Generally, these are the documents that will be required by the lenders. In most cases, we will require some of the documents specified here. If you have any questions with the documents, please just let us know and we can advise. Again this is just a guide, not what is 100% required.
Income Documents
Employed
Employment Letter and most recent Pay Stub. The employment letter should state how long you have worked at your job, your job title, salary amount or an hourly wage. If hourly employee, the letter should guarantee the number or hours worked per week.
If you have any Overtime/Bonuses/Shift Differential, or any income that is not guaranteed, the lender usually requires a 2-year average of T4’s to use this income.
If you are on Maternity Leave, we can use your return-to-work income. We would need an employment letter confirming the date you are returning to work, and your income when you return.
Self-Employed for 2 years or longer
2 years T1 Generals (personal tax returns), along with 2 years Notice of Assessments from the CRA, and Company Financial Statements for the most recent year.
Self-Employed for less than 2 years
Contact us for specific documents that will be required.
Commissioned Sales
Employment Letter confirming the length of employment, any base salary, plus commissions earned year to date.
Proof of 2 years commissions via T4A Slips, Year to date Pay Stub, or Notice of Assessments.
Retired / Long Term Disability
Most recent 2 years T4A Slips for any pensions currently collected (CPP, OAS, Private, Disability etc.), along with 2 most recent Bank Statements confirming pension deposits.
If private Pension/Disability, the lender will request a Letter from the insurance provider outlining the monthly payment amount, and expected duration of payments (original approval letter will suffice).
Child Support / Alimony
Copy of Separation/Divorce Agreement confirming payments. Copy of Statements confirming payment amount. Along with 3 months full Bank Statements to confirm deposits.
Child Tax Credit / CCB
Child tax credit Payment Schedule from the CRA for the most recent year (4 page document), along with children’s Birth Certificate(s) to confirm their age is 13 years or younger.
Income from Rental Property
Copy of Rental Agreement, along with proof of payments via 3 months full Bank Statements confirming deposits.
If you do not have a rental agreement, we can get a Market Rents from an appraisal company.
Down Payment and Closing Costs Documents
Proof of down payment. Due to the strict Money Laundering and Terrorist Act of Canada, you are required to provide a full 90-day history of the account or accounts (savings, checking, RRSP, mutual funds etc.) in which your down payment currently is. For any deposits over $1,000, the source of these deposits must be proven, excluding payroll.
Down payment can come from a combination or any of the examples below.
Multiple Bank Accounts
If your down payment is in multiple accounts (checking/savings/TFSA) we will need a 90-day online print off of each bank account and proof of account ownership (via void cheque or home screen print off showing name and account number). *The bank statements can’t be altered in any way (example: blacked out).
RRSP
90-day transaction history of the RRSP account (online is fine) and proof of the RRSP’s being cashed. Please wait to cash your RRSP’s until after you have made an offer and we have secured your financing).
Gifted Funds
Gift Letter (provided by our office) filled out and signed by you and the family member gifting you the funds.
Proof of the Gift Deposited into your bank account along with full 90-day transaction history on the account.
Sale of an Asset (like a vehicle)
Proof of ownership of the asset and sales contract, along with proof of sold asset deposited into your bank account via 90-day transaction history on the account.
Sale of Property (Bridge Financing is Available)
Unconditional Sales Contract of the property being sold. Along with the current Annual Mortgage Statement showing the remaining balance to confirm equity available.
In some cases a Secured Line of Credit can be used for down payment on a new home. The HELOC statement would need to be provided to show available balance.
Closing Costs
When using less than 20% for down payment on your purchase, we must prove that you have enough funds available for closing costs (Legal fees, home inspection, appraisal etc.). The number required is 1.5% of the purchase price of the home. If you do not quite have 1.5% available (on top of the down payment) we can use a letter from your lawyer confirming exact legal fees.
Additional Properties Owned Documents
Copy of most recent annual Mortgage Statement confirming mortgage balance, payment amount and property address.
Copy of most recent years’ Property Tax Bill from the city.
Copy of current Rental Agreements (if rented).