Locum income looks messy.
The right lender reads it clean.
Locum and fee-for-service physicians earn strong annual income through variable monthly work. A lender that reads the year, not the slow month, is the whole game.
The short answer.
Locum physicians qualify for a mortgage in Canada using T4A and invoice history, read on an annual basis by physician-friendly lenders rather than penalised for variable monthly income. With recent billing history, a locum physician qualifies much like a salaried one, and incorporation can lift capacity further.
How locum income is read.
Locum and fee-for-service physicians earn through shifts, contracts, and invoices rather than a single salary. Standard self-employed qualification often demands two years of averaged income and penalises a slow stretch. Physician-friendly lenders instead read recent annual billing and accept T4A plus invoice history.
The practical effect: a locum physician with strong annual earnings qualifies much like a salaried attending, even with income that swings month to month.
What you will document.
- T4A slips and invoice or billing summaries showing recent income.
- Notices of assessment and personal tax returns.
- Corporate financial statements if you bill through a corporation.
- Contracts or a record of ongoing locum arrangements where available.
Managing variable cash flow.
The PLOC buffer
Incorporated locums should plan the salary-versus-dividend mix with their accountant before applying, since corporate-income qualification reads the corporation rather than the modest T4 drawn.
Questions doctors ask.
All guidesCan a locum physician get a mortgage in Canada?
Yes. Locum physicians qualify using T4A and invoice history, read on an annual basis by physician-friendly lenders. With recent billing history, a locum qualifies much like a salaried attending.
Does variable monthly income hurt a locum physician mortgage?
Not with the right lender. Physician-friendly lenders qualify on annual income rather than a single slow month, so variability does not penalise an otherwise strong annual picture.
Do locum physicians need two years of income history?
Not always. Some physician programs accept a shorter track record with recent billing, unlike standard self-employed qualification that often requires a two-year average.
Should a locum physician incorporate before getting a mortgage?
It depends on tax planning, but incorporated locums qualify on corporate income plus dividends, which can lift capacity 50-80%. Coordinate the salary-versus-dividend mix with your accountant before applying.
