Spring is in the air and things are heating up in the real estate market. To get prepared, not only do we recommend getting a pre-approval, but here are some of the documents you should be gathering.
Mortgage lenders require paperwork that verifies every facet of your financial life: income, debts, assets and more.
Here is a summarized list of the documents that are required when you apply for a mortgage. To simplify the process, we recommend that you gather them before you apply for a mortgage.
Notice of Assessments from the CRA for past 2 tax years
Letter of employment and current pay stub – if your income is wages, salary or commission based
T1 Generals (personal tax returns) for past 2 tax years – if you are commission based, self-employed or have rental income.
Business License/Articles of Incorporation – if you own your own business, must prove you have been in business a minimum of 2 years. Financial Statements and/or business bank statements may also be required.
Void Cheque – or PAD (PreAuthorized Debit) form from your bank
ID – Government issued photo ID (no health cards), some lenders ask for a 2nd ID
Documents Specifically for a Purchase:
Signed Purchase Agreement – including all amendments and fulfillment’s
Realtor MLS listing
Proof of Down Payment – bank statements, (with 3 months transaction history). If it is a gift from an immediate family member a signed gift letter will be required, along with proof of deposit into your account. Sale Agreement, if you have sold a property and are using the proceeds for the down payment.
Other Documents that may be requested:
Mortgage Statement – for any existing mortgage(s)
Separation/Divorce Agreement – This will be needed if you have ever been married.
Property tax bill – needed if the lender will be paying your taxes and/or to show taxes have been paid
Proof of fire insurance
Pension/LIF/RIF/Investment Statements –if income is coming from any of these sources (to show there will be continued income, T4s will be needed for this type of income as well)
Credit Card statements – may be needed if the balances, or a portion of, are being consolidated with the mortgage
Lease agreements for any rental properties you are using income from.
You will also need a lawyer to register the mortgage against the property.
Please note that the lender my not require all of these documents or may require more. Each lender has their own set of guidelines and it depends on the mortgage product that is right for you.