Archives

List of Documents:

• For employed individuals – An Employment Letter stating start date, position, and compensation details (base salary or if hourly rate per hour and how many hours per week). If any overtime, bonus, commission income that applies, it is very helpful if the letter states how much total overtime/bonus/commission income was over the past 2 years. We will also need a most recent pay stub. These are standard documents, however very rarely, the bank might also ask for a T4 for the last 2 years or Notices of Assessment for the last two years. In most cases, just a Letter of Employment and a most recent pay stub is sufficient.
• Self-employed individuals typically provide Notices of Assessment for the past 2 years and full T1 Generals for the past 2 years . The general rule is you need to be self-employed for a minimum 2 years before you can apply for a mortgage at a bank. The bank may also ask to see confirmation of self-employment status during the last 2 years via either Article of Incorporation (if incorporated), or business licence, or GST returns for the past 2 years, or Statement of Business Activities for the past 2 years which is part of their T1 General.

List of Documents:

• For the down payment confirmation– three months of bank statements for each account the down payment funds are coming from. It has to be full statements with transaction history, not just the balances. If the down payment is a gift from family, we will prepare the gift letter (we provide the form) that will need to be signed by the Gifter of the funds and the money will need to be deposited into your account prior to possession.

List of Documents:

The bank may ask for additional documents which will vary based on your unique situation and under what mortgage program you are applying:

• If you are new to Canada, we will need to provide a copy of work visa or PR card
• If you are buying a house with 5% down, we will need to confirm that on top of the down payment you also have extra savings for “closing cost”. This amount is estimated at 1% of the purchase price. This is the money you will spend on legal costs, moving, etc.
• In some cases, the bank will ask to confirm that a credit card balance has been paid out prior to possession.

As your mortgage advisor, we will be able to tell you in advance what documents will be required to provide in your situation. We have a lot of mortgage experience and we per-qualify our clients for a mortgage before we submit the application to the bank. You will know in advance what will be required to receive an approval.