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The T1 General is the standard Canada Revenue Agency personal income tax return that every individual, including the self-employed, files annually, and is one of the core documents a lender reviews to verify income on a mortgage file.
A salaried borrower can usually be verified with pay stubs and a letter of employment, but a self-employed or business-for-self borrower doesn't have those documents in the same form. For that borrower, the T1 General and its schedules, reviewed together with the Notice of Assessment, become the primary way a lender confirms what the borrower actually reported earning.
Because self-employed income can move around year to year, lenders commonly want to see more than a single tax year of T1s to judge whether income is stable, growing, or declining — the exact number of years requested varies by lender and program. Certain non-cash deductions claimed on the T1, such as capital cost allowance, may also be treated as an add-back to qualifying income, subject to the lender's own policy.
Core self-employed document: for business-for-self borrowers, the T1 General and its schedules are typically reviewed alongside the Notice of Assessment to confirm reported income.
More than one snapshot: lenders commonly review more than one tax year of T1s to judge whether self-employed income is stable, growing, or declining.
Add-backs start here: certain non-cash deductions claimed on the T1, like capital cost allowance, may be added back to qualifying income under the lender's own guidelines.
One national form, filed everywhere: every Canadian taxpayer uses the same T1 General package, adjusted for the province or territory of residence, through the CRA.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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