It doesn’t matter if you are looking to purchase your first home, your next home, or your twentieth home. Typically, the mortgage documentation required to secure financing will be the same. The earlier on in the process you can collect these documents, and provide them to your broker, the better.
So here we go! Here is a list of the most common documents that lenders require to secure mortgage financing.
Letter of employment – Written on company letterhead with a current date, your letter of employment should have your name, start date, position, and list whether you are full or part-time. It should also indicate your salary or the minimum guaranteed hours/week & hourly rate. The letter should be signed with the best contact information to allow for a verbal confirmation.
Pay stub or direct deposit form – This will confirm your income, and should match what is written on the letter of employment.
T4 slips – Typically, your last two years of T4s should work.
Notice of assessments – Your previous two years of NOAs will help to establish your annual income. We will be looking at your line 150.
Financial statements – If you happen to be self-employed, you will need to provide up to three years of financial statements or T1 Generals.
Down payment verification
Bank statements – You will need to provide 90 days of bank statements. This is to prove that you have had the down payment in your possession or have accumulated the funds through payroll deposits. You will want to make sure that your name and account number appear on the statements.
Gift letter: If some of the down payment is coming by way of a gift, you will have to provide a letter signed by you and the person gifting the money. Your bank statements will help to confirm this gift deposit in your bank account.
RRSP statements – If part of your down payment is coming by way of RRSP, you must provide a 90-day history from your RRSP account. If you are using the Home Buyers Plan, there will be an additional form to complete.
Agreement of purchase and sale – If your down payment is coming by way of a sale of another property, the contract indicating the sale price, and your current mortgage statement will prove the equity to be used for the down payment.
MLS listing: If you are working with a Realtor, please have a copy of the MLS listing. This helps us to verify the property details.
Purchase and sales agreement: If you have an accepted offer, you will need a copy of the purchase and sales agreement. This should include all amendments and counteroffers.
Survey: If you have one, send it along, if not, no worries.
Property tax assessment: If you don’t have a copy of the most recent property tax assessment, you can usually find this on the local municipality/city website. You will need to provide the most recent assessment.
Solicitor or notary information – Please provide the name of your lawyer/notary, the firm, and their contact information.
Mortgage statement – If you are doing a mortgage refinance, please provide a copy of your current mortgage statement.
VOID bank Cheque – This is the account that you will make your mortgage payments from. A pre-authorized debit form works just as well.
As each mortgage is different, the documentation to satisfy each mortgage will vary somewhat. This list is a great place to start, but please know lenders may require more mortgage documentation, depending on your specific financial situation.
If you have any questions, please don’t hesitate to contact me anytime!