05 Mar Basic Documents Your Mortgage Broker Will Need You to Provide When You Buy a Home
Thanks to Jenn Widney from the Erin Kelly Mortgage Team for providing this list!
- Job letter and pay stub for all applicants: All applicants must provide a letter from their current employer on company letterhead. This letter must include your name, date of hire, job title, and salary/pay structure. *If your salary is based on an hourly wage, the letter MUST include the number of hours you are guaranteed per week.* Lastly, the letters must be signed and dated by a supervisor or HR person. Contact information including phone number must be included for the HR person as all letters will be verified. The pay stub must be recent, include the company name and your name, and show YTD pay.
- 2 Years Notice of Assessments (NOA’s): We require copies of your past two years NOA’s from the Canada Revenue Agency that you would get when filing your taxes. The most important page of this document for mortgage purposes is the page that includes your Line 150 total income. In some cases with self employed applicants, we may need to see 3 years worth of NOA’s as well as your T1 General from the most recent tax year.
- Self employed applicants: If you are self employed, we will require copies of a valid business licence and/or copies of your incorporation documents and/or copy of your GST Assessment. We also need to see your T1 Generals for the past one or two years.
- Properties Owned: Copy of Mortgage statement(s), Copy of Property Tax bill(s), Copy of Lease agreements (where applicable) Legal Land Description (Lot/Block/Plan)
- Completed offer to purchase/purchase agreement: We will need a copy of the signed and accepted purchase agreement including the MLS listing (if applicable). If the home is under construction with a builder, we will require a list of standard specifications as well as a floor plan.
- Condo documents: If the property being purchased is a property, we may need copies of the condo budget/ proposed budget. The budget must state how much condo fees will be for the unit as well as whether or not heating is included in the fees.
- 3 months history on the down payment money: We require bank statements for 3 months showing the accumulation of the down payment money. If the money is in an RRSP/Savings account, bank statements will do but they must include the account number as well as your name for verification purposes. If the money is going to be gifted from a relative, let your mortgage professional know and they will be able to provide you with a copy of a gift letter for you to get signed.
- Closing costs: We will require verification in the form of bank statements that you have available 1.5% of the purchase price of the property to cover the closing costs for your mortgage. This money must be in addition to the down payment money, and must come from your own resources (not gifted/borrowed etc.)
- Appraisal: In some cases, we may need to order an appraisal on the property to verify the value. The appraisal will normally cost anywhere from $200$ 400 depending on the property, and this cost must be covered by the applicant by either credit card or cash at the door. The appraisal must be ordered by your mortgage professional (In cases where you would like to pay for the appraisal with a credit card, your mortgage professional will require your credit card number, type, expiry, and security code to be able to order the appraisal for you).
- Two pieces of ID: We will need a copy of your driver’s licence AND another piece of valid government ID (Passport, Alberta Health Care Card, etc.)
- Void Cheque: We will need a copy of a void cheque for the account that you would like your mortgage to be drawn on.
- Lawyer/Solicitor Information: We will need the name of the lawyer you will be using to help with the closing of your mortgage. In addition, we will require the firm name, address and phone number as well as the name and phone number of a contact person at the firm if it is someone other than the lawyer (if applicable). If you do not have a lawyer you prefer, we encourage you to ask friends or family for referrals. Sometimes, your realtor or builder will have a referral source for you. If you would like a list of lawyers from your mortgage associate, we would be happy to provide you some names to try as well.
- Signed Separation Agreement: This must include schedules of all financial obligations and agreements.
- Divorce Agreement: This must include schedules of all financial obligations and agreements.
- Child Support Agreement: In the case that children were involved in a divorce/separation agreement, a copy of the Child support agreement may be