Stated Income

Quick Summary

A mortgage application type where the borrower states their income without traditional tax returns.

ELI5 Explanation

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You declare how much you make without needing T4s or Notice of Assessments to prove it all.

Detailed Explanation

Stated income mortgages are designed for self-employed individuals or gig workers whose tax returns don't reflect their true cash flow. B-lenders and private lenders use bank statements or business financials instead of just personal tax NOAs.

Example

A business owner with $150k gross revenue but $40k net taxable income uses stated income to qualify for a mortgage.

Why It Matters

It allows business owners to access financing despite tax write-offs.