REAL ESTATE PURCHASE
- Purchase Agreement
- Realtor MLS listing with Photo
- Proof of Closing Costs (1.5% of the purchase price)¹
CONFIRMATION OF YOUR DOWN PAYMENT
- Current Savings¹ or Investment Statement(s)¹ OR
- Sale of Existing Property (Firm Agreement of Sale) with Current Mortgage Statement OR
- Withdrawal from RRSP through Home Buyer’s Plan¹ OR
- Gift Letter²
- Employment Letter for each applicant (letter must be on company letterhead and indicate start date, full or part-time, position, salary or wage and eligibility for overtime). Over-time hours need to be verified and require additional documentation³
- 1 current(within 30 days) Pay-Stub or Notification of Pay Deposits for each applicant
- Last 2 years of T4s for each applicant if part time, on contract, on commission, or seasonal
- See below for self-employed individuals
- Proof of 2 years business for self (ie. Master Business License, HST registration etc…)
- Last 2 years of Notice of Assessments(NOA)⁴
- Last 2 years of T1 Generals (including Statement of Business Activities)
- Current Mortgage Statement
- Current Property Tax Statement (proof taxes are paid)
- Property Details: Original Purchase Price and Date of Purchase
- Signed Consent
- Photo ID: Drivers License or Ontario Photo Card or Canadian Passport for each applicant (ID can not be expired)
- Solicitor (Name, Address, Telephone Number)
- Void Cheque or Direct Debit Authorization Form (the bank account where the mortgage will be drawn from)
¹ If your down payment or closing costs are from your own resources then you must include a 90 day account history showing accumulation of the money. In Canada we are required by law, under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, to provide full proof of where all large deposits (over $2000) were obtained. If you are intending to deposit a lump sum into your account for the purpose of down payment please contact us immediately. “Under the mattress” or “saved at home” deposits will not be accepted and can effect your mortgage approval so please inform us of anything that may seem to be a concern so that we may address it accordingly. Your down-payment including any investment (ie.RRSP) money must be in your account no later than 15 days prior to closing.
² If your down-payment or closing costs are from a gift then you will need to provide a Gift Letter stating whom the gift is from, the total gift, the relationship to the person gifting the money (generally must be immediate family), the institution the gift is currently held and proof of this gift. The gift must be in your account no later than 15 days prior to closing.
³ If you are planning to use over-time hours to validate the income stated on your application, last 2 years of T4’s or NOA’s are required.
⁴ Don’t have your NOA’s? Call the Canada Revenue Agency at 1-800-959-8281 and have them send you an “Option C” for the last 2 years. An “Option C” has more detailed information than an NOA and arrives usually within 2 weeks. If you were to request a duplicate NOA it would take 4 months which may be time prohibitive. You can also access your “Option C’s” through the My Account link here.
Please make sure any documentation you send us (ie. account information, statements) has your FULL NAME printed on them otherwise they are invalid. Also, any document that has been altered(blacked out) or is not complete(missing pages) will not be accepted.
Try to submit required documentation all at once or in one package. This makes the collecting and packaging of documents for the lender easier. It also reduces the likelihood of omitting important information.
Every mortgage transaction is unique and although the above documentation is normally requested other documentation may be required. (ie. Separation Agreement, Statement of Affairs, proof debts paid, etc.)