If you are looking to purchase your first home, your next home, or your twentieth home, lenders will require certain documentation to prove different aspects of your file. Generally, the list of documents are similar from lender to lender, but of course some lenders can choose to require less, more, or different documents than others. The earlier on in the process you can collect these documents, and provide them to your broker, the better. Some documents may be required up front during the pre-approval stage. Some will come later. Of course, we will walk you through the entire process when you reach out to work with us.

So here we go, here is a list of the most common documents that will be required to secure mortgage financing.  

INCOME VERIFICATION (Employee):

Letter of Employment – Written on company letterhead with a current date, your letter of employment should have your name, start date, position, state that you are not on probation and list whether you are full or part-time. It should also indicate your job status and income details. The letter should be signed with the best contact information to allow for a verbal confirmation.

Recent Paystub - This will confirm your income, and should match what is written on the letter of employment.  

T4 Slips – Typically your last two years T4s should work.  

Notice of Assessments – Your previous two years of NOAs may be required as well.

T4A Slips (Pension/If Applicable) - Your previous two year slips for Canada Pension Plan, Old Age Security, Work Pension. You will also need current bank statements showing the pension income deposits.

INCOME VERIFICATION (Self Employed/Sole Proprietor):

Personal Full T1’s (two most recent years) – these are the documents that accountants typically submit to the CRA to file ones taxes. Lenders want to see all pages including the Statement of Business Activities, and Statement of Real Estate Rental if applicable.

Notice of Assessments – Your most recent two years of NOAs should match the incomes showing on the T1’s.

INCOME VERIFICATION (Self Employed/Incorporated): - you should be able to ask your accountant for this full list

Personal Full T1’s (two most recent years) – these are the documents that accountants typically submit to the CRA to file ones taxes. Lenders want to see all pages including the Statement of Business Activities, and Statement of Real Estate Rental if applicable.

Notice of Assessments – Your most recent two years of NOAs should match the incomes showing on the T1’s.

Two most current year’s financial statements – these should be prepared by an accountant.

Copy of your Certificate of Incorporation/Notice of Articles and Shareholders – this is to prove business ownership

DOWN PAYMENT VERIFICATION:

Bank Statements – typically lenders want to see the most recent 90 days of bank statement transactions to show that you have had the downpayment in your possession or have accumulated the funds through payroll deposits. You will want to make sure that your name and account number appear on the statements.  

Gift Letter – If all or part of the downpayment is coming by way of a gift, you will have to provide a letter signed by you and the person gifting the money. The amount written on the gift letter will have to be deposited to your bank and substantiated on the bank statements.  

RRSP and Investment Statements (If Applicable)– If part of your downpayment is coming by way of RRSP, you will be required to provide a 90-day history from your RRSP account. If you are using the Home Buyers Plan, there will be an additional form to complete.  

Agreement of Purchase and Sale – If your downpayment is coming by way of a sale of another property, the contract indicating the sale price, and your current mortgage statement will prove the equity to be used for the downpayment. Depending on when the sale is completing, the lender may also want the Statement of Adjustments from the lawyer/notary office to prove the proceeds from sale.   

PROPERTY DETAILS (Subject Property):

MLS Listing and Property Disclosure Statement – If you are purchasing a property through a Realtor, please have a copy of the MLS listing and PDS so we can verify the property details.  

Purchase and Sales Agreement – If you already have an accepted offer, please provide a copy of the purchase and sales agreement including all amendments and counteroffers.   

Strata Documents – some lenders require very little, some lenders require many. This is situational at time of an accepted offer and we’ll be sure to send you and/or your realtor a full list.

PROPERTY DETAILS (Non-Subject Property):

Recent Mortgage Statement and Home Equity Line of Credit Statement (if applicable) – Dated within the last 30 days, including your name, account number, property address and current mortgage details.     

Recent Municipal Property Tax Assessment – If you don’t have a copy of the most recent property tax assessment, one can usually be found on the local municipality/city website. The most recent assessment will be required.  

OTHER DOCUMENTATION:

Strata Documents (If Applicable) - Last 6 months of council minutes, most recent AGM minutes, current financials, current Form B and confirmation of monthly strata fees Unit Monthly Fees in AGM minutes or Bank statement showing monthy payment of strata fees.     

Rental Income (If Applicable) - Copy of a current lease agreement and 90 days bank statements showing rental income deposited.  

Current Years Canada Child Benefit Statement (If Applicable/Using to Qualify) - We will need a copy of your current CCB statement, copies of birth certificate(s) and a current bank statement showing the deposit of your CCB.  

This is by no means an exhaustive list fore every lender, but it does give a good indication of what documents will be required depending on your file details. We are here to help you through the process, so feel free to reach out and let us walk you through it!  

Written by the DLC Marketing Team and Horner Mortgages.

Danny Horner

Danny Horner

Mortgage Broker

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