Definition
Gig economy workers generate irregular business income: often weekly or monthly with strong seasonal variability. Platforms issue a T4A (non-employee income) rather than a T4.
Mortgage treatment: - Classified as self-employment income → 2 years of T1 Generals required - Net income (after deductible expenses) is used, not gross income - Common problem: gig workers deduct significant expenses (vehicle, phone, equipment) → low net income → low borrowing capacity - Some B-lenders accept a gross income average with justification
Strategy: in the 12-24 months before the mortgage application, minimize deductions to maximize declared net income (knowing this increases tax payable for that period). The trade-off is often favorable if the gain in borrowing capacity exceeds the tax cost.