Short answer: A T4 shows employment or salary income. A T1 General is your full personal tax return, showing all income sources and deductions. A Notice of Assessment (NOA) confirms CRA assessed the return and shows any tax owing. Employees often qualify on a T4 and job letter. Self employed borrowers usually need two years of full T1 Generals plus NOAs, and incorporated owners add T4s and T5s.
What a T4 Shows
- Annual employment income
- Employer paid compensation
- Consistency with your job letter and pay stubs
- Salary paid by your corporation to you
What a T1 General Shows
- Total income from all sources
- Self employment, rental and dividend income
- Deductions and net figures
- Income trends across years
What a Notice of Assessment Shows
- That the return was filed and assessed
- Any tax balance owing
- Your filing history
Why Lenders Ask for All Three
The T4 confirms salary, the T1 shows the whole picture and the NOA confirms CRA accepted it and nothing is owing.
Mistakes That Cause Delays
- Sending only the NOA when the lender needs the T1
- Missing T1 pages
- An unclear salary vs dividend structure
- Tax owing that hasn’t been dealt with
→ Related: Self Employed Documents Checklist
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Frequently asked questions
Is a Notice of Assessment enough for a self employed mortgage?
Usually not. The NOA confirms your return was assessed, but lenders need the full T1 General to see where the income came from.
Can unpaid taxes affect approval?
Yes. Balances owing to CRA show on the NOA and may need to be paid before or at closing.
Do all self employed borrowers get T4s?
No. Only people paid salary through payroll, such as incorporated owners who pay themselves a wage. Sole proprietors report business income on the T1.
This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed through Mortgage Connection Inc.