The following are examples of the documents required during the mortgage approval process:
An Employment Letter indicating how long you’ve worked at your current job, your position and title, salary and/or hourly wage (note: hourly employees need to indicate the guaranteed number of hours worked per week)
Most Recent Pay Stub
As Overtime, Bonuses and Shift Differentials are not considered guaranteed income, the lender will require 2 years worth of both T4’s and Notice of Assessments (aka tax returns)
Applicants on Maternity Leave may use their returning income so long as an employment letter confirming the return date and salary/wage are provided
Income Self Employed (2 years or more):
2 years of personal T1 Generals
2 years Notice of Assessments (aka tax returns)
2 years Company Financial Statements
Proof of Income Taxes paid and up to date
Income Self Employed (less than 2 years):
Documents required will vary according to your unique situation, please contact us for more information
An Employment Letter indicating how long you’ve been employed, base salary (if applicable), and all commissions earned year to date
2 years Proof Of Commission either through Year to Date Pay Stubs, T4A’s, or Notice of Assessments
Child Support and Alimony:
A copy of the Separation or Divorce Agreement indicating required payments
Child / Universal Tax Credit:
Copy of Statement(s) confirming credit amount
3 months Bank Statements confirming credit deposits
Proof of Down Payment
A complete three-month overview of the account(s) (chequing, savings, mutual funds, RRSPs, etc.) in which your down payment is currently being held (see the Money Laundering and Terrorist Act of Canada)
Sources for deposits of $1,000.00 or more (excluding payroll) need to be proven
Down Payment sources can include and or all of the following combinations (please reach out to us should you have any questions):
Multiple Accounts – If your Down Payment is spread across several accounts (i.e. chequing, savings, TFSA), you will need to a 90-day history of each account, along with proof of ownership (print out or void cheque supplying name and account number). Bank Statements must remain unaltered.
RRSPs – A 90-day history of the RRSP along with proof that the RRSP has been cashed. We recommend waiting until you’ve made an offer to purchase, and we’ve secured your financing to cash your RRSPs.
Gifts – A print out of the account showing the balance before and after, as well as proof of gift deposited into the account. We will also provide you with a gift letter that must be signed by both you and the person gifting the funds.
Sale of Assets (i.e. a vehicle) - A print out of the account showing the balance before and after as well as proof of the sold asset deposited into the account. You will also require asset Proof of Ownership and a Sales Contract.
Sale of Property – An Unconditional Contract of Sale pertaining to the old property, and a copy of the mortgage statement showing the current balance and how much equity is available.
Note: Bridge Financing Is also available
Other Properties (I.e. Rental properties and/or any other existing properties) – A copy of the mortgage statement showing the current balance, property address and payments. You’ll also require a copy of the property tax statement and leases (if it’s a rental property), and your T1 General (showing Line 126: Statement of Rental Income).
Secured or Unsecured Line of Credit or Loan – A copy of the statement confirming the loan amount/ credit limit, the current balance and required minimum payments.
Down payments of 20% or less will require proof of funds for closing costs (i.e. Land Transfer Tax, Legal Fees and Disbursements, Inspection Fees, etc.), which typically range from 0.5% - 1.5% of the home’s overall purchase price. A letter from the lawyer can also be used to confirm legal fees.