How a Mortgage for Incorporated Business Owners Actually Works

When you’re incorporated, lenders don’t just look at a paystub and call it a day. Instead, they want to understand how you pay yourself and how healthy your business is.

Most lenders will look at:

• Your T1 personal tax returns

• Your T4 income (if you pay yourself a salary)

• Your dividends (if you pay yourself that way)

• Sometimes, your corporate financials

This is where a mortgage for incorporated business owners starts to differ from a regular mortgage—income verification matters a lot more.

Salary vs Dividends: Why It Matters

If you pay yourself a salary, lenders love you a little more (not personal, just policy 😅). Salary income is predictable and easy to verify.

Dividends? Still usable—but some lenders:

• Average them over 2 years

• Discount the income slightly

• Ask for extra documentation

Neither option is “wrong,” but it can affect how strong your application looks for a mortgage for incorporated business owners.

How Lenders View Retained Earnings

Here’s a big one most business owners don’t realize.

If you leave money inside your corporation (retained earnings), some lenders can count that as income, while others won’t touch it at all.

This is where strategy matters. With the right lender and structure, retained earnings can help you qualify—especially if your personal income looks low on paper.

A good broker will know which lenders are flexible here and how to position your file properly.

Common Mistakes Incorporated Business Owners Make

Before applying, avoid these common pitfalls:

• Writing off everything (great for taxes, not great for mortgages)

• Applying at a big bank without a strategy

• Assuming you won’t qualify and not exploring options

• Waiting until the last minute before renewal or purchase

Planning even 6–12 months ahead can dramatically improve your chances.

The Bottom Line

Yes—incorporated business owners can absolutely qualify for a mortgage.

You just need:

• The right lender

• The right income structure

• And the right strategy

If you’re incorporated and thinking about buying, refinancing, or renewing, it’s worth having a conversation before you apply. A properly structured mortgage for incorporated business owners can save you time, stress, and a lot of money.