Definition
Investment income (dividends, bond interest, capital gains) can complement or replace employment income for mortgage qualification, particularly for retirees or full-time investors.
Treatment by type: - **Interest and dividends**: A-lenders generally accept 100% if documented 2 years on T1 (Schedule 4). Some lenders apply a 70-80% factor for potential volatility. - **Capital gains**: more volatile, some lenders refuse or apply a 50% factor. Minimum 2 years of T1 required. - **RRIF/RRSP withdrawals**: RRIF withdrawals recognized as regular income if withdrawals are consistent over 2 years.
Documentation: T1 Generals + investment account statements from the last 2 years. The lender assesses whether the portfolio is large enough to sustainably generate the declared income.