[Henry17]

If you want to start paying taxes because you are a good moral citizen then do so. Don't do it for the purposes of getting a mortgage. What you pay in taxes would be far far greater then what it would cost you to borrow the money at a higher rate from a private lender.

Banks are not going to lend you money with no proof of income. You best bet is to try the sub-prime market. In Canada Xceed or Home Capital are two options. I have called to ask and it seems the answer on income verification seems to be dependent on who answers the phone.

If the subprime market won't lend to you then borrow the money from a private lender. Obviously the interest will be higher but still a lot less then what CRA would take from you should you declare your income.