Budget 2026 proposes CRA income verification for mortgages

A proposed service with a future pilot

The November 5 budget proposes amending the Canada Revenue Agency Act. The stated goals include a more reliable application process and deterring mortgage fraud. Industry funding arrangements are intended to support the service after its initial phase.

This is a proposal, not an announcement that borrowers can use the service now. The funding period is not a confirmed public launch date. The measure does not specify which application documents it would replace.

What lenders review today

FCAC's current pre-approval guidance explains that lenders assess income, assets and debts. They may request employment information, a recent pay stub and evidence of the down payment and closing costs. Self-employed applicants may need notices of assessment for the previous two years.

Income verification is one part of that review. FCAC also cautions that pre-approval does not guarantee final mortgage approval: the property and down payment remain relevant. A verified income figure alone does not establish how much a lender will offer.

CRA already offers a different document

An existing CRA proof of income statement summarizes income and deductions for a particular tax year. Individuals can view and print it through CRA My Account under Tax returns. This document is separate from the proposed service for lenders and insurers.

Ask which document and tax years your lender requires before ordering or submitting records. A statement about a past tax year and evidence of your current employment answer different questions; your application may need both.

Preparing an Edmonton, B.C. or Ontario application

Our practical takeaway for a purchase in Edmonton, B.C. or Ontario is to build the application around the lender's current checklist. For example, if you changed jobs after your last tax return, ask how to document that change alongside the historical figures. If you work for yourself, clarify the income period being assessed before planning around an estimated borrowing amount.

• Which income records are required, and how recent must each one be?
• What additional evidence is needed for a job change or self-employment?
• Which down-payment and property documents are still outstanding?
• How should records be submitted, and when will the lender confirm remaining conditions?

Our pre-approval guide and self-employed mortgage guide can help organize the conversation. Contact Artisan Mortgages to discuss the documents and circumstances of your own application.