Why so many mortgage documents you ask? With the recent government rule changes, lenders are asking for WAY more documentation before they will lend you money. Mortgage lenders need to protect their investors and help ensure our Canadian housing market remains strong.
Yes, it may seem like a pain but ask yourself this – would you lend a large amount of money to somebody without proof they have income stability and/or the means to pay it back? Pretty sure your answer is no (at least ours is!).
Below is a list of typical documents lender and mortgage insurers request – although documentation can vary by lender.
Questions? Just ask us, we’re here to help! Email us at email@example.com
Income – lenders are looking for proof of income stability.
- 2 years of Income Tax Returns (T1 General), Business Financials and CRA Notice of Assessments. Often it’s best to have your accountant e-mail them to us so no pages are missing.
- Lease agreements
- T1-General tax returns with the Statement of Real Estate Activities. If you don’t claim your rental income let us know as this may affect how your mortgage is approved.
- Proof of the rental income being deposit on a regular basis into your bank account.
Guaranteed Employment Income
- Two of recent pay stubs dated within the last 30 days.
- A letter of employment on company letterhead confirming your position, start date, guaranteed pay and hours, if you are seasonal or contract and any specific information that relates to your income stability. Lenders will call your employer to verify the letter and ask for more information as possible. (Call us for a sample job letter)
- 2 Years of CRA Notice of Assessments
Commission, Overtime, Seasonal, Contact or Bonus Income
- Two recent pay stubs dated within the last 30 days.
- Job letter
- 2 years of Full T1-General income tax returns
- 2 years of CRA Notice of Assessments
Liabilities – We will see most of your consumer credit accounts on your credit report however we may require additional paperwork such as current mortgage statements, property tax statements and proof of payment, separation agreements, child support payment proof, etc.
Down Payment & Closing Costs
- The last 90 days of savings history. Any larger deposits have to be sourced.
- Gift Letter (some lenders have prescribed forms)
- Statement showing gift deposited into your account
- Property sale contracts and mortgage statements
About Documentation from Financial Institute
- It is worth noting that documents from financial institutes are ownership proof. E-statements are the best as they typically have your name, account number and the providers details already on the statement
- Screenshots work if the providers logo/name are clearly shown on them as well as the account holders name. If the account number only shows then you will have to provide an additional document from the provider with both your account number and name.
- If you are having your account history printed at a teller please have them stamp the paperwork.