A mortgage applicant provides a T4 slip showing $55,000 in employment income but does not have their Notice of Assessment (NOA) for the most recent tax year. The mortgage agent needs to submit the application quickly. What is the most appropriate action for the mortgage agent according to lender requirements?

Question: A mortgage applicant provides a T4 slip showing $55,000 in employment income but does not have their Notice of Assessment (NOA) for the most recent tax year. The mortgage agent needs to submit the application quickly. What is the most appropriate action for the mortgage agent according to lender requirements?

Answer options: ✅ The mortgage agent must obtain the NOA as it is generally required by lenders to verify taxable income and ensure no outstanding tax arrears, even if the T4 is available.

• The T4 is sufficient documentation for income verification, and the NOA is only needed if there are discrepancies.
• The mortgage agent should advise the client to state their income verbally, as the T4 is often outdated.
• The mortgage agent can proceed if the applicant provides a recent pay stub, as this overrides the need for an NOA.

Correct answer: The mortgage agent must obtain the NOA as it is generally required by lenders to verify taxable income and ensure no outstanding tax arrears, even if the T4 is available.

Explanation: While T4s show gross employment income, the Notice of Assessment (NOA) confirms taxable income, deductions, and ensures no outstanding tax arrears, which is a critical piece of documentation for income verification required by most lenders.