Definition
Workers compensated entirely on commission (real estate agents, insurance brokers, pharmaceutical representatives, car salespeople) have a 100% variable income structure.
Mortgage treatment: - **Standard A-lender**: 2 years of T4 or T1 Generals. Qualifying income is generally the average of the last 2 years (or the lower of the two if declining). - If commissions include expense reimbursements (car allowance, office expenses), these gross amounts may be on the T4 but don't represent net income — the lender will deduct them. - Variable commission income exceeding 25% of total income triggers 'variable income' treatment at most lenders.
Tips: document the nature of the position, commission contracts, 3-year income history if possible, and stability of the employer or sector.