Can I get a mortgage if I work on contract?
Yes. Contract workers get approved regularly. Lenders care less about the word ‘contract’ and more about whether your income is stable and likely to continue. If you can show a track record in the same field — typically around two years — and documents that back it up, many lenders will treat your contract income much like salaried income. The key is documentation and continuity, both of which we help you build.
How much history do lenders want to see?
Most lenders want to see roughly a two-year history of contract work in the same field, which lets them use an average of your income. That said, it isn’t an absolute rule: some lenders accept less when continuity is strong — for example, if you moved from a permanent role into a contract in the same profession, or you’re on a renewing contract with the same employer. We’ll tell you honestly where your history sits and which lenders fit it.
What documents do I need for a contract-income mortgage?
Typically: your current contract, any prior contracts or renewal letters showing continuity, T4s for the last two years, your Notices of Assessment (NOAs) from CRA, recent pay stubs, and often an employment or client letter confirming the arrangement is ongoing. Incorporated contractors also provide business financials and personal NOAs. We give you a tailored checklist so nothing is missing when the file goes to the lender.
How do lenders treat gaps between contracts?
Reasonable gaps are normal in contract work and lenders know it — the concern is a pattern of long, unexplained downtime. We contextualize gaps: a two-week break between renewals reads very differently from six idle months. Showing that you consistently line up the next contract, work in an in-demand field, or have a signed upcoming contract all reassure the lender. A clear written explanation of any gap is far better than leaving it to their imagination.
I’m an incorporated contractor — is that different from a T4 contract employee?
Yes, and it matters a lot. If you invoice through your own corporation, lenders underwrite you as self-employed — they look at your business income, personal draws, and NOAs, and your best options usually live on our self-employed mortgage path. If you’re a T4 contract employee (an employer deducts tax and issues you a T4), you’re documented much more like a salaried employee, on your pay stubs, T4s and employment letter. Tell us which you are and we route the file accordingly.
Will I pay a higher interest rate because I’m on contract?
Not automatically. When your history and documents line up, contract workers frequently qualify for the same prime A-lender rates as salaried borrowers — there is no built-in ‘contract penalty’ at a good lender. A higher rate only comes into play if you need an alternative lender because of a short history, credit issues, or unusual income. Even then, we map a plan to move you back to prime pricing at renewal.
Can I qualify as a first-time buyer on contract income?
Absolutely. Plenty of first-time buyers work on contract, and it doesn’t block you from the usual first-time programs. You’ll need the same continuity and documentation as any contract borrower, but your down payment sources, credit, and overall picture are assessed just like anyone else’s. If you’re buying your first home on contract income, we’ll walk you through both the income packaging and the first-time-buyer steps together.
My contract is ending soon — does that kill my application?
Not necessarily. Lenders want confidence the income continues, so the strongest position is a signed renewal or a new contract lined up. But even without one, a long track record of back-to-back contracts, a letter from your employer or client indicating intent to renew, and demand in your field all help. We’d rather have this conversation early so we can time your application and gather the right evidence before the current contract lapses.
How do I actually start?
Start by telling us your field, how long you’ve been on contract, and whether you’re T4 or incorporated — no credit check needed to begin. You can ask Maya any time, or send your details and we’ll come back with a tailored document checklist and a shortlist of lenders that fit your profile. From there we build the package and target a pre-approval.
