Definition
An employment letter is an official document provided by the employer (on letterhead, signed and dated) confirming key employment elements: employee's full name, job title, nature of position (full-time/part-time, permanent/contract), start date, base annual salary, and any guaranteed variable income (bonuses, fixed commissions).
Mortgage lenders systematically require it to validate income declared in the application. It must be recent (generally less than 90 days before file submission) and come from the company's human resources or payroll department.
For contract or temporary employees, the letter must confirm the remaining contract duration and renewal probabilities. If the contract expires before the mortgage term, some lenders may refuse or require additional guarantees. Self-employed workers do not provide an employment letter — they replace this document with T1 Generals and business financial statements.