Which type of income generated from investments is generally accepted by lenders as eligible income?

Investment income is often considered eligible income by lenders because it is associated with financial assets that may generate regular cash flow. This type of income can include dividends, interest, or profits from the sale of investment assets. Lenders assess this income to determine an individual's ability to meet mortgage obligations. The stability and reliability of investment income are factors in how lenders evaluate a borrower's overall financial health.

While salary income, social assistance income, and rental income can be considered for mortgage eligibility, investment income stands out as a specific category that inherently signifies the potential for ongoing revenue due to ownership of financial assets. This context makes investment income a crucial consideration in the mortgage underwriting process, as it reflects an applicant's broader financial portfolio rather than just their earned wages or spectrum of assistance.