Even if you don’t own a business, a bank may request a Personal Financial Statement when you apply for a high-net-worth mortgage. This is a simple one-page document listing:

  • Assets: Real estate, RRSPs, TFSAs, cars, jewelry
  • Liabilities: Mortgages, credit card balances, car loans

Key Difference:

  • T1 General → Shows what the government sees for taxes
  • Financials → Show the bank the full health of your finances

Understanding Your T4 Slip

A T4 (Statement of Remuneration Paid) is the most common tax slip in Canada. It summarizes your annual employment income and taxes deducted.

  • Issued by: Your employer
  • Deadline: Must be provided by the last day of February each year

How to Read Your T4 (Key Boxes)

  • Box 14 – Employment Income: Your gross income (salary, wages, bonuses, vacation pay)
  • Box 22 – Income Tax Deducted: Total federal and provincial tax sent to the government
  • Box 16 & 18: CPP and EI contributions
  • Box 44 – Union Dues: Deductible on your taxes
  • Box 40 – Taxable Benefits: Company perks included in Box 14

T4 vs. T4A: What’s the Difference?

  • T4: For employees (full-time, part-time, casual)
  • T4A: For other income (pensions, commissions, scholarships, government benefits)

Why Mortgage Lenders Love the T4

  • Proof of Stability: Shows annual income, not just a recent pay stub
  • Consistency Check: Compares claimed income vs. actual income
  • Average Calculation: Uses last two years of Box 14 for qualifying income
  • Tax Verification: Confirms employer remitted taxes

How to Get Your T4

  1. Employer Portal: ADP, Ceridian, or email
  2. CRA My Account: Backup copy available online

What is a T5 Slip?

A T5 (Statement of Investment Income) reports money your investments earned (interest, dividends, royalties) in non-registered accounts.

What’s Included on a T5?

  • Box 13 – Interest: Savings accounts, GICs, bonds
  • Boxes 10–12, 24–26 – Dividends: Canadian corporations
  • Box 15 – Foreign Income: Converted to CAD
  • Box 18 – Capital Gains Dividends: From mutual funds or trusts

Not Included: TFSA, RRSP, FHSA income (tax-sheltered)

T5s for Business Owners

  • Issued if you pay yourself via dividends
  • No CPP or EI deductions
  • Lenders use T5s to verify income

Why Lenders Care About T5s

  • Verify Non-Employment Income: For retirees or business owners
  • Confirm Down Payment Assets: Anti-money laundering checks

Commission Statements Explained

A commission statement breaks down variable pay for sales roles (real estate, automotive, SaaS, insurance).

What’s Included?

  • Sales activity
  • Revenue/volume
  • Commission rate
  • Tiered accelerators
  • Clawbacks/adjustments
  • Net payout

Why Lenders Ask for Them

  • YTD Momentum: Shows current earnings trend
  • Income Stability: Detects fluctuations
  • Structure: Base vs. commission

Rule: Lenders use a 2-year average of T4 + YTD commissions for mortgage qualification.