A self-employed borrower with irregular income wants to qualify for a mortgage. Which documentation would be most critical for their application?
Correct Answer
A) Notice of Assessment from CRA for past two years
Self-employed borrowers must typically provide Notice of Assessment documents from the Canada Revenue Agency for the past two years to verify their declared income. This is the most reliable documentation of their actual reported income for mortgage qualification purposes.
Why This Is the Correct Answer
Notice of Assessment from CRA for the past two years is the gold standard for verifying self-employed income. These documents provide official, government-verified records of declared income that lenders can rely on for qualification purposes. The two-year period allows assessment of income stability and trends. CRA NOAs are considered the most credible documentation because they represent income that has been officially reported and accepted by the tax authority, making them essential for mortgage underwriting decisions.
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A self-employed borrower with irregular income is applying for a mortgage. Which documentation requirement is most likely to be emphasized by the lender?
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