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Mortgage Squad Advisors
Commission Income

Mortgage with commission income: qualified on what you actually earn.

Realtors, car and insurance sales, tech and SaaS reps, recruiters: if commission drives your pay, most lenders qualify you on a two-year average of your commission income. We match you to the ones that treat it favourably.

Two-year income averageBase + commission or 100%T4s, NOAs, T1 GeneralsRising-trend friendly lenders100+ lender panelRealtors & sales pros
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Written by the Mortgage Squad Advisors Editorial Team · Reviewed by Surrayya Afzal, Principal Broker, FSRA #M14001433 · Updated August 2026 · Reviewed quarterly; next review November 2026

Self-employed?
Bank said no? Some lenders read business-for-self income differently.
We document your reported income plus legitimate add-backs (like depreciation) — approval is never guaranteed.
How add-backs can workIllustrative — add-backs vary by lender
✓T1 line 15000$72K
✓+ CCA depreciation$14K
✓+ Business-use-of-home (some lenders)$8K
Qualifying income$94K
A-lender
2 yr NOAs
B / alt-A
Some: 1 yr
Private
Equity first

A-lenders usually want 2 years of NOAs; some B-lenders consider 1 year; private lenders focus on equity.

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Self-employed mortgage — can I qualify?
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Commission earners hit a wall that salaried applicants never see: your best month means nothing on its own, and a strong year can be discounted if the year before was lean. Lenders worry the income isn’t “stable,” so they reach for the most conservative reading — averaging your last two years, sometimes leaning on the lower one, and setting aside a spike as an outlier. The result is that top performers get pre-approved for far less than their real earning power, or get bounced because one bank’s policy doesn’t fit their pay structure. It isn’t that commission income doesn’t qualify — it’s that the wrong lender, or a poorly documented file, makes it look weaker than it is.

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On this page
  1. How lenders read a mortgage with commission income
  2. Rising, flat, or declining — how your two-year trend changes the number
  3. Base-plus-commission vs. 100% commission
  4. The documents that make a commission income file approvable
  5. Why a broker matters more when you earn commission
  6. FAQ

How lenders read a mortgage with commission income

A mortgage with commission income comes down to one question the underwriter is really asking: how much of your pay can we count on year after year? Because commission fluctuates, most lenders answer it by averaging your commission income over the last two years of provable earnings — adding the figures from your two most recent Notices of Assessment or T4s and dividing by two. That average, not your record month or your strongest quarter, becomes the income they qualify you on. If you also draw a base salary, the base is generally counted in full and the commission average is layered on top.

The reason for the two-year window is stability, not suspicion. Lenders are approving payments you’ll carry for years, so they smooth a spike and a slow stretch into a single sustainable number. The upside is that one soft month can’t sink your file; the downside is that a breakout year gets tempered by the year before it. Because every lender writes these rules a little differently, the same income can produce very different approvals — which is where a broker earns their keep. If your commission runs through your own corporation or a T2125, you may be underwritten as self-employed instead; our self-employed mortgage page walks through that route, and the income required for a mortgage guide shows how the averaged figure translates into a purchase price.

Rising, flat, or declining — how your two-year trend changes the number

Two applicants can earn the identical total over two years and be treated completely differently, because lenders care about the direction of your commission income as much as the amount. When your earnings are rising steadily and well documented, that trend is a positive signal: many lenders will use the straightforward two-year average, and some will lean toward the higher, most recent year, on the view that the growth is real and likely to continue. Placing a rising-income file with one of those lenders can meaningfully lift what you qualify for.

When income is flat, the two-year average is simply your reliable run-rate and there’s little to debate. A declining trend is where lenders turn cautious — many will drop the average and use the lower, most recent year, reasoning that the newer figure better predicts what’s ahead. None of this disqualifies you; it sets the conservative income the lender will build your budget around. The practical takeaway is to know your trend before you shop, so your pre-approval reflects the number a real underwriter will use rather than an optimistic guess. Our mortgage affordability calculator lets you test how a higher or lower averaged income moves your maximum.

