One strong pay period is not a reliable picture of a variable income. An organised history helps us ask the right lender questions.
1. Separate the components of pay
List base salary or guaranteed hours separately from commissions, overtime, bonuses and contract receipts. Mark when each source began. Avoid combining an expected bonus with money already earned.
2. Explain interruptions and changes
Prepare a short timeline of job changes, leave periods, contract renewals and unusually strong or weak periods. Ask which documents and history the lender requires for each component; policies are not identical.
3. Choose a comfortable household budget
Compare your planned housing cost with a conservative personal income scenario as well as a typical one. This household exercise is separate from lender qualification. Tell me if the purchase only works when every variable component performs at its best.
Questions to bring to our conversation
- Which parts of my income can be considered?
- What evidence is needed for each part?
- Can I manage the payment during a quieter period?
Further reading: FCAC: Mortgage pre-approval. General information; lender requirements and individual circumstances vary.