A job letter is a document provided to an individual by his or her employer. This document is often required by a lender, in addition to other documentation, to verify an applicant’s employment as well as income. The following is a sample of a job letter. A legend is provided to explain each section of the letter. To be acceptable the job letter should contain all of the information identified in the legend. It is important that a lender/broker/agent review the job letter to ensure that it contains all of the necessary information, as well as to confirm that it is authentic. If there are any spelling errors the broker/agent should review the document carefully. If the lender/broker/agent has any doubts regarding its authenticity he or she should verify its contents by:
- Ensuring the company exists. Perform a Canada 411 search (www.canada411.com) to verify that the company is listed. If it isn’t the broker/agent should contact the borrower for further information. The broker/agent can also visit the company’s physical address to determine if it is actually there.
- Contacting the employer using the contact information found in the job letter to verify its contents.
Regardless of whether the broker/agent finds any reasons to suspect that the letter is not authentic, he or she should verify the information found in the job letter.
A: Company Letterhead, including logo (if applicable) and contact information. Ensure that this information is correct by verifying it using Canada 411, calling the contact number(s) and/or visiting the physical location.
B: Date: The job letter needs to be recent in relation to the application. If the job letter was written before the broker/agent took the application a current pay stub should also be obtained to ensure that the applicant is still employed by this employer. If the job letter is over one month old the lender may require an up-to-date job letter.
C: Re line. This line may or may not be present, depending on the policy of the employer.
D: To line. If it is addressed to a specific individual, that individual should be the broker/agent or lender. If it is addressed to another individual the broker/agent should confirm the identity of that person and the reason for the other name. It may be a job letter that was supplied to another broker/agent or lender.
E: Position. The job letter must contain the applicant’s position, and if he or she is full-time, part-time, seasonal, temporary, contract or on probation.
F: Date of employment. The job letter must contain the date that the applicant was first hired.
G: Income amount. The job letter must contain the amount of annual income earned by the applicant, and if it is salary, hourly or commission based. Any additional income, such as bonus income, must be listed separately from the salaried income.
H: Writer’s information. The writer of the job letter should be clearly identified so that he or she may be contacted to verify the letter’s information.