Can I Get a Mortgage If I Work a Seasonal Job in Alberta?

If you work a seasonal job, you may have wondered, “Will a bank even give me a mortgage?”

The good news is that seasonal employment does not automatically prevent you from qualifying for a mortgage.

Here in Central Alberta, seasonal work is pretty normal. Agriculture, construction, oilfield services, tourism, road work, landscaping and many other jobs naturally have busy seasons and slower seasons.

Mortgage lenders understand that.

What they really want to know is whether your income is consistent and likely to continue.

How Do Lenders Look at Seasonal Income?

Because seasonal income can change throughout the year, lenders usually look at your income history rather than simply multiplying your latest paycheque by 52 weeks.

Many lenders will want to see about two years of income history when income varies. Sagen, for example, identifies seasonal employment as variable income and requires a minimum two-year history under its guidelines.

That history helps show that your seasonal employment is a normal, predictable part of how you earn your living.

A Simple Example

Imagine you work in road construction from spring through fall.

You earn:

Year One: $68,000
Year Two: $72,000

You may not receive the same paycheque every month, but your tax documents show a steady pattern of annual income.

That can give a lender a much clearer picture than looking at one pay stub in July when you're working plenty of overtime.

What Documents Might You Need?

Every mortgage application is different, but seasonal workers may be asked for documents such as:

• T4 slips

• Notices of Assessment

• Current pay stubs

• A letter from your employer

• Previous year-end pay information

Canada Guaranty notes that seasonal employees will commonly need documentation supporting a two-year income average, while CMHC also advises borrowers to be prepared to provide proof of employment, income and previous tax documents when needed.

The lender may also want to understand how long you've worked in the same industry and whether returning to the same employer each season is normal for you.

What About Employment Insurance?

This is one of the most common questions I hear from seasonal workers.

Some seasonal employees regularly receive Employment Insurance during their off-season. Whether that income can be used for mortgage qualification depends on the lender, your history and the rest of your application.

Canada Guaranty's first-time homebuyer guidance specifically flags seasonal employment and EI income as situations where additional income documentation will likely be required.

This is an area where looking at the whole picture before applying can be especially helpful.

What Else Does a Lender Consider?

Your job is only one part of a mortgage application.

A lender will also consider things like your:

Credit history
How you've handled credit cards, loans and other debts matters.

Down payment
The amount and source of your down payment will need to be confirmed.

Current debts
Car payments, credit cards, lines of credit and other obligations affect how much mortgage you may qualify for.

Property
The home or acreage you're purchasing also needs to meet the lender's requirements.

CMHC notes that lenders may have different documentation requirements, which is one reason it's helpful to understand your options before making an offer.

Don't Assume You Have to Wait for a Full-Time Job

I wouldn't want someone who has worked the same seasonal career successfully for years to assume homeownership isn't available to them simply because their paycheques aren't identical every month.

Seasonal income just needs to be presented properly.

Sometimes the numbers work today. Sometimes a little preparation can put you in a stronger position six months or a year from now.

Either way, knowing where you stand gives you something valuable: a plan.

The Bottom Line

Yes, you can potentially qualify for a mortgage while working a seasonal job.

A lender will generally want to see an established income pattern and enough documentation to understand what you realistically earn over the year.

If you're working seasonally in Central Alberta and wondering what your income could qualify you for, I'm happy to look at the numbers with you. You don't need to have everything figured out before asking questions.

Sometimes a conversation over the numbers is the best place to start.

Tara Nevers
Mortgage Architects
403-877-6995
www.prairiekeymortgages.com
tara@prairiekeymortgages.com