List of Documents Required For a Typical Mortgage in Real Estate Transection
List of documents which you will need to provide to your lender the least, to get your mortgage approved.
Documents required are grouped into 3 major categories here;
Purchase and Refinancing: This includes your primary residence and rental properties in general.
Here you will discover documents you will need to provide to a lender to get your purchases and refinancing files approved.
Just like the headlines suggest!
List of Documents you will need to prove your identification and down payment:
- Copy of fully signed and Accepted Purchase agreement
- Copies of all ammendments and schedules
- MLS Listing
- Copy of the initial deposited cheque
- Confirmation of acceptance of the deposit cheque (from buyers agent/brokerage)
- Condominium documents
IF YOU OWN INVESTMENT PROPERTIES:
Documents required for every investment property you own;
- Latest mortgage statements
- Property Tax Statements
- Rental agreement
- You may be required to provide rental sheet showing monthly cash flow.Please speak to your mortgage broker for more details.
- T1 Generals for last 2 years to prove investment properties income and expenses on annual basis
Primary Residence:
- Subject properties latest mortgage statement
- Subject properties tax statement
IF OWN INVESTMENT PROPERTIES:
- All properties latest mortgage statements
- All proeprties Property Tax Statements
- All properties all Rental agreements
- If owns more than 3 properties, you may be required to provide rental sheet showing monthly cash flows
- INCOME DOCUMENTS TO PROVE RENTAL INCOME – T1 Generals for last 2 years if applicable
To prove income, any borrower employed on full time or part time basis is required to provide following documents;
- Recent Job Letters (within last -3 months)
- 2 Recent pay stubs
- Last 2 years of Notice of Assessements (NOA)
- If NOA is not available, T4 and last pay stub showing Year to Date gross income earned with the employer
- All part time employees are required to provide last 2 years of NOA
Below is the short list of documents required as Proof of Self Employment. Banks can ask more if these documents do not satisfy them.
- Master Business License
- Proof of sole propriatorship
- Articles of Incorporation
- Proof of HST/GST #
- 6 months business account bank statements
- Accountant prepared Business financials for last 2 years
- Lenders may ask T1 Generals or T2 Generals as well for last 2 years
As per lenders general rule, 2 pieces of government issued, valid identifications are required.
One has to be photo id and another identification can be a non photo id.
Health card is not acceptable for the purpose of proving your identificstion for mortgage purposes.
Below are some of the acceptable form of photo ids;
- Valid Drivers license
- Valid Passport
- SIN CARD
- Proof of Immigration
Many real estate buyers run into trouble when they fail to provide appropriate proof of down payment. Please know all Canadian banks and lenders require 90 days proof of all the sources of down payments being used to buy realestate.
You are encouraged to prepare following documents upfront so that you don not run into problem during the process of home buying;
- 90 days statements of Banks Chequing / Saving accounts
- RRSP Statements
- TFSA Statements
- signed gift letter by the donor and receipent is required when gifted down payment is used to purchase primary residence. Every bank and mortgage lender has their own protocols on what document types are required. This is in your best interest to dicuss with your mortgage broker when and how to prove the gift money to the lender.
NOTES:
- Borrowed funds can not be used to purchase realestate
- Gifted funds from overseas, requires documentaion on source of funds, account ownership details and relationship between gifter and receivers
Please do not hesitate to speak to your mortgage broker in advance to have required documents in place.