Mortgage tax Tips for 2026

Are you thinking about accessing your home equity or getting a new mortgage in the near future? If yes, then you would want to pay close attention to what you are writing on your taxes as this could impact your ability to qualify for the mortgage amount that you seek:

Rental income: it's unbelievable how many landlords I see not declaring their rental income. If you need rental income to qualify for a certain mortgage amount, then lenders will be looking to see if you declared it in previous years. There is no point hiding this income from your taxes because there are numerous expenses you can write off to minimize the resulting tax amount or even trigger a refund

Your declared income (especially if you’re self-employed or commission-based) directly affects how much you can qualify for. Make sure you check with your mortgage consultant about how much income is needed prior to filing your taxes. It might be worthwhile discounting some expenses and taking a tax hit just to achieve your goal

Write-offs and deductions can lower taxable income, which may reduce your approved mortgage amount

Historical income: if your income for the current tax year is showing a downward trend as compared with the previous year, then the lender might be inclined to discount your previous years of higher income (when doing an average)

Planning your taxes with a mortgage goal in mind can help maximize borrowing power while staying compliant