Incorporated physician
The corp is earning. Make sure a lender can see it.
A professional corporation is a tax structure, and the better it works for tax, the worse a standard mortgage application reads. Pay yourself $120,000 out of $500,000 of billings and most lenders see… $120,000.
The underwriting problem
Three lenders can read the same corporation three ways. The face-value lens counts salary plus dividends as drawn. The gross-up lens multiplies eligible dividends by the CRA factor of 1.38 before the ratios run. Add-back programs go furthest — your draw plus 60% of the corporation's net income after tax, because that money is yours even if you left it in the company. Matching your file to the right lens is most of the job.
Run this first
The three-lens calculator puts all three readings side by side on your billings, salary and dividends — and shows the borrowing gap between best and worst.
Three routes that fit this stage
| Lender | Min down | Why it fits |
|---|---|---|
| TD | 20% | Conventional professional lending — no insurance premium at all, 30-year amortization |
| Scotiabank | 10% | Projected-income program; counts a line of credit held elsewhere on balance |
| First National | 10% | Standard-premium monoline with a 120-day rate hold |
Add-back programs and the 60%-of-net-income credit are lender-specific, not a CRA rule. Your accountant-prepared financials replace any estimate.
What you'll be asked for
For a projected-income file, usually: confirmation of your residency or fellowship enrolment, or your signed employment/associate contract with specialty and start date; proof of licensure or College registration; recent Notices of Assessment plus a current income document; your down-payment source with about 90 days of history (a gift letter if any of it is gifted); and your line-of-credit and other debt details. Ramin sends a tailored checklist once your lender is chosen.