Real estate agent, commission-only income, 5 years in practice
THE SITUATION
There's a certain irony in a real estate agent having trouble qualifying for a mortgage. But for Amara — a busy Brampton agent with five years of experience and a solid book of business — that was exactly the situation she found herself in. Her income was real. Her career was established. Her problem was the way commission income looks on paper: variable year to year, with occasional extraordinary earning years that can actually work against an applicant when averaged against quieter periods.
THE CONFUSION
Amara had one exceptional year — a year when she closed several large transactions, including a commercial referral that significantly inflated her income. The following year was solid but more typical. When the bank averaged the two years, her qualifying income was lower than either year on its own. The exceptional year hadn't helped her — it had been diluted by the averaging formula. And her most recent twelve months of strong, consistent production didn't factor into the calculation at all.
She'd tried two lenders before she called me. Both had used the same two-year average approach. Neither had explored alternatives.
"My accountant told me I was making great money. The bank told me I wasn't making enough. I didn't know who to believe."
THE CLARITY
Commission-only income from real estate sales is a documented income type that several lenders handle well — but the method matters. Some lenders will look at the most recent two years and average them. Others will use the lower of the two years as the qualifying baseline. A smaller number will use the most recent twelve months if properly documented.
For Amara, the best approach was to identify a lender whose guidelines allowed a weighted average that gave greater weight to recent earnings, particularly given that her business had stabilized and her current production was strong and consistent.
We supplemented her application with a detailed income letter from her broker of record, three years of T1 generals, her real estate board production records, and a breakdown of her current pipeline. The file told a clear, consistent story of an established professional.
THE OUTCOME
Amara was approved and purchased in the $700,000--$750,000 range in Brampton. The rate was competitive at an A lender. The process from Clarity Call to approval was sixteen days. She now refers other agents in her office when they run into the same issue, which, it turns out, happens more often than most people realize.
THE LESSON
Commission income borrowers are not high-risk borrowers. They are income-variable borrowers, which is a different thing entirely. The right lender, presented with the right documentation, can read a commission income file as clearly as any T4. If you're in sales, real estate, finance, or any commission-based field, you can still qualify for a mortgage. It just requires a broker who knows how to build the file.
BOOK A CLARITY CALL
Commission income shouldn't be a barrier — it just needs to be presented properly. Let's talk about your income picture and what's actually possible.
