What is a notice of assessment?
A notice of assessment is the summary the Canada Revenue Agency sends after it processes a tax return, confirming the income and tax figures it has on file. Rent-to-own providers in Ontario often ask self-employed applicants for one to verify their income.
A notice of assessment (NOA) is the document the Canada Revenue Agency (CRA) issues after it has processed a T1 income tax and benefit return. It shows the figures the CRA accepted for that tax year, including total income, net income, taxable income, and the tax owing or refund due. It also lists RRSP room and certain benefit or credit amounts. Each NOA is for one tax year, and it is the CRA's own record of what was filed, not a copy of the return you submitted.
The reason it matters in rent-to-own is that self-employed people often have income that does not appear on a pay stub or T4. Freelancers, contractors, tradespeople, and small business owners usually report income on a T1 General form with a self-employment statement attached. Many rent-to-own operators and their financing partners want independent proof that this income exists and is stable, and the NOA is the most widely accepted way to show it. Some lenders ask for the last two years, so a single year may not be enough.
Keep in mind that the NOA reflects what was assessed, so if an earlier return was amended or reassessed, the figures may differ from what you remember filing. Applicants who file late or have not filed in recent years may not have an NOA to offer at all. For context on which providers in Ontario work with self-employed applicants, see bad credit and self-employed rent-to-own providers.
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