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Thread: Variable income effects on mortgage qualification

  1. #1
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    Default Variable income effects on mortgage qualification

    I just had a quick question on how banks would take your income into consideration if you work on a salary + job bonus basis.

    For example, lets say you have a rather low salary of $50,000 a year but with job bonuses you actually make around $120,000 a year. Will banks only look at the $50,000 as your income and base your available mortgage on that because the other $70,000 is "variable"?
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    depends, can you prove that the bonus is consistent? With something like your last 2 years of T1?

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    Typically they would use the avg of two years income from your NOA and T1 General (line 150) as income confirmation

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    So if this was a new position and you didn't have that 2 years of proof then they would base it off your guaranteed income? I guess in that sort of deal one could benefit from having an open mortgage then eh?
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    Damn, what kind of work do you do?

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    Originally posted by schurchill39
    So if this was a new position and you didn't have that 2 years of proof then they would base it off your guaranteed income? I guess in that sort of deal one could benefit from having an open mortgage then eh?
    that has nothing to do with if its a open/close mtg... It affects the total amount that they would lend you.

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    Are you a wireliner?? Sounds like my old compensation haha

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    Most of the time they will look at your last 2 years T4's and average them.

    Ex. 1 year u claim $80,000 other year you claim $120,000 they will qualify you based on $100,000

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    Originally posted by JDMsomething
    Most of the time they will look at your last 2 years T4's and average them.

    Ex. 1 year u claim $80,000 other year you claim $120,000 they will qualify you based on $100,000
    Need T1, T4 doesnt break down base salary/commission/bonus.

    AFAIK they dont take averages, but the latest year income. As long as its the same employment.

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    Originally posted by Canucks3322
    Damn, what kind of work do you do?
    Originally posted by lasimmon
    Are you a wireliner?? Sounds like my old compensation haha
    Nope, I work in hydraulic fracturing. I have my degree in chemical engineering but I opted to continue to work as an operator in the field for a bit before I eventually go to the office. I'm running the data van.


    Originally posted by JDMsomething
    Most of the time they will look at your last 2 years T4's and average them.

    Ex. 1 year u claim $80,000 other year you claim $120,000 they will qualify you based on $100,000
    Yea thats what I kind of figured. I'm a recent grad so I won't have two years of good t4's for them to look at. I'll just assume what my base salary is as I fool around on the online calculators and what not.
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