Step 1: Organizing your Mortgage Documents

The Most important step in preparing for your mortgage financing:

You should have a thorough and accurate review of all required documents in advance of applying for your mortgage. The previous US subprime crisis ended up erasing hundreds of billions of dollars from global capital markets and subsequently forever changed mortgage lending throughout the western world. Today, mortgage lending is scrutinized at a heightened level and so are all required documents.

We will help you ensure that you successfully produce the documentation requirements by preparing you in advance. This allows us to provide competitive financing while saving you the hassle and stress of a useless mortgage approval based on inaccurate information.

It is important to note that for the purpose of your mortgage application,partners at a law firms, medical professionals, and people who own 20% or more of a corporation are deemed as self-employed. Individuals who derive a large portion of their income from an investment portfolio or trust are also usually required to provide self-employed supplementary documentation. Senior executives and individuals with a personal taxable income in excess of $500,000 per year are also subject to the same income review that business owners face.

Being prepared with all of the documents listed below at the time of application will ensure a speedy and stress-free application process.

Depending on the type of mortgage you are applying for and how you earn your the majority of your income, you will need to organize and prepare a slightly different set of documents. Some are required before an approval can be issued and some are simply required prior to completion of your mortgage file with the lender. Documents required will vary depending on which of the following categories you fall into:

  • Residential Mortgage Refinance
  • Mortgage for Residential Purchase
  • Full Mortgage Pre-Approval (Income, assets, and liability details confirmed in writing)

Income Verification Documents

Verification of Employment Income

  • Recent Pay Stubs (dated within 30 days)
  • Letter of Employment (dated within 30 days)

Verification of Executive/Self-Employment Income

  • Personal Tax Returns (T1 Generals) – previous 2 tax years
  • Notice of Assessment (NOAs) – previous 2 tax years showing no income taxes owing
  • *In some situations, lenders may also require Business Financial Statements – most recent 2 fiscal years (Income Statement, Balance Sheet, etc.)
    Corporate Financial Documents such as Business License, Articles of Incorporation and/or Business HST Registration & Returns.

Mortgage for Residential Purchase (four units or less)

  • Completed Mortgage Application
  • Agreement of Purchase and Sale including all schedules for subject property, signed by all parties
  • MLS listing of subject property (Realtor should provide)
  • Confirmation of down payment
  • Lawyer’s Name and Phone Number
  • Valid ID is required for each borrower and must include both sides of 1 piece of government issued photo ID (Driver’s Licence, Passport, Citizenship Card), and 1 additional piece of ID (Birth Certificate, SIN Card, Major Credit Card, etc.)
  • Personalized VOID Cheque for the account to be used for mortgage payments

Mortgage for Residential Refinance (four units or less)

  • Completed Mortgage Application
  • Mortgage Statement, which includes the name of the lender, mortgage reference number, approximate mortgage balance, current mortgage payment, status of property tax account and mortgage renewal date.
  • Most recent Property Tax Bill listing annual tax amount and showing account is in good standing
  • Original purchase price and date
  • Estimate of Current Value: Most lenders will require an Appraisal Report to confirm property value
  • If existing debt is being paid from the proceeds of the new mortgage, an accurate and detailed Listing of all debts will be required.
  • Lawyer’s Name and Phone Number
  • Valid ID is required for each borrower and must include both sides of 1 piece of government issued photo ID (Driver’s Licence, Passport, Citizenship Card), and 1 additional piece of ID (Birth Certificate, SIN Card, Major Credit Card, etc.)
  • Personalized VOID Cheque for the account you wish to use for mortgage payments

Full Mortgage Pre-Approval

  • Completed Mortgage Application
  • Income Verification (If on salary – most recent Pay Stubs and current Letter of Employment. If hourly or highly variable income (investment banking, sales etc.) – T4 Slips and/or Notice of Assessments for the previous two years, If self-employed – Tax Returns (complete T1 Generals) and Notice of Assessments for previous two years)
  • Previous annual Mortgage Statements for each property currently owned
  • Previous year’s Property Tax Bill for each property currently owned
  • Proof of Down Payment via Bank Account, RRSP, Stock/Bond/Investment Statements, etc., showing your name

Additional Documents

In some cases additional documents may be required. Here are a few common scenarios:

  • You own other property/properties – Annual Mortgage Statements and Property Tax Bills for each property you own
  • You own real estate investment rental(s): Valid signed leases confirming rental income, signed tenant acknowledgements for leases outside of a one year fixed term lease, completion of Real Estate Investment Worksheet
  • If separated/divorced – a copy of the separation agreement confirming amount of spousal and/or child support payments

The best way to ensure a fast, stress-free mortgage financing experience is to complete your mortgage application file within FIVE business days of approval.

We look forward to helping you with your application!