The main major roadblock that industry participants such as lenders, solicitors, notaries and mortgage brokers have is that there are unnecessary delays in getting requested documentation in to the lender. It takes some pre-planning to have these ready.
Documents can include a letter from your employer, current pay stubs, bank statements, proof of down payment, a gift letter, and more. Caroline will work with you to create a checklist and help you plan to stay on top of the details.
Hint! If you are self-employed, you’ll need to provide 1-3 years worth of T1Generals, possibly your company financial statements and/or a copy of your business license. Each case varies.
Hint! Here’s a sample checklist. Start collecting your documents as part of your preparation to apply for a mortgage or pre-approval. sample_applicationChecklist.pdf
Below is a list of documents that are required when you apply for a mortgage. However, every situation is unique and you may be required to provide additional documentation. So, if you are asked for more information, the sooner you provide the information requested, the better. It will help speed up the application process.
- Copy of signed sales contract and vendor disclosure
- If it is a rental property that you will continue to rent out - copy of existing leases/rental agreements if the property is occupied
- Names, addresses and telephone numbers of all realtors, builders, insurance agents, home inspectors, lawyers/notaries and other professionals involved
- Copy of Listing Sheet and legal description (if the property is a condominium please provide condominium declaration, by-laws and most recent budget, Meeting & AGM minutes for the most recent 6 months)
- Copies of your most recent pay-stubs or government income
- Copies of your last 1-2 years tax Notice of Assessment, called "NOA"s
- Self Employed applicants -T1 General and Statement of Business Activity for the past two to three years - usually (but not always)
- If including Alimony or Child Support income to qualify - please provide separation agreement or divorce decree/court order stating amount, as well as, proof of receipt of funds for last year
- If CPP or disability income - bank statements showing auto-deposits and/or pay stubs
- Additional requirements may exist for New Canadians- Ask Caroline for details
- Names and addresses of all employers for the last three years
- History of where you've lived for the past 3 years - addresses
- List of assets and liabilities, including any existing mortgages
- Debts and obligations you have. e.g. if you are paying alimony or child support, include marital settlement/court order stating the terms of the obligation
- Prepare a list of all names, addresses, account numbers, balances, and monthly payments for all current debts with copies of the last three monthly statements
Source of Funds and Down Payment
- Sale of your existing home – provide a copy of the signed sales contract on your current residence and statement or listing agreement if unsold (at closing, you must also provide a settlement/Closing Statement)
- Savings, checking or money market funds – provide copies of bank statements for the last 3 months
- Stocks and bonds – provide copies of your statement from your broker or copies of certificates
- Gifts – If part of your cash to close, provide Gift Letter - Caroline can provide a copy
- Based on information appearing on your application and/or your credit report, you may be required to submit additional documentation