Mortgage Financing Application – How To Present It To Your Banker

A mortgage application must be well prepared to get fast mortgage approval. We will explain to you, depending on your situation or profile, what documents you will need to prepare your mortgage financing application and what the banks expect.

So what do I need to do to submit my mortgage application?

Present easy-to-read documents

• Present your mortgage application properly with clearly legible documents.
• Use a good tool to scan your documents, photos taken from smartphones should be avoided as they are difficult to read.
• If you donate your scanned documents, make sure the documents are in PDF formats.
• The pages must be in order, and all in the same direction.

Proving your income

• Permanent employees

Letter of employment, mentioning your name, position, salary, date of hire.

Pay statement

• Seasonal or daily employees

Letter of employment, payslip

Federal notice of assessment for the past 2 years and your federal income tax return (2 years)

• Permanent employees on maternity or paternity leave

Letter of employment with a return to work date, payslip

• Retirement

Proof of annuities received with a bank statement showing deposits

• Parents with children

Provincial and federal statement showing family allowances paid

• Self-employed workers

Federal and state notice of assessment Last 2 years

Federal tax report with appendices showing this income.

Proof of payment of taxes

• Person on disability

Statement showing the disability pension received, this income to be eligible, the client must prove that his pension is permanent.

Prove your down payment

You must prove your down payment when you make a purchase.

• Your savings and/or 401(k) Plan

Bank statements for the last 3 months, one with your name and address on the statement.

• Donation from a close relative

Donation letter with proof that the money is deposited into your account.

Some banks will also require proof of the source of the donor’s funds with a copy of the bank statement from which the donation came or a bank letter attesting that the amount was given.

• Refinancing on another property

Unconditional mortgage approval letter from the bank

Mortgage balance before refinancing

List your assets

Auto, motorcycle, boat, plane, helicopter, and more.

Your investment statements 401(k), IRA, etc.

Do you have other properties?

If so, the bank will also require the mortgage statement, municipal, and school taxes of each building.

The last tax report with the rental schedules is often requested. Otherwise, the bank will ask you for all leases with the renewal notices.

Credit

• Consumer proposal, bankruptcy

Report of the trustee with the list of your creditors

Certificate of discharge so recent

• Disputes appearing in the credit bureau

Provide proof that collections are paid

Example: ambulances, cell phones, collections, court judgments

• Payment of your credit card balance

Proof of Payment of Your Credit or Cards Balances

If you pay off your cards in full, you can give your banker a statement with proof that the balance is paid.

This will allow you to lower your debt ratios and help you qualify.

Property to finance

• Sold with a real estate broker

If the property is sold by a real estate broker, the description sheet or listing will be required. The bank will then have all the information to qualify you.

• Sold directly by the owner

Municipal tax statements

School tax statement

Certificate of location

Rental leases with renewal notices

• Rural properties

Septic tank water or compliance test.