From an income tax perspective, it’s advantageous to expense as much as you can to lower your taxable income, but that can cause a problem when it’s time to qualify for a mortgage. CMHC is starting to be less ridged towards self employed people who can afford a mortgage. Where as before, flexible and common-sense approaches such as a notice of assessment accompanied by a T1 General tax form, a proof of income statement from the Canada Revenue Agency, and a T2125 form, which is a statement of business or professional activities. Before October 2018, these practices were only available to B lenders and alternative lenders.
Sources:
https://www.theglobeandmail.com/investing/personal-finance/household-finances/video-self-employed-canadian-workers-face-challenges-in-obtaining-mortgages
https://www.cbc.ca/news/business/cmhc-self-employed-mortgages-1.4753446
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