Qualifying Income
Income is needed for most lenders in order to purchase or refinance a mortgage. Below is a list of things lenders look for when qualifying a client for a mortgage.
Salaried or Hourly Employee's:
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Employment Letter: Must be on company letterhead and signed by someone with authority with the employer. The letter must have the name of the employee, date of hire, salary or hourly rate, number of hours guaranteed each week (for hourly employees only), position / job title, overtime or bonus earned, vehicle allowance, any probation period or permanent stature, chances of continuing future employment and any pending wage or salary changes.
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Pay Stub: Must provide most recent pay stub that shows year to date earnings. The pay stub must be computer generated and no hand written or typed pay stubs will be accepted.
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T4's: Some lenders require proof of last two years worth of T4's to prove previous income.
Commissioned Employee's:
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Employment Letter: Must be on company letterhead and signed by someone with authority with the employer. The letter must have the name of the employee, date of hire, year to date earned commissions, position / job title, overtime or bonus earned, vehicle allowance, any probation period or permanent stature, chances of continuing future employment and any pending commission changes.
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Pay Stub: Must provide most recent pay stub that shows year to date earnings. The pay stub must be computer generated and no hand written or typed pay stubs will be accepted.
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T4's: Some lenders require proof of last two years worth of T4's to prove previous income.
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NOA's: Must provide last two years worth of notice of assessments from Revenue Canada.
Self Employed Income Documents:
(for CMHC or Genworth insured
mortgages)
AND one of the following:
last two years audited or accountant prepared financial statements
Confirmation of active business bank accounts indicating 2 year satisfactory operation
last two years worth of GST returns
