What Do I Need to Apply for a Mortgage?

Your Mortgage Matters by Vancouver Mortgage Broker Rebecca Awram

To process the mortgage application, your mortgage broker will require a number of documents as soon as possible. While the exact requirements can differ very slightly from lender to lender, there aren’t usually too many surprises.

CONFIRMATION OF EMPLOYMENT

If you are employed by a third-party, then you will need to forward a job letter and a couple of recent paystubs. A typical job letter is written by someone in authority over you, is on company letter head and indicates your position, length of employment and your gross income.

If you are self employed, the documents requested will depend on the length of self employment and the nature of your income. The lender will often want to see a business license, or financial statements…. it also depends what documents you are supplying to document your income (see below).

CONFIRMATION OF INCOME

If you have been with the same company for a long time, often the letter and paystubs are considered sufficient; be prepared to also provide your Notice of Assessment from CRA for the previous two years, or T4 slips, or similar, depending on the lender’s specific requirements.

If you are self employed, documentation of income may include some of the following: previous two years Notice of Assessment; financial statements; corporate income tax returns; bank statements; and statutory declaration.

For borrowers with excellent credit and a down payment of at least 10%, there are also programs offered that have relaxed documentation requirements. Your mortgage broker can best describe in person how this might relate to your particular situation.

Documented proof of any other income, such as pensions, child support, spousal support, investment income, child tax credit, etc. Official statements or three months bank statements confirming deposit is usually considered sufficient.

CONFIRMATION OF DOWN PAYMENT

Lenders are incredibly concerned with the source of the down payment, and documenting that source. In particular, they want assurance that it was not borrowed, and that you are in possession of the required funds at the time of application. The documents you are required to produce depend on the source of your down payment.

– photocopy of monthly statement for the bank account the down payment is coming from, showing applicant’s name(s) and account number. Statements should be for recent three months, showing orderly accumulation of funds, if internet printouts are provided, your name and account number must be on the document to confirm ownership.

or – recent copy of R.R.S.P. statements
or – gift letter indicating down payment is a gift and non-repayable
NOTE: Some lenders require confirmation that the gifted funds are in the mortgage borrowers bank account prior to issuing the final approval.
or – Copy of Contract of Purchase and Sale for present home
and – Copy of mortgage statement showing total payout balance as of new completion date

IF THIS IS A REFINANCE OR EQUITY TAKE OUT

Then we will also require some information about your property, such as the civic assessment or property tax bill. If you are still in possession of the MLS listing from when you purchased, this is a very helpful document for your mortgage broker, it has all the picky details about your property on it.

Any information regarding your existing mortgage is required, along with a recent mortgage statement.

IF THIS IS A PURCHASE

Provide your mortgage broker with your realtor’s name, phone number and email address, and they will likely contact your realtor directly for a copy of the following:

– Copy of Contract of Purchase and Sale for new home
– if MLS listed – copy of MLS Listing for your new home
– if a detached home – copy of the Land Survey Certificate for new home (if applicable)
– if condo or townhouse – Lender may request Strata Document
– if low Loan to Value ratio – copy of Property Tax Assessment Notice for new home

UPON ACCEPTANCE

The lender will want to know which notary or solicitor you will be using…. in some cases, especially those involving private lenders, you must choose from their approved lender list.

A completed PAD form along with a void cheque, for the bank account that you wish the lender to take mortgage payment from.

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