Numerous papers to fill out when looking for a house to buy? Well, that’s the protocol for one to follow and acquiring a mortgage can seem like a big task. But luckily, it gets easier with many alternatives that help you buy a home. A very important piece of paper for a mortgage is a letter of employment, which is your job confirmation letter. In this blog, we are here to help you understand why this letter is so important and how to ensure you get one to get a mortgage.


Securing a mortgage is a significant milestone on the path to homeownership, and the coveted letter of employment serves as a key to that gateway. Understanding a letter of employment for mortgage isn’t much of a big deal. This crucial document validates your financial stability, a mandatory document required for leveraging a mortgage, which opens doors to your dream home. Picture it as the golden ticket, bridging aspirations and reality. You must win your lender’s confidence, and an employment letter can be very helpful. 

Understanding the Letter of Employment

Letter of Employment in Canada

A letter of employment is proof by your employer that you work for them. It is a key document when you’re looking to get a mortgage. Lenders need to see it to check how much you earn and if you can repay the mortgage. They require this as proof of evidence before they agree to lend you a large amount of money. The letter of employment for mortgage also checks that the salary details you gave for your mortgage application are correct. Lenders ask for this letter to make sure everything is in order before they say yes to your loan request. Read on to know the requirements to include in your letter of employment.

The Importance of a Letter of Employment in Securing a Mortgage

As mentioned before, a letter of employment for mortgage seeks to give your lender confidence. Notably, this document proves your capability to pay for the property. Thus, the lender scrutinises and does a background check for the same. An agreement is laid out and consented to only after fulfilling other requirements. Besides, this deed shows how stable your income is. The lenders tend to prefer the ones with more stable and genuine backgrounds. Additionally, it gives them a sense of security to proceed with the agreement with you. For instance, if you’ve recently begun a new job and your job situation isn’t steady, a lender might worry about whether you can pay your mortgage on time. Also, if you’re buying a house when interest rates are rising quickly, this could be a concern. Lenders might also check the kind of work you do to see if your job area is reliable and if your earnings have been steady over time.

How to Acquire a Letter of Employment?

To acquire a letter of employment, you must seek help from your company’s HR department. If the company policies allow, they could help you get the letter. Sometimes, it’s better to check with HR instead of asking your boss directly because many companies prefer to handle these letters through HR. Furthermore, we advise you to review the company guidelines by yourself. However, the HR team usually has a standard letter that proves you work there. 

Key Components for Your Employment Letter

Key Components for Your Employment Letter 

When creating a letter of employment, it’s important to include specific pieces of information. These details are part of the set letter of employment template. These are crucial details as they make your employment letter more reliable and convincing to the lender. Here’s what needs to be included:

  • Employer and Company Information

When you apply for a loan, the lender usually wants a letter from your job. This letter should be on the company’s official letterhead with the company’s name, address, logo, and contact details. It is to showcase its authenticity.

  • Employment Designation

The employment letter should include your designation, duties, responsibilities, and the duration of your working hours.

  • Employment Tenure At the Current Job

Your tenure in your current job and your background for the same, even if that refers to others, are absolutely important. Thus, it is always best to have a solid work background.

  • Your Financial Information

Your application letter for employment must also include your financial information, salary, payment structure, bonuses, etc.

  • Employment Structure

Your employment structure is if you are a part-time, a full-time or a seasonal employee. It also defines your tenure in the firm.

  • Date and Signature of the Employer

When you receive your letter of employment, it must include your employer’s signature and the date. It is a trivial point but necessary. Each lender has different requirements for approving a mortgage. If you follow these rules, you can get the documents you need. Most companies have the same letter of employment template for everyone.

Securing a Mortgage When You’re Self-Employed

Self-employment surely comes with quite many perks. One of these is that you are not required to have a letter of employment when applying for a mortgage. That is only applicable if you are someone receiving a salary. However, if you are self-employed, you must still show documents that prove how much money you make. It includes tax documents, financial records, bank statements, or other papers displaying your monthly earnings on average.


Most lenders have their set criteria before and during a mortgage agreement. This agreement also includes certain conditions and documentation. One of these is having a letter of employment. Knowing whether to trust you becomes clear when they know your background and understand your situation. Therefore, it’s wise to have your letter of employment for mortgage prepared if you’re looking to buy a property.

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Frequently Asked Questions (FAQs)

What is a letter of employment in Canada?

A letter of employment simply comes from your place of work and depicts your job title, company details, work hours, and more. It is a crucial document, especially when applying for a mortgage.

What counts as a letter of employment?

A letter of employment is a piece of proof to showcase your employment tenure, financial information, etc. It helps in agreeing to a mortgage as well.

How do I write an official letter of employment?

You need to follow a specific format when writing an employment letter. It should include the reason for writing, requested information by the employee, contact information, etc.

What is a job letter for a mortgage?

A job letter is similar to an employment letter. It includes specifications about the job role rather than the employee's information.