated income based on your business type
Your credit score and net worth — not just your NOA

These programs are designed for contractors, consultants, incorporated professionals, and real estate investors who don’t fit into the bank’s box.

What You’ll Need to Qualify Without Increasing Income

✅ 20% Down Payment: Required to access most non-bank programs.
✅ Good Credit: 680+ is ideal to unlock better rates.
✅ 12 Months of Bank Statements: This is your proof of income.
✅ Stated Income Declaration: We help you align income with reality — not CRA numbers.

Real Calgary Client Success: $743K Gained Without Paying CRA More

In 2021, we helped a Calgary-based small business family invest in real estate — without showing high taxable income. Here's how they succeeded using our stated income approach.

The Setup:

3 suited properties at $350,000 each
20% down = $70,000 per property
Mortgages: $280,000 each at 6% interest
Monthly rent: $3,000 per property
Insurance: $200/month
Property taxes: ~0.61803% = ~$180/month
Lender setup fee: $2,800 per mortgage (1%)

Approval based on: 12 months of business bank statements and a stated income letter. No CRA income required.

4 Years Later:

📈 Gains

Property value increase: $175,000 per home → $525,000 total
Principal paid down across 3 properties: $155,055
Total rent collected: $432,000

💸 Costs

Total mortgage payments: $241,632
Total insurance: $28,800
Total property tax: $25,920
Lender fees: $8,400
Total costs: $304,752

📊 ROI Summary:

Total return: $432,000 (rent) + $155,055 (equity) + $525,000 (appreciation) = $1,112,055
Net profit after costs: $743,727
Total invested: $218,400
Return on Investment: 340% in 4 years

Who Should Consider This Strategy?

This mortgage option is ideal for Calgary clients who:

Are incorporated and pay themselves tax-efficiently
Have strong business bank statements
Can make a 20%+ down payment
Prefer to invest now rather than wait two years

We help real people make smart financing moves without compromising their business or tax efficiency.

Let’s Build a Mortgage Strategy That Works for You

You don’t need to change your income. You need a better plan.

Spire Mortgage – Trusted Calgary Mortgage Brokers for Over 20 Years

FAQs – Mortgages for Low CRA Income

Can I qualify for a mortgage if I don’t show high income to CRA?

Yes. With a 20% down payment and proof of business cash flow, many lenders will approve your mortgage based on stated income instead of tax returns.

How much more do stated income mortgages cost?

Rates are typically 1–2% higher than A-lenders, with a 1% setup fee. But this is often far less than the taxes you'd pay to qualify traditionally.

Are stated income mortgages legal and secure?

Yes. These are regulated, fully legal mortgage programs offered by reputable B-lenders for self-employed borrowers with real cash flow.

Can I buy a rental property with this strategy?

Absolutely. If you have 20% down and the property cash flows, you can qualify for an investment mortgage using stated income and bank statements.

Renee Huse

How to Get a Mortgage Without Claiming More Income to CRA