To verify income for a mortgage with Dominion Lending Centres, lenders typically use a combination of documents, including an employment letter, recent pay stubs, and potentially CRA tax returns for self-employed individuals. They may also verify this information by contacting the employer directly.
Here’s a more detailed look at the process:
1. Employment Verification:
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Letter of Employment:Lenders require a formal letter from your employer stating your position, employment start date, and salary.
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Pay Stubs:Provide recent pay stubs (usually the most recent one or two) to demonstrate current income.
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Employer Contact:Lenders may call or email your employer to confirm your employment and income.
2. Self-Employed Individuals:
- CRA Tax Returns: For self-employed individuals, lenders will likely require your Notice of Assessment (NOA) from the Canada Revenue Agency (CRA) for the past two years. This helps verify your income and demonstrate a consistent history.
3. Additional Documentation:
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Bank Statements:Lenders may request 3 months of bank account statements to verify deposits and withdrawals.
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Other Proof of Income:If you have additional income sources (e.g., investments), you may need to provide supporting documentation.
4. Important Considerations:
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2-Year Income History:Lenders typically look for a 2-year history of consistent income to assess your ability to repay the mortgage.
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Employment Status:Your employment status (part-time, full-time, self-employed) will influence the specific documents required.
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Pre-Approval:Getting pre-approved helps you understand your financial situation and the amount you can afford, but it requires you to submit the necessary documentation, including income verification, says Dominion Lending Centres.