Understanding the purpose and function of the primary documents will help you navigate your tax planning more confidently. It can be time-consuming and stressful to gather all the necessary income documents, keep track of document names, and where you can go to find each one, especially if you’re a first-time homebuyer who has never had to access them before.
All things considered; this can especially be a very stressful time for anyone buying their very first home. However, it’s possible to make life simpler when collecting all the information needed by lenders, such as a Notice of Assessment (NOA) and T1 General.
Often, there’s lots of confusion surrounding different mortgage qualification documents.
In light of that, we’re taking our microscope to two forms in particular: Notice of Assessment (NOA) and the T1 General to help break things down for you.
There’s a lot to cover, so let’s take a closer look at what these documents are and just how they can help you get a great mortgage.
1- Notice of Assessment:
A notice of assessment is an acknowledgment that your tax return has been received by the Canada Revenue Agency. It acts as a kind of receipt to show that your tax return has been received and reviewed. This is a commonly requested document in the mortgage industry. This is a two-page document issued by the Canada Revenue Agency (CRA). Any Canadian taxpayer will receive it at the end of a tax year.
A Notice of Assessment is completed by the Canada Revenue Agency after you file your taxes. Once you have filed your taxes you will receive a copy of a Notice of Assessment (NOA) from CRA via mail. The statement will tell you how much income tax you owe the CRA. This document confirms several things including the amount of income claimed and how much tax you paid in the year and whether or not there is a balance owing. Your NOA will show you the date your return was assessed and whether you have a refund, amount owing, or a zero balance.
An NOA is a critical document because it gives you the status of your tax return and alerts you to any potential problems so you can take steps to remedy them.
2- T1 General Form?
The T1 General Form is also called the Income Tax and Benefit Return. It is the document used by Canadians to file their personal income taxes.
The form is a summary of all the other forms you complete for your income taxes and is made up of your provincial or territorial tax (except for Quebec), your total income, your net income, your tax payable, your deductions, your non-refundable credits, and more. When you file your taxes, this form is used to apply for benefits like the Canada Child Benefit, or refundable credits, such as the GST/HST tax credit.
It is generally at least 4 pages long and you must ensure you submit all pages to your Broker when it is requested.
There are slightly different requirements when completing this form depending on which province or territory you resided in for the tax year in question.
You will need to provide information on the following when filing your T1 General:
1- Notice of Assessment
There are three ways in which you can obtain a Notice of Assessment:
Let’s take each one in turn:
You just need to head to the Canada Revenue Agency’s “My Account” service on its website. Here you can see your Notice of Assessment issued by the CRA once it has looked at your T1 General.
If you already have an account, you simply sign in on the CRA website. If you don’t, you can register for an account and follow the site’s simple steps. You’ll find your NOA under the tab called “tax returns” on the government website.
You can also check your NOA’s status, i.e., if it’s ready or not, and you can edit your details here in the “My Account” section.
For example, if you move home, change your contact details or amend any bank details for direct deposit purposes.
If, on the other hand, you prefer doing things the old-fashioned way, you can still acquire your Notice of Assessment by regular post.
To do this, you’ll need to call the CRA at 1.800.959.8281 and ask them to mail you a copy to your home address.
Suppose you like to multitask and like to complete as many tasks as you can on the go. In that case, a simple way to access this critical piece of information for your mortgage qualifications is to download the MyCRA App.
Like the online account on the CRA website, you can change your personal information and edit other parts of your profile. You can also see any tax balance owing, statements, mail from the CRA, and more.
This app is for individuals filing tax returns, not businesses. You can download the MyCRA app via the CRA website, but you’ll need to have registered for an online account first.
One thing to note: this is not a standalone app that’s available in the usual ways via Google Play or the Apple app store. It’s an internet web browser-based application.
2- T1 General
You can find your T1 General for the current year (and the past 11 years) on the CRA website.
The person who submits your tax return should provide you with a copy of your T1 General as soon as your return is complete. If you file your own taxes through software such as TurboTax or UFile, you can find your T1 General there.
If you are having trouble finding your return, you’ll need to contact the agency or individual who completed your return to request a copy.
Without these documents, it will be difficult for you and your broker to calculate the amount of mortgage you can apply for.
Lenders will be unable to have a complete picture of your financial position without these income documents.
If you’re having trouble collecting the documents for your mortgage application, you’re not alone! It can be difficult to keep track of document names and where you can go to find each one, especially if you’re a first-time homebuyer who has never had to access them before.
We hope you’ve found this outline about Notice of Assessment (NOA) and T1 General useful.
Aspiring homeowners needing more information on these topics and other income documents can contact the Filing Taxes team of professional accountants today at 416-479-8532. start their journey towards owning a home. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.