Getting approved for a mortgage is more challenging today than it was five years ago. Qualifying requirements have changed, and there is more emphasis on verifying your information in your application. If this isn’t your first mortgage, then don’t be surprised if you’re getting asked for documents you didn’t have to provide before. While each mortgage situation is unique and requires different compliance documents, some standard verification documents are common to every mortgage approval.
MOST COMMONLY REQUESTED DOCUMENTS:
CREDIT REPORT
Typically, the mortgage professional you’re working with will order your credit report and submit it to the lender with your mortgage application.
It is rare for a lender to accept a credit report provided by the borrower that they have ordered themselves.
GOVERNMENT-ISSUED IDENTIFICATION
This identification is required to verify your identity and also to ensure the correct spelling of your full legal name. Information on your driver’s license should be current and accurate.
In Nova Scotia, there were recent changes made NS regarding Driver's License and Photo ID cards - please ensure yours are up to date (see links)
All income tax paying Canadians have this 9-digit number, also known as your SIN. Providing it when your broker is ordering your credit report ensures the report generated is for you and not for someone with the same or similar name and birth date.
DOWN PAYMENT CONFIRMATION
If the down payment is coming from your own funds, then the lender requires a 3-month history via bank statements or a statement of investments using GICs and RRSPs. If there is a large deposit in your account within the 90 days, an inheritance for example, then lenders will need to know where the money came from and will require verification.
All personal and financial statements should clearly show: name(s) / address / account # to verify proof of
ownership.
- For gifted funds, you will need a gift letter from an immediate family member. Often lenders will ask for proof the funds have been deposited to your bank account. If your funds are borrowed, then you’ll be asked for paperwork to confirm the amount and terms.
INCOME CONFIRMATION
You will usually have to provide your two most recent pay stubs, a Letter of Employment, in many cases your last two years of tax returns (T1 General), Notices of Assessment and CRA statement to confirm no outstanding taxes.
AGREEMENT OF PURCHASE AND SALE
If you are purchasing, the signed contract is required along with the property’s MLS sheet, (PDS) Property Disclosure Statement, any amendments to contract, deposit confirmation and copy of current property tax bill. Your Realtor will draw up the contract and can provide the documents.
EXISTING PROPERTY INFORMATION
If you are on the title of any other properties, you will have to provide documentation to confirm the monthly costs related to that property. This will include current mortgage statement(s), current property tax bill(s) and copy of your home insurance policy.
LAWYER CONTACT INFORMATION
If your lender requires a lawyer to close your mortgage, you will need to provide the contact details including the name of the law firm, phone number, fax number, office address and email address. If you need a lawyer, I would be happy to refer a number of them to you.
APPRAISAL
Property appraisals are becoming more common these days. The lender wants to know the real value of the home, independent of its listing or negotiated price, to compare against what you’ve agreed to pay and to make sure the house is, in fact, worth the money. There may be a cost to you ($250+) and it varies depending on region, property, and lender requirements.
As an experienced mortgage professional, I will guide you through the mortgage process. By working with me, you have a trusted advisor and problem solver who takes the time first to understand your needs. Both short-term and long-term, I will recommend the right mortgage and options available.
*Note: Additional documents may be needed depending on complexity and lender requirements.
i.e.: Signed separation or divorce agreement; RRSP HBP withdrawal form; Lawyer Statement of Adjustment or Trust Ledger; 2 Year Company Financials; Lease agreements etc.
The more complete your documentation, the faster I can provide borrower confirmation to move forward with funding and closing your mortgage.
Most lenders request all documents be provided 10-15 business days prior to the closing date.
I'm available to discuss your mortgage questions. Call me today and let's talk.
Glen Estabrooks
Mortgage Broker
Office: 902.835.3407
Mobile: 902.489-4898
Email: glenestabrooks@mortgagegroup.com