Notice of Assessment Definition
A Notice of Assessment or NOA, is a statement from the Canada Revenue Agency notifying the taxpayer of the amount of tax they owe, if any, the amount of tax already paid, if any, tax credits received and contributions to a Registered Retirement Savings Plan. If there is a refund owing, a cheque will usually be included with the NOA. If there is an amount owing payment information will be enclosed.
The Notice of Assessment is received after the taxpayer files their tax return and the return is reviewed by the Canada Revenue Agency. It is a two page document, showing the taxpayer name, taxpayer insurance number, tax year and tax centre. It will then provide a summary of income, deductions, credits, taxes previously paid, etc.
NOA and Mortgage Qualification
In mortgage practice, an NOA is usually a document required by lenders and their underwriters to verify the borrower’s tax status especially in the case that the individual is self-employed. It is useful in not only verifying the borrower’s income, but also verifies whether the borrower has an outstanding tax liability. Along with other documents verifying income, the NOA should usually be provided to the lender within 2 weeks of closing. Failure to provide the NOA can delay, or even reject, the borrower’s mortgage application.
Because the receipt of NOA’s is routine correspondence to taxpayers, a potential borrower may have misplaced or discarded their most recent NOA. Fortunately, you can obtain a duplicate copy by contacting the Canada Revenue Agency, or by logging into your account with them at http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html. If you have an account with Canada Revenue Agency, you can view and print your NOA’s for the past 11 years.
At FirstFoundation.ca, we want the mortgage process to run as smoothly as possible for our customers. We understand that lenders will require documentation of income, debt and other pertinent information necessary to process your mortgage application. That is why we have created a Required Documentation Checklist, identifying the documentation needed and dates in which it will be required. If you are having difficulty obtaining a document, contact us and we may be able to help.
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If you are interested in learning more about your notice of assessment, please feel free to contact us today!