Letter of Employment for a Mortgage in Canada (2025): Why It Matters & How to Get It Right

• What Is a Letter of Employment for a Mortgage?

• Why Lenders Ask for It

• What Should the Letter Include?

• Sample Employment Letter Format

• Real-Life Example: Ravi’s Letter Was Rejected — Here’s Why

• What If You’re Self-Employed or on Contract?

• What Other Documents Are Needed Alongside the Job Letter?

• What to Do If Your Employer Refuses to Provide a Letter

• How Long Is a Letter of Employment Valid?

• Final Tips from a Mortgage Expert

When you’re applying for a mortgage in Canada, your lender wants to make sure you can actually afford the home. That means proving your income — and one of the key documents they ask for is a **Letter of Employment**. It may sound simple, but many people get this part wrong, leading to delays or even denied approvals. In this article, we’ll walk you through everything you need to know to get it right the first time.

What Is a Letter of Employment for a Mortgage?

A Letter of Employment (often called a job letter) is a written confirmation from your employer that verifies where you work, your role, how long you’ve been employed, and your income. It’s one of the most important income proof documents lenders use to assess your ability to repay the mortgage.

Why Lenders Ask for It

Lenders don’t just take your word for it when you say, “I make ₹75,000 per month.” They want official documentation to confirm your job is stable and your income is reliable. The employment letter helps verify that:
• You’re actually employed
• Your job is ongoing (not seasonal or temporary)
• Your salary matches the number you mentioned on your application

What Should the Letter Include?

To avoid back-and-forth or rejections, your letter should include these key details:
• Your full name and job title
• Date of employment (start date)
• Your employment status — full-time, part-time, contract
• Gross annual or monthly income
• Whether you’re on probation or permanent
• Contact information for someone at HR or your manager
• Signed on official company letterhead

Sample Employment Letter Format

Here’s a basic example of what the letter might look like:


To Whom It May Concern,

This is to confirm that [Employee Name] is currently employed with [Company Name] as a [Job Title] since [Start Date]. They are a [Full-Time/Part-Time] employee earning an annual salary of ₹[Amount].

If you require any additional information, please contact me at [Phone Number or Email].

Sincerely,

[HR/Manager Name]
[Title]
[Signature and Letterhead]

Real-Life Example: Ravi’s Letter Was Rejected — Here’s Why

Ravi was thrilled when he found his dream condo in Mississauga and rushed to get his mortgage approved. He submitted a job letter from his company — but it got rejected by the lender.

Why? The letter was missing his salary details and wasn’t signed. It also didn’t include the company’s letterhead. Even though Ravi was a full-time employee for 4 years, the missing info raised red flags.

His mortgage broker had to go back and get the proper version, delaying everything by 4 days. This is why having a complete and professional letter from the start matters so much.

What If You’re Self-Employed or on Contract?

If you’re self-employed, you obviously can’t issue a job letter to yourself. Instead, you’ll need to provide:
• 2–3 years of Notice of Assessment from CRA
• Business license or registration
• Financial statements or accountant-prepared income summary
• Bank statements showing income inflow

Contract workers may need a letter from their agency or client confirming contract duration, income, and consistency of work.

What Other Documents Are Needed Alongside the Job Letter?

Most lenders won’t rely on a job letter alone. You’ll also be asked for:
• Recent pay stubs (last 2–3)
• T4s or Form 16 (last 1–2 years)
• Bank statements showing salary deposits

These are cross-checked against the job letter to verify consistency and detect any discrepancies.

What to Do If Your Employer Refuses to Provide a Letter

Some employers — especially small businesses — may be reluctant to write formal letters. If that happens:
• Explain why the letter is needed (for your mortgage)
• Offer to draft the letter yourself and ask them to print it on company letterhead and sign
• Alternatively, provide a combination of recent pay slips, bank deposits, and an email from HR confirming employment

Your broker can also write a note to the lender explaining the situation and supplement it with other documents.

How Long Is a Letter of Employment Valid?

Most lenders require the letter to be **dated within the last 30 days**. Anything older may be considered stale.

If your mortgage approval is taking time or your closing date is a few weeks away, your lender might ask for a refreshed letter just before funding.

Final Tips from a Mortgage Expert

A proper job letter might seem like a small step, but it can make or break your mortgage approval. Make sure it’s complete, signed, and on official letterhead. Double-check the income details match your pay stubs and that it reflects your job title and status accurately.

And if you’re self-employed or have a unique income structure, work with a mortgage broker who knows how to build a strong documentation file that speaks clearly to lenders.

Don’t let paperwork delay your dream home — getting your job letter right is a great first step.