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:

• 90% (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 will need to supply:

• Complete T1 Generals for the last two years.
• Confirmation of no taxes owed (business or personal)
• Accountant prepared company financials or T2s.
• Confirmation of business ownership.

Sole Proprietor

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

• Complete T1 Generals for the last two years including statements of business activities.
• Confirmation no taxes owed
• One of the following: Business license/registration, trade license, or GST registrations/returns

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

• Complete T1 Generals for the last two years including the statement of business activities
• Supporting NOA
• Confirmation no taxes owed
• 6 months of business bank statements
• One of the following: business license/registration, trade license, or GST registrations/returns

Incorporated or limited company

• Two years of accountant prepared financials or corporate T2s
• Supporting NOA
• Complete T1 Generals for the last two years
• Confirmation of no taxes owed
• Confirmation of 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/parental leave

Ask your underwriter or BDM for more details

Proof of business through the following:

• Articles of incorporation
• Business license/registration
• Trade license
• GST/HST registrations/returns
• Percentage of share ownership

Required documentation:

• Self-Employed Flex Mortgage Form
• Minimum 12 months bank statements
• Shareholder/partnership agreement
• Confirmation of no personal or business taxes owing

Additional documentation may be required.

Employment Income:

Employed:

Verify income by obtaining three or more of the following documents:

• Letter of employment on company letterhead
• Most recent pay stub (must be dated within 60 days of the mortgage closing date)
• Most recent year’s NOA
• Verbal confirmation with employer

Self-employed:

• Follow BFS Alt Provable Program or Flex Bank Statement Program documentation requirements. (https://bwbbrokerinfo.ca/self-employed-mortgage-suite/)

Rental income:

Refinancing a rental property?
Rental income to be verified by way of Copy of Current Lease Agreement supported by one of the following:

• Confirmation of Fair Market Rents completed by Solidifi, NAS, or RPS
• Most recent T1 General supported by Notice of Assessment
• Most recent 3 months of bank statements

Purchasing a rental property?

• Market rent assessment from appraiser approved on either NAS, Solidifi, or RPS

Rental income calculation:

Non- Subject rentals:
Complete our rental worksheet. If a surplus, add to income, if a deficit add to liabilities.

Subject Rentals:

Complete the rental worksheet excluding the principal and interest heat and tax payment. It is already populated in your system and mortgage request.

It will be a surplus. Add that amount to other income.

Rental worksheet can be found here.