This something some local providers facing. One lady want mortgage but she has to close her day home, work in centre for few year, and then once get mortgage, can open up again.

Self-employment is always harder to finance because less secure than employment. Plus sometime carer think the earn day care fees x number children but that gross business income before expenses. It the profit that is real income level for everything - CRA, loan and everything. Some whol write off lot of expenses end with income of under $20k for tax which not good for loan.

Be aware - re-financing. The rules changed. If re-finance, it like new application if any change. So if want to add money to mortgage when re-finance, it be treated like brand-new mortgage application now. If just renewing as one term end and new one begin, and accepting renewal offer send, then no change and it just automatically accepted. This mean, if you want to re-refinance, you need to qualify for loan criteria. Your income as say on line 150 of tax return will be what used to see if new mortgage/refinance mortgage go through.

There is calculation used to any loan or mortgage. It connected to household income but it does consider household debt, expenses and sometime asset/equity.

Best option would be to try find a debt consolidation company in your area. Then focus on reducing debt level by paying off as much as possible as quick as possible so this situation not keep arising. With no payment down mortgage, likely most of permitted percent of income for debt repayment already allocated to that, so not much room to secure additional debt from new loan.