Base-plus-commission vs. 100% commission

How your pay is structured matters as much as how much you make. In a base-plus-commission arrangement, the salary portion is usually treated as stable employment income and counted in full, with the commission added on top as a two-year average. That base gives underwriters a floor they can rely on, which is why base-plus files often clear more easily — and sometimes at better pricing — than fully commissioned ones at the same total income. If you’re in this camp, a recent commission dip hurts less, because your base still anchors the file.

With 100% commission — common for realtors, independent insurance and mortgage agents, and many senior sales roles — the entire income is variable, so the two-year average carries the whole application. Lenders scrutinise consistency more closely and lean harder on your tax documents. It absolutely still qualifies for prime mortgages; it just rewards clean, well-organised paperwork and the right lender match. Either way, a strong down payment and solid credit give underwriters room to view variable income more generously, and our team helps you present the structure in the light that fits your file best.

The documents that make a commission income file approvable

Commission income files live or die on documentation, because the underwriter can only count what you can prove. The core set is usually your last two years of T4s (and T1 General returns if you file self-employed), the matching Notices of Assessment from the CRA, and your recent pay stubs showing year-to-date earnings. A short letter from your employer confirming your pay structure — base, commission split, or fully commissioned — often smooths the review. If your commission flows through a corporation or a T2125, expect to add business financials to the pile.

The frequent stumbling block is a mismatch: a pay stub that implies one income while the Notices of Assessment tell a different story, or a strong current year that hasn’t landed on a tax return yet. Underwriters resolve doubt conservatively, so gaps and inconsistencies quietly shrink your approval. Part of our job is assembling the package so your two-year average reads clearly and your best case is on the page — not buried. We tell you the exact list for your situation up front, then present it to the lenders most likely to say yes. When you’re ready, start a no-obligation pre-approval or apply online, and if it’s faster to just ask, Maya can answer commission-income questions any time.

Why a broker matters more when you earn commission

For a salaried borrower, most lenders reach a similar number and the game is mostly rate. For commission income, the lender you choose changes what you qualify for — sometimes dramatically — because policies on averaging, rising trends, and declining years genuinely differ from one lender to the next. Take a rising-income file to a bank that flatly averages two years and you leave borrowing power on the table; take the same file to a lender that rewards the trend and your budget grows without a dollar of extra income. A broker’s value is knowing, before you apply, which door to knock on.

At Mortgage Squad Advisors we work with 100+ lenders — prime banks, monoline lenders, and alternative options — so we can place base-plus, fully-commissioned, newer, and between-strong-years files with the lender whose rules fit. If a recent down year or a short history rules out the banks today, we can bridge through an alternative lender and map your return to prime pricing once you have two clean years. We’re an FSRA-licensed brokerage (#13737); every lender and broker fee is disclosed in writing, and a licensed advisor stays on your file from the first document to funding day.

What you get

Why Canadians choose Mortgage Squad Advisors.

Qualify on your commission income — typically averaged over the last two years of provable earnings
Works for base-plus-commission and 100%-commission structures alike
Realtors, mortgage agents, car / insurance / retail sales, tech & SaaS reps, recruiters, and account executives
A rising two-year trend is often taken at or near the higher year with the right lender
We package T4s, T1 Generals, and Notices of Assessment so underwriting sees your income clearly
Base salary usually counts in full; commission is layered on top of it
Access to 100+ lenders — including those that read commission income favourably
Alternative and B-lender options if you’re newer to commission or between strong years
Straight talk on how a declining trend is treated, before you shop for a home
FSRA-licensed brokerage #13737 — every lender and broker fee disclosed in writing
How it works

Three simple steps, no pressure.

  1. 1

    Show us two years of pay

    Send your last two years of T4s or T1 Generals plus your Notices of Assessment, and your most recent pay stubs. We read how your income is structured — base plus commission, or fully commission — and calculate the average a lender will actually use. No credit pull to start.

  2. 2

    We match the right lender

    Lender policies on commission income vary widely: some average the two years flatly, some lean toward the higher year when the trend is rising, and some discount a spike. From 100+ lenders we shortlist the ones whose rules fit your pay pattern, then confirm the number you qualify for in writing.

  3. 3

    Get pre-approved & offer with confidence

    With the income documented and the lender chosen, we secure a pre-approval you can shop on. You house-hunt knowing your real budget — not a lowball figure from a bank that misread your commission — and we carry the file through to funding.

