Mortgage Glossary

Commission Income

When income can change from year to year, the mortgage lenders require different information.
Most require either two or three years of tax returns. Most will accept a tax return prepared by an accountant.
If you prepare your own tax return they will also want to see the 'notice of assessment' sent to you by the Government.
The lender will then take your average NET income. Some lenders will permit you to 'add back' some deductions to your net income. An office expense write off in your current residence is such an example.

Other types of income that can be used:
• Pension income,
• Social security income,
• Investment income,
• Dividend income,
• Income from annuities
• Child tax credits,
• Child support income,
• Alimony income,
• Rental income (including illegal suites in some cases!).

Any income of a continual nature can be included.
For example if you received a bonus last year, then you can only use that bonus if you can show that you receive a similar amount every year.
The total income is then used to calculate the 32% TDS and 40% GDS.

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