If you’re paid fully or partially by commission, qualifying for a mortgage in Alberta is absolutely possible — but lenders assess your income differently than they would for someone on a fixed salary.
Here’s how it typically works.
1. Most Lenders Require a 2-Year History
In Alberta (and across Canada), lenders generally want to see a two-year history of commission income.
They will typically:
- Review your last two years of T4s
- Review your most recent Notice of Assessment (NOA)
- Look at recent pay stubs to confirm current earnings
If your commission income fluctuates, lenders usually average the last two years.
For example:
- 2023 income: $95,000
- 2024 income: $110,000
- Average qualifying income: $102,500
However, some lenders may use the lower of the two years if income is declining.
2. Stability Matters More Than the Structure
It’s not just about how you’re paid, it’s about consistency.
Lenders want to see:
- Continuous employment in the same industry
- No large unexplained income drops
- No significant employment gaps
If you changed employers but stayed in the same commission-based field, that is often acceptable, especially with a strong history.
3. Commission vs. Self-Employed
There’s an important distinction:
- If you receive a T4 and are on payroll, you are typically treated as an employee with variable income.
- If you are paid via T4A or through a corporation, lenders may treat you as self-employed, which has stricter documentation requirements.
This can significantly affect how income is calculated.
4. Bonuses and Overtime
If your compensation includes base salary + commission or bonuses, lenders may:
- Use the base salary as guaranteed income
- Average the commission/bonus portion over two years
Again, consistency is key.
5. What If You’ve Been Commission-Based for Less Than 2 Years?
Options become more limited, but it’s not impossible.
Some lenders may consider:
- Strong previous history in the same industry
- A guaranteed base salary
- Exception programs (case-by-case basis)
This is where working with a mortgage broker can make a significant difference, as policies vary between lenders.
6. Alberta-Specific Considerations
In Alberta’s economy — especially industries tied to energy, agriculture, and sales — income can fluctuate year to year. Lenders are aware of this, but they still prioritize stability.
If your income increased significantly in the most recent year, some lenders may consider using the higher income if supported by:
- A strong year-to-date earnings trend
- Employer confirmation of expected income
- Industry stability
Final Thoughts
Being paid on commission does not disqualify you from getting a mortgage in Alberta. However, lenders will look closely at:
- A two-year income history
- Income stability
- Your employment structure (T4 vs. self-employed)
- Overall debt ratios and credit
If you’re unsure how your income will be viewed, it’s worth reviewing your documents with a mortgage professional before applying. Chris Marriner specializes in getting buyers with unique situations approved in Canada. Book a consultation today!
