What to Expect when you are a…
Full Time Permanent Salaried Employee:
In the case where you are a full time permanent employee of a company, a lender will typically require a pay stub, and a letter from your employer on company letterhead to confirm your full time permanent status, your current salary and how long you’ve been with the company.
Part Time/Casual Employee with Guaranteed Hours:
In this case, a lender will require a pay stub and a letter from your employer to confirm your part time permanent status, your start date, your hourly rate and the number of hours you are guaranteed to work. If you have been with the same employer for 2 years or more and regularly work more hours than your guarantee, we may be able to use your higher income if you can provide us with your last 2 years T4’s. Lenders will typically use the 2 year average, or the most recent year's income, whichever is lower.
Part Time/Casual Employee with no Guaranteed Hours & Commissioned Sales People:
In this scenario, you will have had to be with your employer for 2 full tax years as we have to use the average of the income reporting on each of your last 2 years T4’s with that company.
Landlord with Income from Rental Properties:
We will need a copy of your last 2 years tax returns (including the Statement of Real Estate Rentals), as well as a copy of the leases and bank statements to confirm the rents being deposited.
Self Employed Clients:
We will need your last 2 years full tax returns including the Statement of Business/Fishing/Farming Activity along with the corresponding Notices of Assessment from Revenue Canada to confirm no income taxes are owing.
We will need your last 2 years personal income tax returns including any Schedule 4 for dividend income if applicable, as well as the corresponding Notices of Assessment from Revenue Canada to confirm there are no income taxes outstanding.
As a self employed client, if the income reporting on your tax return has been written down significantly for tax purposes and the 2 year average is not sufficient to support the mortgage application, we may be able to proceed under a different Business for Self mortgage program and in that case, much more documentation could be required such as 12 months personal and business banking statements, work contracts or business financials etc.
If you are uncertain as to what sort of documentation you will be required to provide in your situation, please don’t hesitate to contact us to discuss!