Why lenders ask for 2 years of income history

Lenders in Canada typically require a two-year income history for part-time or variable jobs to confirm that the income is stable, consistent, and reliable. Since hours can fluctuate, they average earnings over two years to ensure borrowers can sustain mortgage payments.

They review documents like T4s, Notices of Assessment, pay stubs, and employment letters to assess stability, consistency, and whether the income is ongoing rather than temporary. This helps reduce lending risk and determine a safe qualifying income.

To better assess eligibility, lenders may also consider whether your hours are guaranteed, how long you’ve been in the role, and whether you have additional full-time income.