Commission income is qualified on history, not hope. Canadian lenders typically average two years of commission earnings from your tax returns, ask your employer to confirm your role and commission structure, and look hard at the trend: a rising average is a strong file, a falling one invites questions and sometimes a lower figure. Borrowers new to a commission role — however confident the pipeline — usually cannot use projected earnings until the tax record exists.

Photo via Wikimedia Commons.

When the average understates you

A mid-career switch into commission, a parental leave year inside the average, or one pandemic-style anomaly can drag a two-year average below reality. Some lenders will consider exceptions with a strong employment letter and year-to-date proof; B lenders will weigh bank deposits and contracts more heavily, at B pricing. The file improves with every filed tax year, so sequencing a purchase around filing season is sometimes the smartest single move.

Bonuses, overtime and shift premiums

The same two-year logic usually applies to overtime, bonuses and shift differentials in nursing, trades and emergency services: documented, averaged, and confirmed by your employer as ongoing. If a premium is new or temporary, do not build the purchase price on it. Bring pay stubs showing year-to-date figures plus two years of T4s and Notices of Assessment.

A note on rates

Posted rates are a starting point, not the final word. Rates are sometimes negotiable depending on the person and the situation, and we work with multiple lenders who offer different products and sometimes more competitive rates than any single posted table shows. Contact us and we will shop across lenders for your file — call Travis Bannert at (780) 720-8240. Any rate quoted for your file is based on an application and lender approval — it is confirmed only when a lender reviews your full application.

Start with a check, not a guess

Run your numbers through the Pre-Approval & Refinance Check — that page is the fastest way to sign up for a review of what you qualify for, what documents you need, and what your payment would look like on the homes you are actually watching in Edmonton and across Alberta.

Frequently asked questions

Is projected commission from a new job usable for a mortgage?
Generally no with mainstream lenders. You will typically need filed tax history in the commission role, though strong compensating factors can win exceptions with some lenders.

Thinking about this move in Edmonton or anywhere in Alberta? Call Travis Bannert at (780) 720-8240 — I will try to call you this week, or reply with a good time and we will set a phone appointment to walk through your file step by step.

By Travis Bannert, Mortgage Broker
Travis Bannert, Mortgage Broker | Next Door Mortgages, BFL Dominion Lending Centres | (780) 720-8240 | nextdoormortgages.com