Commissions and bonuses can support a solid mortgage file. But the lender won’t count all of it because this year went well. It wants a track record, a calculation method, and proof that lines up.
Separate income received from income used
One big bonus or a strong commission year can make the file look too rosy. Lenders often look at history, the average, job stability and whether that income is likely to continue.
I have to explain which part of your income can qualify the file and which part stays out of a cautious calculation.
Prepare proof before the offer
T4 slips, pay stubs, employment letter, commission statements, notices of assessment: they should all tell the same story. If your bonus swings a lot from year to year, say so before submission.
Income proof lenders read
| Income type | Useful proof | Watch point |
|---|---|---|
| Salary | Pay stubs and employment letter | Probation or recent job change. |
| Variable income | Two-year history | Bonus or commission swings. |
| Self-employed | Tax documents and deposits | Income declared versus cash flow. |
Variable income is easier to defend with two solid years than with one great one.
Choose the lender by policy
Some lenders are strict about commissions. Others accept a well-documented average. The file needs to go to a lender whose policy recognizes this kind of income.
Where the file usually needs attention
These bars show which items deserve attention first; they are not a credit score or approval promise.
Clean documents reduce back-and-forth.
A realistic condition protects the offer.
Policy fit often matters as much as price.
- ✓T4 slips or statements
- ✓Pay stubs
- ✓Bonus history
- ✓Notices of assessment
- ✓Employment letter
- ✓Usable average