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.
