Documents

Here are some example documents that a lender typically requires once you have made an offer on a property.

Income verification:

If you have an employer and you have an annual salary:

From your income verification the lenderʼs goal is to see that you are currently employed, in a permanent position, your income does not fluctuate between pay periods and that there are deductions at the source.

Verification is to be provided by way of:

      • a pay stub
      • a signed letter of employment

Please note:

      • documents must be dated no earlier then 60 days from the current date
      • lenders are typically not able to use income from an applicant on probation
      • lenders cannot accept letters of offer

If you have an employer and you are non salaried (i.e. hourly employment):

From your income verification the lenderʼs goal is to find your average taxable income for the last two tax years. In addition, a lender will need to see that you are currently employed, in a permanent position and that you have deductions at the source.

Verification is to be provided by way of:

      • a pay stub
      • a signed letter of employment
      • T4 of Notice of Assessment for the last two years

Please note:

      • documents must be dated no earlier then 60 days from the current date
      • lenders are typically not able to use income from an applicant on probation
      • lenders cannot accept letters of offer

If you are self-employed:

From your income verification the lenderʼs goal is to see that you you do not have any income taxes in arrears, to see the source(s) of the income and your average taxable income form your last two tax years. Please note, if your most recent tax yearʼs income was lower then the previous year, they will use the lower income number.

Self employed applicants will verify their income by providing the lender with:

      • Notice of Assessment and T1 Generals (all pages) for the last two years

The lender may also require evidence of at least two years self-employment by one of the following:

      • Business license
      • Canada Revenue Agencyʼs Notice of Return Adjustment/Summary or a GST return
      • T1 Generals with Statement of Business Activities attached for a minimum of two years
      • Articles of Incorporation

Please note, lenders may also request two years of business financials if incorporated.

Down payment verification:

If from personal resources:

You are to provide verification, satisfactory to the lender, that the down payment is available from your own resources.

Verification is to be provided by way of:

      • three months of bank account history

Please note:

      • if the funds are held in one or more accounts, or funds moved to different accounts durning the three months, you must provide the most recent account history for each account
      • the statement or a combination of statements must show your name, the financial institutions name, the account number and the three months history
      • lenders will not accept documents with information blacked-out

If from a business:

You are to provide verification, satisfactory to the lender, that the down payment is available from the business.

Verification is to be provided by way of:

      • three months of business account history
      • confirmation that you own the business or are a shareholder
      • if incorporated, you must provide your Articles of Incorporation and if self employed, you must provide your Master Business License

Please note:

      • if the funds are held in one or more accounts, or funds moved to different accounts durning the three months, you must provide the most recent account history for each account
      • the statement or a combination of statements must show your name, the financial institutions name, the account number and the three months history
      • lenders will not accept documents with information blacked-out
      • if the business has multiple owners or shareholders, they may ask for additional information

If from a gift:

You are to provide verification, satisfactory to the lender, that the down payment is available as a gift from an immediate relative. Immediate relatives are defined as parent, child, sibling, grandparent, or guardian.

Verification is to be provided by way of:

      • a gift letter
      • one month of bank account history confirming you have received the funds from the gift provider

Please note:

      • you and the gift provider must complete the lenderʼs gift letter form
      • self-made gift letters will not be accepted

If from the sale of a property:

You are to provide the signed and accepted sale agreement for the property sold, and confirmation of the outstanding balances of any debts secured by the property being sold.

Verification is to be provided for property being sold by way of:

      • recent mortgage statement
      • sale agreement
      • MLS listing

Additional information regarding down payment:

YouTube: Down payment verification – 4 important points

Closing costs:

You are to provide verification that you have available from your own resources, in addition to the down payment, 1.50% of the purchase price to cover closing costs.

Verification is to be provided by way of:

    • three months of account history

Please note:

    • if the funds are held in one or more accounts, or funds moved to different accounts durning the three months, you must provide the most recent account history for each account
    • the statement or a combination of statements must show your name, the financial institutions name, the account number and the three months history
    • lenders will not accept documents with information blacked-out

Void Cheque or pre authorized debit form

Photo ID

  • must not be expired
  • heath cards are not accepted

Here are some example documents that a lender typically requires for a refinance.

Income verification:

Income – If you have an employer and you have an annual salary:

From your income verification the lender’s goal is to see that you are currently employed, in a permanent position, your income does not fluctuate between pay periods and that you have deductions at the source.

Verification is to be provided by way of:

      • a pay stub
      • a signed letter of employment

Please note:

      • documents must be dated no earlier then 60 days from the current date
      • lenders are typically not able to use income from an applicant on probation
      • lenders cannot accept letters of offer

Income – If you have an employer and you are non-salaried (i.e. hourly employment) or salary plus bonus:

From your income verification the lender’s goal is to find your average taxable income for the last two tax years. In addition, a lender will need to see that you are currently employed, in a permanent position and that you have deductions at the source.

Verification is to be provided by way of:

      • a pay stub
      • a signed letter of employment
      • T4 or Notice of Assessment for the last two years

Please note:

      • documents must be dated no earlier then 60 days from the current date
      • lenders are typically not able to use income from an applicant on probation
      • lenders cannot accept letters of offer

Income – If you are self-employed:

From your income verification the lender’s goal is to see that you you do not have any income taxes in arrears, to see the source(s) of the income and your average taxable income from your last two tax years. Please note, if your most recent tax year’s income was lower then the previous year, they will use the lower income number.

Self employed applicants will verify their income by providing the lender with:

      • Notices of Assessment and T1 General for the last two years

Photo ID

  • must not be expired
  • health cards are not accepted

Void cheque or pre authorized debit form

Recent mortgage statement or renewal notice

Recent property tax bill

Proof of fire insurance

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