Income verification

Salaried

Salaried and hourly employees may need to supply:

• A job letter and a recent pay stub to show consistent salary

If your client’s hours aren’t guaranteed or they have a lot of overtime, your underwriter may also ask for a 2-year income history.

Commissioned

Commissioned salespeople typically need the same documents as a salaried employee except they may also need to provide:

• 2 years of T1 Generals with corresponding NOA’s. This is to establish a 2-year income average.

Owner-occupied properties with a rental suite: 

• 50%-80% (depending on location) of market rent added to income from an approved appraiser.

Ask your underwriter or BDM for more details.

Incorporated

Self-employed clients who are incorporated and can provide traditional income verification may need to supply:

• Most current T1 General including statements of business activities. To establish a stable income, but also so a lender can see your client’s sources of income.
• Confirmation of no taxes owed
• Accountant prepared company financials supported by business bank statements. To establish your client’s company is in good financial standing and to compare the income level being pulled out of the company is sustainable.
• Current corporate search to confirm business ownership.

Sole Proprietor

Self-employed clients who are sole proprietors and can provide traditional income verification may need to supply:

• Most current T1 General including statements of business activities. To establish a stable income, but also so a lender can see their sources of income.
• Confirmation no taxes owed
• One of the following: Business license/registration, trade license, or GST registrations/returns to prove business ownership/partnership

Ask your underwriter or BDM for more details

Alternative provable income verification

Proprietary, specialized approach using gross-ups and add-backs available. Talk to your BDM.

Alternative verification of income can be provided via the following documents:

Sole proprietor/partnership

• Most current T1 General
• Confirmation no taxes owed
• Recent financial statements or statement of business activities to indicate a level of income
• One of the following: business license/registration, trade license, or GST registrations/returns to prove business ownership/partnership

Incorporated or limited company

• Most current accountant prepared financials or corporate T2s
• Most current T1 General and confirmation no taxes owed
• Corporate search/articles of incorporation – for business ownership
• Six months of bank statements

Gross-ups and add-backs approach is considered in this instance. Work with your underwriter or BDM to discuss income prior to submission.

Other documentation

There are other income sources that can help your client’s application get approved.

• • • Canada Child Benefit (CCB)
    • Alimony/child support
    • Government and/or private pension
    • Rental property income
    • EI benefit for maternity leave

Ask your underwriter or BDM for more details

Your client can verify their rental income via the following:

• Full T1 Generals showing net rental income
• If not reported in T1 General, market rent from an approved appraiser

Verified Income

• A job letter and recent paystub. If the client’s hours aren’t guaranteed, underwriter may also ask for a 2-year income history.

Alternative Proveable Income

Proprietary, specialized approach using gross-ups and add-backs.

Sole Proprieter

• Most current T1 General
• Confirmation no taxes owed
• Recent financial statements or statement of business activities supported by business bank statements
• One of the following: business license/registration, trade license or GST registration/returns

Incorporated or limited company

• Most current accountant prepared financials or corporate T2s
• Most current T1 Generals and confirmation no taxes owed
• Corporate search/articles of incorporation
• Six months bank statements