Start your pre-approval — 5 min
FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

Can I get a mortgage with commission income?
Yes. Commission income qualifies for a mortgage; the key is how it’s measured1. Most lenders average your commission income over the last two years using your tax documents, then use that figure to calculate what you can borrow. With provable, reasonably consistent commission earnings and the right lender match, commission earners qualify for the same prime mortgages as salaried applicants.
How do lenders calculate commission income?
The common approach is a two-year average. A lender looks at your commission income on your last two Notices of Assessment or T4s2, adds the two years together, and divides by two. That average — not your best single month or year — becomes the income they qualify you on. If you also earn a base salary, the base is typically counted in full and the commission average is layered on top.
Why do lenders average two years instead of using my latest income?
Because commission income moves, and lenders underwrite for the payments you’ll make for years, not just today. Averaging two years smooths out a strong month or a slow quarter into a figure they consider sustainable. It can feel conservative when you’re on an upswing, but it’s also why a single soft month won’t sink your application — the average absorbs the noise on both sides.
My income is rising every year — will they still average it down?
Not always. A clear upward trend is a positive signal, and some lenders will take the average, and a few will lean toward the higher of the two years when the growth is steady and well documented. Others hold to a flat two-year average regardless. This is exactly where lender choice matters most: we place rising-income files with the lenders whose policy rewards the trend rather than flattening it.
What if my commission income went down last year?
A declining trend is treated more cautiously. Many lenders will use the lower, most recent year rather than the two-year average when income is falling, on the view that the newer figure is the more reliable predictor. It doesn’t disqualify you — it just sets a more conservative income number. We’ll tell you upfront how a down year affects your budget so there are no surprises at underwriting.
I earn a base salary plus commission — how is that treated?
This is often the strongest position. Your base salary is usually counted in full as stable employment income, and your commission is added on top as a two-year average. Because the base gives underwriters a floor they can rely on, base-plus-commission files frequently qualify more easily than fully commission ones, even at the same total earnings.
What documents do I need for a commission income mortgage?
Typically: your last two years of T4s (and T1 General tax returns if you file self-employed), the matching Notices of Assessment from the CRA, and recent pay stubs. If your commission runs through a corporation or a T2125, we’ll ask for the business financials too. A letter from your employer confirming your pay structure often helps. We tell you the exact list for your situation before you apply.
Am I considered self-employed if I earn commission?
It depends on how you’re paid. If you’re a T4 employee earning commission, you’re an employee whose income happens to be variable — not self-employed. If you invoice through your own corporation or report on a T2125 (common for realtors and independent agents), lenders treat you as self-employed and look at your business income3. The document set and the lenders differ, so it’s worth getting the classification right early. See our self-employed mortgage page for that path.
What if I’m new to commission or between strong years?
Prime lenders generally want a two-year history, so a shorter track record or a recent down year can narrow your options at the banks. That’s where alternative and B-lenders come in — they take a more flexible view of variable income in exchange for a rate premium, and can bridge you until you have the two clean years that unlock prime pricing. We map that path so the alternative mortgage is a stepping stone, not a dead end.

Related products

Self-employed mortgageMortgage for contract workersSelf-employed mortgage ratesIncome required for a mortgageAffordability calculatorAlternative lendingPre-approval vs pre-qualificationFirst-time buyer mortgage

Sources & references

Figures on this page are sourced below and re-checked each quarter. Rates, insurer rules and lender policies change — confirm anything you plan to act on with a licensed advisor.

  1. 1. Financial Consumer Agency of Canada, Getting pre-approved and qualifying for a mortgage (accessed Sep 2026) — Lenders assess your income and debts (GDS/TDS) and ask for proof of income.
  2. 2. Canada Revenue Agency, Line 10100: employment income (accessed Sep 2026) — Employment income, including commissions, is reported on a T4 slip.
  3. 3. CMHC, Self-employed mortgage loan insurance (accessed Sep 2026) — Insured mortgage options and documentation for self-employed borrowers.

Ready when you are.

No obligation, and no credit pull to begin. A licensed advisor reviews your file with you, and Maya, our AI assistant, can answer quick questions any time.

Start your pre-approval — 5 min Chat with Maya