Preparing Documents You Need to Submit For Your Mortgage Application
When you apply for a mortgage, you and your co-applicants need to have each of the following documents ready:
- Personal Information: Full Name, Date of Birth, Marital status, Number of dependents, Current address and phone number, Social Insurance Number.
- At least 3 years history of residences and employers (or work history if self-employed). Written explanation of any "gap" in employment.
- Your banking information (institutions name, address, type of accounts, account numbers)
- Your assets and their value (e.g. cash amounts, stocks, bonds, RRSPs, vehicles owned, real estate or other homes you own, etc.).
- Your liabilities (e.g. car loan, credit card balances, lines of credit, student loan, etc.).
- Void cheque for the account from where mortgage payment will be withdrawn
- Name, address, phone and fax number of the lawyer you will use for this transaction .
- Be sure to advise us about any past credit problems you may have had.
Additional Documentation required if purchasing:
- Offer to Purchase and MLS listing for the new property
- Address of new house and complete description of property - including legal description, property taxes, condo fees (if purchasing a condo) and if condo fees include heat, rental income (if it is a rental property that will be generating income for you).
- Offer to Purchase and all condition removals for the existing residence if you are selling it
- If it's a new construction, plans and specifications.
- Your realtor's contact information
Additional Documentation required if refinancing or renewing a mortgage:
- Current mortgage statement
- Pay-out statement from current lender if available
- Most recent property tax bill/statement
- Legal description of your property being financed
(you can find this on your original purchase agreement
or your property tax statement)
Income Verification
A lot of times, lenders require borrowers to have sufficient income and cash flow to service the mortgage as well as any debt obligations they may have. To prove income for yourself and any co-applicants, the following lists what most lenders typically require:
Salaried/Hourly Employee
- Job letter – stating your name, position, gross annual income, status of your employment (i.e. permanent, on probation, maternity leave, etc.) and start date. (If you are paid hourly, it should confirm your pay per hour, number of hours worked per week, and length of employment.) The letter should be on company letterhead signed by an authorized individual with his name, position and contact information. Any additional forms of remuneration (bonuses, allowances, etc.) should be mentioned if applicable.
- Three most recent paystubs showing year-to-date income
- 3 years of T4’s or Tax Returns (T1 Generals) – may be required depending on chosen lender
- Most recent 2 years' Notice of Assessment (NOA) to confirm no taxes owing – may be required depending on chosen lender
Self-Employed/Commissioned Worker or Professional
- 3 years’ Financial Statements to average annual net income – some lenders may allow add-back only of particular expenses such Depreciation, Capital Cost Allowance, etc. Add-backs allowed are specific to lender policies.
- Articles of Incorporation (if applicable)
- Most recent 2 years' personal Notice of Assessments (NOA) – may be required depending on chosen lender
- Most recent 3 years' Personal Tax Returns ( T1 Generals showing personal net income) - may be required depending on chosen lender
Other Income that may be used
- Investment Income – limited to interest, dividends or certain types of ongoing revenue received on a continuous basis.
- Capital gains resulting from one-time sale of a property can’t be used.
- Pension income
- Overtime, Bonus or Part-time employment income may be included as long as there is 3 years’ evidence of it showing in T4’s.
- Tips, Living-out Allowances (LOA) or portion thereof may be used depending on chosen lender.
- Car allowance may be included depending on chosen lender
- Rental Income – the portion of it that may be used depends on the guidelines of chosen lender.
Note: Notice of Assessment is the summary form Canada Revenue Agency sends after your income tax has been filed. It specifies what you claimed on your taxes last year. If you do not have a copy of your Notice of Assessment, you can call Revenue Canada at 1-800-959-8281 to obtain a copy.
Down Payment Verification
In order to make sure you meet lender and/or insurer guidelines for downpayment requirements, you will need to submit downpayment verification documents.
- If your downpayment is coming from your personal savings in your bank account, you must provide your three most recent months of bank statements showing your account number and your name as the account holder.
- If your down payment is coming from your investments (e.g. RSP, GIC, stocks, bonds, etc.), you must provide a copy of your most recent account statement for that investment.
- If your down payment is a gift from family or relative, a "gift letter" is required along with proof that the funds have been deposited into your bank account. Again, the bank statement you submit must show your name and account number on it.
- Withdrawal from RRSP through Home Buyer’s Plan
Other Documents
Once your mortgage is approved, the lender may require you to submit other documents to support conditions in your mortgage Commitment. Verification of funds for closing costs may be required among other things. We will inform you of any outstanding requirement should they exist.
