Throughout your mortgage application your mortgage specialist will be asking you for A LOT of documents. Let’s go through the standard documents you may be asked for so you can have them organized and on-hand for when the time comes. The documents required will also depend on your personal circumstances, which is why it’s important to have a discovery call with your broker so they have a better understanding of your situation.
What EVERYONE needs to provide
Government-issued Photo Identification. This requirement makes sense because lenders are giving you a lot of money, so they want to make sure you are who you say you are.
Notice of Assessments: Your two most recent NOA’s provide an overview of how much money you’ve made annually. These assessments include all your taxable income sources. To retrieve these, you can go into your Canadian Revenue Agency (CRA) online portal or ask your accountant for a copy. Be sure it has your name and address on to verify it’s yours.
Lawyer/Solicitor Information: Your lawyers have a critical role in funding your mortgage. To facilitate the process we ask for your lawyers contact information in case we need it.
Salary/Hourly Employee?
Employment Letter: We require a letter from your employer stating your position, income, and how long you have been with the company.
When submitting to the lender, they require a letter that has been issued within the last 30 days.
Make sure the date, your name, and all the info mentioned above is included in the letter.
Pay Stubs: We request your two most recent pay stubs to cross reference with the income stated on your job letter. When you’re ready to pull the trigger on your mortgage application, we may need updated pay stubs since sometimes the application process and house-shopping stage can be lengthy.
T4s: Your last two years’ T4s from all your employers provide another confirmation of the income you have been receiving. It may seem like a lot of income documents, but this is a very important aspect of your eligibility from a lender’s perspective because they need to know you can afford the mortgage payments.
Self-Employed?
T1 Generals: Your last 2 years’ T1s in full document form (should be approximately 40 pages), if you don’t have it on hand your accountant should be able to forward it to us!
Business Financials: For incorporated businesses we require your last two years’ business financials to confirm your business is financially stable.
If You Own Other Properties
Property Tax Statements: this confirms the amount you pay in property taxes every year and contributes to your debt service ratios.
Mortgage Statements: If your property is still mortgaged, we use your mortgage statement to get all the info we need - such as outstanding balance, monthly payments, etc.
Strata Fees: If your other property is part of a strata complex, we need confirmation of how much you pay in strata fees every month.
Lease Agreements: If you use your other property as rental income, we need the lease agreements to confirm how much income you receive monthly and the duration of the lease. It can be very difficult to claim Airbnb income on a mortgage application, so it’s easier
Down Payment Verification
90 Day Bank Statements: from the bank account with the funds you will be using towards your down payment. For this reason, it’s WAY easier to keep your down payment funds in ONE account for at least 3 months before your mortgage funding.
Gift Letter: If a family member or close friend has gifted you funds to use for your down payment, you will need to provide a gift letter stating the amount gifted. Many lenders provide their own gift letter that you can use rather than drafting one yourself.
Sale Waiver/Sale Agreement: If you are using funds from a property you are selling, you will need to provide the sale waiver and/or sale agreement to confirm the property is being sold for the price listed.
As you can tell there are ALOT of documents required throughout the mortgage process and this may not be all of it (scary, I know). As your mortgage specialist, we walk you through the process and ensure the lender has all the documentation needed to fund your mortgage. So don’t fret, our expertise will make this journey as seamless as possible!