Tell us how you earn. We'll show you how to own.
Salaried, self-employed, driving Uber at night, on pension, or a mix of everything — real life isn't "perfect" on paper. This guide walks you through how lenders see your income and what that means for your minimum down payment.
How Lenders Sort Your Income
Every mortgage application comes down to two questions: How much do you earn? and How reliable is it? Lenders don't just take your word for it — they verify, average, and sometimes discount your income depending on how it's earned. Here's how each income type works.
Employed (Full-time / Part-time)
If you're on payroll with a steady job letter and paystubs, lenders are usually very comfortable. We'll lean on your base salary or average hours. In most cases you can get in with 5% on the first $500,000 and 10% on the amount above that, up to $1,499,999.
Documents needed: Job letter, 2 recent paystubs, and sometimes your T4.
Minimum down payment: 5% – 10%
Self-Employed
If you run your own business, you're not alone. We can use your tax returns, or with the right program we can use your bank deposits to show your true income. Most self-employed programs want 10% to 20% down, depending on how your income looks on paper.
Documents needed: 2 years T1s & NOAs, or bank statements for stated income programs.
Minimum down payment: 10% – 20%
Commission Income
Commission income goes up and down, so lenders like to average the last 2 years and see that you're trending in the right direction. Some files still work with 5% down, others fit better in a 20% down program. That's where structuring it properly matters.
Documents needed: 2 years T1s, NOAs, plus your current year-to-date summary.
Minimum down payment: 5% – 20%
Pension / Fixed Income
Pension, CPP, and OAS are predictable and steady — which lenders love. As long as we can show the income is ongoing, many buyers in retirement or near retirement can still move with as little as 5% down on an owner-occupied home.
Documents needed: Pension, CPP, OAS letters and T4A slips showing what you receive.
Minimum down payment: 5%
Foreign Income / Non-Resident
With foreign income or non-resident status, lenders want larger down payments and very clean documentation. Think 35%+ down and strong credit. If we set it up properly, it's still possible — it just lives in a more specialized lane.
Documents needed: Employment letter, 90 days bank statements, and foreign credit if available.
Minimum down payment: 35%+
Gig / Contract / Rideshare
If you're driving, delivering, or freelancing, your bank statements tell the real story. We'll pull 6–12 months of deposit history and line that up with the right lender. Expect at least 20% down and a closer look at your cash flow.
Documents needed: 12 months bank statements and platform income reports (Uber, DoorDash, etc.).
Minimum down payment: 20%
Rental-Focused Buyer
For buyers focused on rentals, the lender looks at today's income and future rent from the property you're buying. Rental purchases generally need at least 20% down, plus a good handle on your overall debts and existing properties.
Documents needed: Lease agreements, rental worksheets, and T1/T776 where it applies.
Minimum down payment: 20%+
Down Payment Sources That Lenders Accept
Where your down payment comes from matters just as much as how much you have. Lenders will ask you to prove the source of every dollar. Here are the most common accepted sources:
- Personal savings — 90-day bank history showing the funds building up
- Gift from immediate family — A signed gift letter stating it's non-repayable
- RRSP Home Buyers' Plan — Up to $35,000 per person, tax-free withdrawal for first-time buyers
- First Home Savings Account (FHSA) — Up to $40,000 lifetime, tax-deductible contributions
- Proceeds from sale of another property — Confirmation of sale and net proceeds
- Borrowed down payment — Only if from a line of credit secured against another asset (counts as a liability)
The Down Payment Rules at a Glance
Canada's federal mortgage rules set out minimum down payment requirements based on the purchase price:
- Under $500,000: Minimum 5%
- $500,000 – $999,999: 5% on first $500K + 10% on the remainder
- $1,000,000 and over: Minimum 20% (no CMHC insurance available)
Anything under 20% requires CMHC mortgage default insurance, which is added to your mortgage balance. The premium ranges from 2.8% to 4% of the insured amount.
What Happens After You Choose Your Income Type?
Once we understand how you earn and what you have saved, we build a clear plan:
- Pre-qualification — We review your income, debts, and down payment to estimate your range
- Document collection — We'll tell you exactly what's needed based on your file
- Lender matching — We shop 30+ lenders to find the best fit for your situation
- Rate hold — We lock in your rate for 90–120 days while you shop
- Pre-approval letter — You go shopping with confidence
FAQs
How much down payment do I need to buy a home in Ontario?
For most owner-occupied homes under $1,000,000, the general rule is 5% on the first $500,000 and 10% on the portion above that. For homes priced at $1M+, the minimum down payment is 20%.
Can I buy a home if I am self-employed or on contract?
Yes. Self-employed and contract buyers can qualify using tax returns, bank deposits, or specialized programs. They may need 10% to 20% down depending on the structure.
Does a gift count as a down payment?
Yes, a gift from an immediate family member is accepted by most lenders with a signed gift letter confirming the funds are non-repayable. Some lenders require a portion of the down payment to come from your own savings depending on the purchase price.
