Your Notice of Assessment is the most important paper you get each year

YourNoticeOfAssessment.jpgDo you know where your last Notice of Assessment (NOA) is filed? If you're like most Canadians, you either stuffed it in the back of a drawer somewhere or recycled it after you checked the amount of your tax refund. Here are 5 reasons you should keep track of it:

  1. Your NOA is like a receipt you get for filing your taxes. If there were ever a dispute about your filing, this document would be essential proof that the Canada Revenue Agency reviewed what you submitted.
  2. If you participate in the Home Buyer's Plan – borrowing from your RRSP to buy or build a qualifying home – your statement will be on your NOA. It will show your remaining balance and the minimum required repayment for the next year.
  3. Your NOA contains your RRSP deduction limit and contribution room. If you want to maximize these savings, you'll need to know these amounts that aren't readily available anywhere else.
  4. If any changes or corrections were made to your tax return, they will be explained on your NOA. You should review your notice to see if there is additional information you can provide or details you disagree with, and then take the necessary steps to contact CRA.
  5. If you are planning on buying a property, refinancing your home, opening a line of credit, or taking out a loan, most lenders will ask for your current NOA. Since taxes owing take precedence over any other kind of debt, this is an important piece of information for any financing you consider.

If you can't locate your NOA, or if your NOA shows taxes due and you can't locate a receipt for payment, you can still get that information. CRA offers a service to retrieve your tax information by accessing and choosing to log in or register. You'll be asked for your Social Insurance Number, birth date, and postal code, and you'll need your tax return from the previous year to supply specific information. If you're working with Auxilium for your home purchase or refinance, our team can answer questions you have about this procedure.

Our team believes in making your mortgage process as smooth as possible. If you're ready to get started, give us a call for your free consultation with a broker at 250-590-6520. You can also visit us at 307 Goldstream Avenue during regular business hours. We can arrange an appointment at our Fort Street office, or evenings or weekends, to work with you.