What non-traditional income sources count toward your mortgage application?
Using more than your salary can help you qualify to buy a home, or buy more home.
Income can come from many places, and many Canadians have more than one source of income. So, it makes sense that your mortgage approval isn’t always limited to your job paycheque.
You can often qualify with additional, non-traditional income streams, from government benefits to rental income to side hustles.
Depending on your situation, lenders may count these extra sources toward your application, provided the income is stable and adequately documented. An expert broker knows which lenders accept what — and how to position your details for your best mortgage fit and rate.
Do you have an income source you're not sure about? Read on.
A 'non-traditional' income source means any income that isn't a regular paycheque (salaried or hourly job) from a company, for which you're an employee.
It can't be just casual lemonade-stand-on-your-front-lawn earnings — unless you're reporting it. The non-traditional income must be stable, verifiable, and likely to continue — usually backed by tax returns, legal agreements, or official benefit statements.
Here are some sources that lenders may allow for your application.
Private or employer pensions (workplace retirement plans, RRIF withdrawals) and private long-term disability payments. Some provincial benefits may have also be applicable.
What’s needed: T4A/T4RIF slip, pension or disability statement, NOA (Notice of Assessment), and 1-3 months of bank deposit history (depending on pension source).
Canada Child Benefit (CCB), CPP, OAS, and government-issued disability payments.
What’s needed: CRA (Canada Revenue Agency) benefit notice (e.g. CCB notice), recent T-slips, and proof that benefits will continue for a time.
Spousal or child support may qualify if it’s ongoing.
What’s needed: Court order or separation agreement, plus 3–6 months of bank deposit history.
Income from a self-contained suite in your home (e.g. including kitchen, bathroom, and separate entrance), or from a rental property, can often be used to strengthen your application — with some lenders allowing part or all of the income to be counted.
Long-term boarder income (e.g. someone who rents a room in your home vs. a suite) is treated differently, and may not be allowed by some lenders.
What’s needed for rental income: Lease agreement or appraiser market rent letter, plus tax returns (T1 General) if the income is from another property.
Dividends, interest, or trust distributions can be used if they’re consistent, used as direct income, and reported on your tax return — versus being collected in a registered savings vehicle (e.g. RRSP).
What’s needed: T5/T3 slips, recent investment statements, or trust documents.
Earnings from outside Canada can be included if declared and taxed in Canada and come from a stable, ongoing job or contract with verifiable proof. The income will be converted to Canadian dollars at the current exchange rate.
What’s needed: Canadian NOAs with T1 Generals, plus foreign pay stubs or employer letters.
Freelance, gig work (like working as an Uber driver), or seasonal jobs may qualify if declared consistently.
What’s needed: Two years of tax returns (NOAs and T1 Generals), averaged for stability.
When it comes to mortgages, lenders don’t just want to see extra income — they need to see that it’s reliable. That’s why proof is everything.
Whether it’s a CRA notice for your Canada Child Benefit, a lease agreement for rental income, or two years of tax returns for side-hustle earnings, documentation shows lenders the money is steady and ongoing.
The rules can vary widely between lenders and insurers, and knowing what will count (and how to present it) can make all the difference in your approval.
Not every lender views non-traditional income the same way. Some may allow 100% of your rental income, while others only use half. One lender may count your Canada Child Benefit, while another won’t. That’s where an expert mortgage broker makes the difference.
A skilled True North broker knows which lenders are open to different income types — and how to present your documents so they carry the most weight. From averaging two years of side-hustle earnings to highlighting steady pension deposits, brokers frame your income story in a way that fits lender policy.
The result? A stronger mortgage application, less back-and-forth, and a better chance of qualifying for the right mortgage for your situation.
Yes — but how it’s treated depends on whether you add a co-signer or a guarantor.
In both cases, lenders will review the guarantor or co-signer’s credit, income, and debts to make sure they can support the application. An expert broker can help you determine which option strengthens your approval, depending on the lender.
Read more: What's the difference between a guarantor and a co-signer?
For self-employed individuals, how you declare your income can determine whether it can be treated as a traditional or non-traditional source for your mortgage application.
Unlike adding extra income streams to a regular paycheque, self-employed applicants may need to follow a different set of lender rules.
Learn more about how business income may be assessed for mortgages here: Mortgages for Self-Employed
Most lenders and mortgage insurers don’t count boarder or roommate income because it isn’t seen as stable or guaranteed. Unlike rental income from a self-contained suite or property with a lease, boarder income often lacks formal agreements and can stop at any time.
Some lenders may allow a portion of the income to be used if there’s a long-term lease in place, but it’s the exception rather than the rule.
Lenders and insurers usually only count the CCB if it will continue for at least three more years past the mortgage start date. If your children are close to aging out of eligibility, the benefit may not be included in your qualifying income.
Investment income inside an RRSP or TFSA usually can’t be counted as qualifying income for a mortgage, because it’s tax-sheltered and not considered ongoing cash flow. Lenders want income that’s consistent, taxable, and likely to continue, which sheltered growth doesn’t provide.
But there are a couple of exceptions:
If you regularly draw investment income from a non-registered account and report it on your tax return (via T5 slips), lenders can often use it.
Note: Please consult with a professional expert mortgage broker for the income source details and documents you need for your unique situation.
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