In the market for a new home? You probably won’t be paying cash for it, which mean you’ll need home financing.
Applying for home financing may seem daunting, but actually, we do most of the work, and it costs you nothing. What we do need from you though are a few documents to verify your income and financial status.
Income
For example, if you have an employer, you’ll need a letter from them on company letterhead confirming your employment. It should include your name, position, salary/hourly pay rate, and the name and title of the person signing the letter.
You’ll also need two recent pay stubs, as well as 2 years of Notice of Assessments from Canada Revenue Agency if you’ve accumulated significant amounts of overtime.
Finally, you’ll also need your T1 forms for the last two tax years.
If you’re self employed, it’s a bit trickier, but we can still help.
Assets
If this isn’t your first home, bring your mortgage and property tax statements for any other properties you own. Also bring statements for any investments you have, including RRSP.
Purchasing a home
If you’re buying a home (rather than refinancing a mortgage or consolidating debt, for example), there are a few more documents you’ll need to bring in:
- Fully-signed purchase and sale agreement
- Including any amendments, schedules, and waivers
- MLS listing
- Including photo of the property
- Condo documents
- If applicable
- Any one of the following proof of down payment documents
- Sale agreement for your current home
- 90 days worth of savings or deposit account statements
- 90 days of history for investments (including RRSP)
- If the down payment is a gift, you need a letter from the gifter, as well as a bank statement showing the money was deposited in your account.
Refinancing a home
On the other hand, if you’re refinancing your current home (whether for some renovations, an investment, or some other reason), bring the following documents:
- Current mortgage statement
- Current property tax statement with proof of payment
- Current homeowner insurance policy
Consolidating debt
If you’re consolidating debts, bring these documents with you when you meet with your agent:
- Loan statements for all the loans you want to consolidate
- Line of credit statements
- Credit card statements
Miscellaneous
Finally, depending on your situation, you may also need the following:
- Lease agreement if you’re renting
- Separation/divorce papers
- Proof of condo fees
- Two years of company financials
In addition to traditional income verification and down payment paperwork, we will also need to verify your identity, so please bring a copy of your driver’s license and your social insurance number. We’ll also need your signature. All of these allow us to get a credit report.
Some lenders may require even more paperwork, so be prepared to provide this as quickly as possible. The more cooperative you are, the smoother the mortgage process will be.
This might seem overwhelming, but we’ll be here with you every step of the way, and we can answer any questions you have.