Mortgage Application: Some Documents You’ll Need
Fast-track your mortgage process by starting to hunt down some of the paperwork you’ll eventually need to provide. This is a guide to the documents that are most generally required by lenders (scanned and emailed copies are fine). Please note that this is not a 100% complete list: the amount of documentation needed for each mortgage is unique to the borrower, the lender, the property in question and the complexity of the file. If you have ANY questions or are unable to find or provide certain documents, just let my team know.
To Verify Your INCOME
- Employment Letter. The Employment Letter should be addressed To Whom It May Concern, written and signed on company letterhead by your supervisor or HR person, stating how long you have worked at your job, your job title, salary or hourly wage. If you’re an hourly employee, the letter should state the guaranteed number of hours you work per week.
- Your most recent pay stub.
- If you have any Overtime/Bonuses/ Shift Differential or any income that is NOT guaranteed, the Lender will usually require a two-year average of T4’s and copies of your Notices of Assessment for the past two tax years.
- If you are on Maternity Leave, I can use your returning-to-work income. Your Employment Letter in this case would have all of the information above, plus a confirmation of the date you’re returning to work and your income when you return.
- Employment Letter. As above, but also describing your length of employment, your base salary if any, and the total commissions you have earned for the year leading up to the date of the letter.
- A year-to-date paystub.
- Proof of two years’ commissions filed as T4A’s.
- Notices of Assessment for the two most recent tax years.
Self-Employed for Two Years or Longer:
- The most recent two years of your personal T1 General and your Notices of Assessment.
- Accountant-prepared financial statements for your company for the most recent two fiscal years.
Self-Employed for Less than Two Years:
- Please contact me to discuss specific documents that will be required.
Child Tax Credits/Benefits:
- Statements confirming amount.
- Your most recent three months of bank statements, confirming deposits.
- Your separation or divorce agreement, confirming payments.
Income from Rental Property:
- Your lease (if you don’t have a lease, we can attain market rent rates from an area appraiser).
To Verify Your DOWN PAYMENT (if you’re purchasing a property)
Due to the Money Laundering and Terrorist Act of Canada, you are required to provide a full, recent 90-day history of the account or accounts (savings, chequing, RRSP, mutual funds etc.) in which your down payment currently resides. The source of any funds over $1,000.00 (excluding payroll) must be provable.
Of course, a down payment can come from a combination of any of the examples below. Any questions just call me.
- If your down payment is in multiple institutions and/or accounts we will need a 90-day print-off of each account, plus proof of account ownership (via void cheque, or for example an online banking screenshot showing the account number and the accountholder’s name). The account statements CANNOT be altered in any way (example: blacked out). Remember that mortgage brokers and lenders are bound to confidentiality.
- You’ll need to be prepared to explain any large deposits.
- 90-day history of these accounts (online is fine), plus proof of an RRSP being cashed for the purpose of a first-time home purchase. (Please wait to liquidate your investments for the down payment until AFTER you have made an offer and I’ve secured your financing!).
Sale of a Current Property:
- Unconditional (subjects removed) contract of purchase & sale of your current property.
- Recent mortgage statement showing current balance to confirm equity available.
- A current title search, to ensure all known mortgages/liens are accounted for.
- Bridge financing is available if you require funds before the final sale of your current property completes.
Sale of Another Asset:
- For example: sale of a vehicle.
- 2 week print off of bank account showing the previous balance; then proof of the proceeds of the sold asset deposited into account with according change of account balance.
- Proof of ownership of asset; and contract of purchase & sale.
Borrowed Via a Secured or Unsecured Line of Credit or Loan:
- Statement confirming current balance, credit limit and minimum payments of the loan/line facility.
- Print-offs evidencing the drawing down from the line/loan (and resulting change in the balance owing) and the deposit of the borrowed funds into your bank account (and the resulting increase in your account balance).
- If you are considering “borrowing (some of) your downpayment from yourself,” it’s advisable to make the above-described transfer at least 90 days before needing to evidence the down payment.
Gifted Down Payment:
- A Gift Letter, filled out and signed by you and the person (usually immediate family) gifting you the funds. I will provide you a lender-specific form letter when that time comes.
- A copy of the actual gift cheque.
- 2 week print off of bank account showing the previous balance; then proof of gift deposited into account and then balance after gift is in account.
- The agreement/judgment and proof of deposit; or, a lawyer’s confirmation that funds are held in trust.
- If you are in the early stages of a separation and a sale of the family house is being contemplated, please seek advice from your lawyer then contact me to discuss options.
- Legal documentation supporting the bequest to you, plus proof of deposit.
To Verify Your CURRENT PROPERTY (if you are refinancing or renewing)
- Your most recent mortgage statement, confirming balance, payment and property address.
- Your “Form B Mortgage.” You’ll probably find this in the files given to you by your lawyer, the last time you got a mortgage on the home.
- Your most recent property assessment notice (the one mailed to you; this link is just for your info).
- Your most recent property tax bill and if applicable, proof of payment.
- If you are renting out a portion of or all of your property, the lease.
- A current appraisal. I will help you with this as part of the overall mortgage process.