Mortgage industry consultation on a potential income verification tool

Budget 2024 announced the Government of Canada’s intention to consult with the mortgage industry about a tool to help lenders verify income for mortgages.

To get a mortgage, borrowers must disclose their sources of income. As proof, lenders typically ask borrowers to provide one or more of these Canadian tax documents:

• A proof of income statement
• Tax information slips
• A notice of assessment
• A statement of income and deductions

Given the potential for mortgage fraud at the income disclosure stage of the transaction, the mortgage industry is interested in an income verification tool to improve the experience of the borrower and to combat possible fraud.

Consultation opportunities

This fall, the CRA will invite national associations within the mortgage industry to participate in roundtable discussions to gather input on a potential income verification tool to help combat mortgage fraud.

Participants will have the opportunity to share their views on:

• Current practices, challenges, and opportunities regarding income verification practices in Canada
• Opportunities, considerations, and the need for a potential new income verification tool

In addition to the roundtable discussions, the CRA will seek broader input from other interested and affected parties within the industry through an online questionnaire, which will be open November 14 to December 6, 2024.

A summary of findings will be posted on Canada.ca in the winter of 2025.

Contact us

For more information on the consultation, please email dodeiss-donspei@cra-arc.gc.ca.