Two years of notices of assessment and T4s that show the variable part. The two-year average sets the base. A year that dropped weighs heavier than a year that grew.
Each lender reads variable income its own way
Some average two years, others go with the weaker one, and that holds for commission, self-employed and other variable income. The difference in what you’re approved for is much bigger than any rate gap.
A weak submission costs you
An incomplete file can be declined when a complete one would have gone through. Sort the papers before you submit, so the lender has no gaps to fill with guesses.
Documents to gather
What the lender will ask for.
What you want from this file
Income and paperwork
Debts and credit
Property or security
Timeline
Lender options
Frequently asked
How is my commission income calculated?+
Usually the average of your last two years. If your income recently went down, many lenders use the lower year instead of the average. Two steady years in the same role give the strongest result.
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Ready before the offer, they make a five-day financing condition workable. Gathered after, they cost you weeks.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
