Mortgage Documents Required For A Mortgage Approval

DOCUMENTS REQUIRED

FOR A MORTGAGE APPROVAL

Jackie Woodward // Mortgage Broker // TMG // 780.433.8412 // [email protected]

DOCUMENTS REQUIRED FOR A

MORTGAGE APPROVAL What is required to get a mortgage approval is more extensive than it

was five years ago.

Not every mortgage is alike and neither are the document requirements.

Here is a list of the most commonly requested documents you will be

asked to provide;


DRIVERS LICENSE OR PASSPORT

This document is required to verify your identity and also to ensure the correct spelling of your full legal name.

It is important the information on the driver’s license is

current and accurate.


SOCIAL INSURANCE

NUMBER All income tax paying Canadians have this 9 digit number

also known as your SIN.

Providing it when a lender is ordering your credit report ensures the report generated is for you and not for

someone with the same or similar name as you.


SOCIAL INSURANCE

NUMBER If you are in Canada on a work permit or have landed immigrant status, you would have a SIN number starting with a ‘9’ and it is

important for the lender to immediately be informed of this.

Given the lenders all seem to have different rules and guidelines under their New to Canada programs you want to know right away if

you need to apply for a mortgage with a different lender.


PURCHASE CONTRACT

This document is usually only required by the lender when purchasing a property or under a special program when one person refinances a jointly owned home in order to

buy the other party out in the case of a relationship breakdown.

Ensure the offer to purchase documents are clear as your lender will require a legible copy for their file and often after faxing back and forth for changes and initials they

are difficult to read.

The lender will also require the MLS listing sheet for the subject property you are purchasing, however, if not available, you will be asked to provide property details.


LAND TITLE If you are refinancing your property a current land title will likely be

requested during the mortgage application process.

Have your property legal description on hand as it is usually the lender or mortgage broker who will order the title search. This

information can be found on a recent property tax assessment or bill. In the case of a property purchase, it is the lawyer who would be

conducting the title search.


DOWNPAYMENT CONFIRMATION

This documentation requirement varies depending on the source of your downpayment funds.

For money you have saved over a period of time, the most recent 90 day transaction history is usually required. Ensure you can also provide details and history of any

large deposits into that account over the last 90 days.

The lenders will not accept documents where anything is “blacked out” and you must also ensure you confirm ownership of the accounts by providing both the account

numbers and names on the accounts.


DOWNPAYMENT CONFIRMATION

For gifted funds, expect to provide a gift letter from an immediate family member as well as proof the funds have been deposited to

your bank account.

If you’re borrowing your downpayment, be prepared to provide paperwork that confirms the available balance and minimum

payment amount.


LAWYER CONTACT INFORMATION

If your mortgage lender requires a lawyer to close your mortgage transaction, you will need to provide the contact details of whom you want to

work with.

Contact information includes law firm, phone number, fax number, office address and email, if possible.

Your realtor, lender or mortgage broker can refer you to a lawyer they know

and have worked with if you don’t already have a real estate lawyer.


CREDIT REPORT

Normally, 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

ordered themselves.

If you have a limited credit history, your lender may allow you to provide an alternative credit source and some acceptable examples may be a letter from your landlord confirming no missed rent payments or confirmation of some other form of monthly payment that you’ve been making for 12 months or

more.


INCOME CONFIRMATION

The exact requirements depend on how you are employed, however, you can expect to be asked for some

sort of documentation to verify you can make your mortgage payments.

Requested documents differ for borrowers that are

employed versus self-employed.


INCOME CONFIRMATION

For employed borrowers, you will be asked to provide a job letter and recent paystub.

If you earn overtime or bonuses, you will be asked for the

above AND at least 2 years Notice of Assessments or T4’s.


INCOME CONFIRMATION For self-employed borrowers, the document

requirements vary depending on the lender you are working with as well as the program you are being

approved under.

I suggest speaking with a mortgage professional about what your specific financial situation and requirements.


INCOME CONFIRMATION

Keep in mind the programs available for self-employed individuals vary with the different lenders and if you are declined by one lender,

you may very well be approved by another one who has different rules and guidelines for the self employed person.

Be aware, a good majority of the programs for the self-employed

request you have no personal income tax owing to Canada Revenue Agency.


CONDO DOCUMENTS

Condo documents include but are not limited to;

-  Condo Reserve Fund Study -  Annual General Meeting Minutes

-  Condo By-Laws


CONDO DOCUMENTS

This applies only to condos. The lender or the lawyer will most often require the recent reserve fund study as well as minutes of the most

recent annual general meeting.

These documents allow the lender to determine if the condo board is running the complex responsibly and effectively. If a property is

being mismanaged, it can result in expensive special assessments or other costs being passed onto the borrower and owner of the unit.


EXISTING PROPERTY INFORMATION

If you are on the title of any other property or properties of any sort, you will likely have to provide documentation to confirm the monthly

costs related to the property.

As you own it, or even a part of it you are ultimately responsible for 100% of its costs. The lender needs to ensure you can qualify to

support the new financing you’ve applied for as well as the costs of any existing responsibilities you may have.


DOCUMENTS REQUIRED FOR A

MORTGAGE APPROVAL This list consists of the most commonly requested documents I see on

mortgage approvals these days. Of course, there are exceptions to the norm.

I can’t emphasize enough how much benefit you can get from working with an experienced mortgage professional of your choice.

Not only can they guide you through the mortgage process, they can also work with you and the lender to come up with reasonable and attainable

mortgage approval document requirements.


Mortgage Questions? Let’s Chat!

Jackie Woodward Mortgage Broker TMG & Mortgagegirl.ca Call 780-433-8412 Email [email protected] Follow @ mortgagegirlca

Mortgage Documents Required For A Mortgage Approval

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