How Do You Get An NOA For A Mortgage?

Before answering the question: “How Do You Get An NOA For A Mortgage”, we should first tell you what an NOA is and why it is often requested when applying for a mortgage.

NOA stands for Notice Of Assessment. It is the final receipt that you receive from the Canada Revenue Agency after filing your income taxes. This is what an NOA looks like:

What Information Does The NOA Contain?

The information provided on the NOA will include:

1. Total income he declared (line 150).
2. Federal tax credits.
3. Federal taxes paid
4. CPP contributions
5. Whether you are receiving a refund money back from the government or if money is still required to pay the government.

Why Is The NOA Needed For A Mortgage?

When lending mortgage funds, the lender needs proof that you can afford to make the payments on the mortgage. However, they can only use the income that is declared to Canada Revenue. This actually hurts self employed entrepreneurs because they will often deduct expenses to reduce their taxable income.

Revenue Canada Is Always In “First Position”

The other main reason for asking for an NOA is to see if you owe the Canada Revenue Agency money. Banks won’t generally lend you money unless any debts are paid to Canada Revenue. Why? Because if the bank comes to collect, Canada Revenue always gets their money first and the bank gets the left overs! This is what is known as “second position”. The bank is always in second position behind Canada Revenue.

The Answer To: How Do You Get An NOA For A Mortgage?

Whenever you file your taxes, the NOA or the Notice of Reassessment is mailed to you through Canada Post. Thus, the easiest way to answer How Do You Get An NOA For A Mortgage is to retrieve the original from the mail. Unfortunately, many of our clients have either thrown it out or lost it. Here are some other alternatives:  

1. Login to My Account on the CRA website and download the NOA. . If you haven’t signed up already, this will take some time because the CRA will mail you an access code to complete the registration.
2. Subscribe to My Account on the CRA website if time permits. You should do this anyway for the future.
3. Contact your accountant if you use one. Your accountant will be able to access your CRA account online.
4. If you don’t have already have an accountant, you can authorize one thereby giving them access to your account online. We can recommend an accountant if need be.

Self-Employed Clients

There once was a time when self-employed clients such as barbers, hairdressers, bartenders and waiters and waitresses, who did not earn very much income, were buying homes and getting favourable mortgage loans. The Canadian Government is cracking down on entrepreneurs. This is in an effort to get him and others to declare their income. The ramifications have been huge. All financial institutions are now mandated by the Canadian Government to declare their income in order to properly qualify for a mortgage.

Yes the world has changed. The times of being innocent until proven guilty are gone. In the eyes of the bank and government, we are all guilty until proven innocent!

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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