April 12, 20263 min read
This decision can affect both approval and the cost of the mortgage for years. Variable employment income can often be used for a prime mortgage, but lenders usually want evidence that it is established and likely to continue.
What changes the outcome
Here is what matters most:
- A two-year history is commonly requested for overtime, bonus and commission income, although lender policies and exceptions vary.
- T4s, notices of assessment year-to-date pay information and employer confirmation may be used to document the income.
- If the most recent year is materially lower, a lender may use the lower figure or ask for an explanation.
- A new commission role with no history can be harder to use than the same borrower's guaranteed base salary.
Plan ahead if a large portion of your compensation is variable so the right records are available before you make an offer.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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