Lenders need to see that your down payment has been in your account for a minimum of 90 days. They will scrutinize the sum as well, and if there are any irregularities or large deposits that are out of the ordinary, they will ask for clarity on them (it is not illegal to acquire money as a gift from family, but they will still ask).
If your money is coming from another country, lenders will want to see it in a CDN account for at least 30 days and can ask to see the foreign accounts as well.
If you’re receiving a gift from family (and YES it must be from family), then you’ll need to provide a screen capture of the deposit as well as a gift letter signed by you and whoever gave the gift. We can provide the gift letter after your mortgage is approved. Please note that the amount specified in the gift letter must match the amount deposited exactly.
If your money is coming from selling and investment, we’ll need to see the 90 day transaction history. It it’s from RRSPs, TFSAs, or elsewhere, the same applies.
If you’re using money from the sale of a property, it will depend if you’ve already received it. If you have, we’ll need a copy of the statement of adjustments from your lawyer and recent bank statements showing the sale proceeds deposited into your bank account.
If you’ve sold your place, but do not have the money yet, you’ll require a firm sale [LINK TO FIRM SALE FAQ] contract and your most recent mortgage statement. You should have a copy of your sale contract, but if you don’t, your realtor will be able to provide one. You’ll need the full contract with all the addendums.
If you don’t have any cheques, they can be provided by your bank or downloaded through your online banking as a pre-authorized Debit or Payment form, commonly referred to as PADs or PAPs. Also, it’s worth noting that it doesn’t matter if your account is with a different bank than the one doing your mortgage.
This form is can be obtained from the strata management company and it provides an overview of the strata lot and building. The document needs to be current and address items such as the contingency fund, strata fee, any legal proceedings, and any majority votes/resolutions. It often resembles a table of contents from a book. If there are any issues/items addressed in this form, you may or may not be asked for additional strata documentation, including AGMs, depreciation reports, financials, etc. There is a nominal cost to order one, which is determined by the strata manager. Allow at least seven days to avoid paying a premium to rush the documents.
Lenders will require the most up to date statement on your current mortgage, including your current mortgage balance, your name(s), the property address and mortgage details. This is a standard document that all lenders should be able to easily provide you – please ensure it is up to date. You can also use downloaded mortgage statements from your online banking account as long as the above mentioned information can be found on the statements.
This statement is provided by the city and shows the amount of property tax due for your property, along with any balance owing. Your city’s property tax department will be able to provide you with this.
Lenders will require the most up to date statement on your current mortgage, including your current mortgage balance, your name(s), the property address and mortgage details. This is a standard document that all lenders should be able to easily provide you – please ensure it is up to date. You can also use downloaded mortgage statements from your online banking account as long as the abovementioned information can be found on the statements.
The Notice of Assessment is a summary of your T1 General (tax return) that the government will send to you by mail or electronically after you’ve filed taxes. If you don’t have a copy, you can access yours online through a Canadian Revenue Agency (CRA) account. Please be aware that creating CRA account online takes time, as you will be required to receive passwords in the mail. The lender will require your NOA in its entirety, as it outlines any and all outstanding tax debt. Also, to avoid any delays, please ensure that you are submitting the most recent assessment available.
If you’re retired and receive a pension, you’ll receive a T4A that shows your gross taxable earnings. Otherwise, it’s the same as a regular T4. If you’re an employee for a company, they’ll provide you with a T4 that shows your gross taxable earnings for the year. By law, this must be provided to you no later than Feb 28th of the new year. If you receive multiple T4s for a given tax year, we’ll need all of those for your mortgage application. If you’re unable to find a copy of your T4, you can potentially ask your employer to provide another copy or check in with your accountant.
If you are an employee (not self-employed) a T4 shows your gross taxable earnings for the year. By law, this must be provided to you no later than Feb 28th each year. If you receive multiple T4s for a given tax year, you will need to provide all of them.
This is your actual tax return and is what you (or your accountant) send to the government each year when you file your taxes. It’s a large document and the lender will want the entire thing, typically as a PDF. If your taxes are not up to date, you will not qualify for a mortgage.
A pay stub will include your Year to Date (YTD) earnings, along with source/tax deductions, and will be issued by your employer. Even if you are paid electronically, your employer is required to provide you with one upon request. It cannot be handwritten and must be current within 30 days.
A LOE is a standard document in which your employer confirms your position, your time on the job, date you were hired, full time or part time status, and your salary (or hourly rate and guaranteed hours). It needs to be signed and dated by your employer, on company letterhead, and must include their contact information. Please note, a job offer or accepted contract does not suffice. Lenders require an LOE that is current within 30 days.