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Documents You Need to Apply for a Mortgage

Documents You Need to Apply for a Mortgage

Shopping for a new home can be exciting, especially when you’ve found your dream home, put your offer in, and have it accepted. This means it’s time to go to your Oakville mortgage broker to apply for a mortgage.
There are several documents that you will need to have with you when applying for a mortgage, and it’s a good idea to get these together beforehand, so as not to hold up the process. Different lenders will have their own requirements so you may want to check with them to make sure you have everything needed.

Proof of Employment

For those who earn an hourly or salary wage, this part is fairly straightforward. In most cases, your lender will accept a letter that has been signed by your employer. This should be done on your company’s letterhead and should state your position or title, the time you have been at the job, as well as your hourly wage or annual salary. In some instances, the overtime you are paid may be considered as well.

A lender will accept a current pay stub instead of a letter, but it needs to show the pay period, rate of pay, net pay, gross pay, and any deductions taken out of each payday. If you have been at your current employment for less than 2 years, lenders may request information from your previous employment as well.

Commissioned Employees

If you are paid solely on commission, your pay from one pay period to the next can vary a lot. In these instances, you will be required to supply additional information, such as a letter outlining your terms of commission from your employer, along with proof of earnings for the last 2 years. A copy of your T4 is often sufficient.

Self-Employment

It’s believed that being self-employed restricts you from getting approved for a mortgage, but this isn’t the case. A lender will require verification of your income and that you submit at least 2 years of financial statements that have been prepared professionally. You will also need a T1 General and any associated schedules that you have filed with Canadian Revenue. Also acceptable is a Notice of Assessment.

Other Income

If you own rental properties, pensions, or receive child support payments, this is considered “other income” and you will need to provide details for that. It’s best to ask your Oakville mortgage broker what documents are needed in these cases.

Proof of Down Payment

In situations where your down payment is being paid as a gift or by a donor, you will need to confirm this is not a loan. This usually entails a letter from the donor and proof of the funds they have sent you.

Pre-Approval Documents

If you thought ahead and were pre-approved for a mortgage you just need to bring the pre-approval documents with you.

Property Documents

Any documents relating to the property being bought will be required:

• Copy of the accepted Purchase and Sale Agreement
• Copy of the listing sheet
• For condos, condominium declaration that shows recent budget and by-laws, if applicable
• Address of the property you have purchased, including postal code and legal description
• All contact details of your realtor, lawyer, and builder if applicable
• Heating costs
• Property tax estimates

Banking Information

Lastly, and most important, is your banking information. This will include account numbers, contact information, and transit numbers. If you have a pre-approval, they will have already collected this information. You can make things smoother by visiting your Oakville mortgage broker to help get a pre-approval.

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