For most of our clients, finding the right mortgage solution to meet their requirements is usually the easy part. Collecting of documents always seems to be the biggest obstacle. What most do is get a pre-approval, or they even obtain an approval or an actual commitment. But beware.
A commitment that is “subject to” or “conditional upon” can bite you in “the you know what” if you are not diligent about collecting and providing the required documentation. Always, always, try to have all, if not most of this information available before you apply for a mortgage. It will save some stress and heartache later on.
Lenders require paperwork that verifies every facet your financial picture (i.e. – they cannot take your word for it). This includes taxable income, assets, credit obligations and more.
Forget about trying to escape it. It will not matter which lender or broker you choose. It will not matter if you are the most perfect borrower with excellent credit, fully verifiable income and a net worth 10 times the amount of the mortgage you are applying for. It will not matter if you are applying for the best rate with one of Canada’s top lenders or a tiny second mortgage with a private lender. You will need to produce documents.
We have assembled a Top 10 list of “Must Haves” to obtain your mortgage and ensure the process goes smoothly. Here we go!
- Photo Identification – Driver’s License, Front and Back – verifies identity.
- Secondary Identification – Social Insurance Card, Passport, Birth Certificate, Citizenship Card (if you are not a Canadian Citizen, always provide a copy of your Permanent Resident Card, Front and Back in addition to the above)
- Pay Stubs – Provide most recent pay stubs (last 2) for anyone paid salary or hourly wages.
- Last 2 years Notice of Assessments and T4’s to document employment and earning history. (if Self Employed or Commissioned – Add Last 2 years T1 Generals, FULL COPY)
- Employment Letter for anyone paid salary, hourly, commissioned. For self-employed, provide Articles of Incorporation (full copy) or Master Business License. Also provide last two years financial statements if self–employed.
- Most recent bank and asset statements (ALL PAGES) for a period of 90 Days, three (3) months – evidence of sufficient assets for down payment, closing costs and reserves, as well as identifying source of origin for monies deposited.
- Fully Executed Agreement of Purchase and Sale for the property you are buying along with the Realtor’s version of the MLS listing.
- If refinancing – A copy of your recent mortgage statement or statements if you have more than one existing mortgage (less than 30 days old), tax bill, insurance policy and recent statements for any debts you wish to pay out during the refinancing.
- If you have limited credit, provide alternative sources of credit confirmation – 12 months of bank statements to confirm monthly payments on at least 2 items (telephone bills, rent, utilities, insurance payments, etc.)
- Name, address, phone, fax and email address of your lawyer.
Here’s a more comprehensive list for when you are ready to purchase or refinance. Required Supporting Documents
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