When applying for a mortgage, preparation goes a long way. One of the most important steps is gathering the documents your lender will need to verify your financial situation. Having everything in order not only speeds up the approval process but also strengthens your application.
Here’s what lenders typically expect:
1. Proof of Income
Lenders want to know you have stable and sufficient income to make your mortgage payments. Expect to provide:
- Recent pay stubs (usually the last two to three)
- A letter of employment outlining your position, salary, and length of employment
- T4 slips or tax documents from the past two years (especially for salaried employees)
- For self-employed applicants: recent tax returns, Notices of Assessment, and business financial statements
2. Bank Statements
To assess your savings and spending habits, lenders usually request 90 days of bank statements. This helps confirm that you have enough for a down payment, closing costs, and that your money has been in your account long enough to meet lending requirements.
3. Credit Report and History
Lenders will access your credit report to evaluate your borrowing history, credit score, and current debts. While you don’t need to provide this yourself, it’s wise to check your credit ahead of time so there are no surprises.
4. Details of Existing Debts
Lenders will ask about car loans, student loans, credit cards, and other financial obligations. You may need to provide monthly payment amounts and balances to help calculate your debt-to-income ratio.
5. Identification and Legal Documents
You’ll need to confirm your identity and legal status. This typically includes:
- Government-issued ID (driver’s license, passport, etc.)
- Social Insurance Number (optional, but helps verify credit)
- Proof of residency or immigration status, if applicable
6. Information About the Property
Once you’ve made an offer, lenders will want details about the home you’re buying:
- MLS listing
- Purchase agreement
- Property tax bill
- Condo documents (if buying a condo), including fees and financials
7. Down Payment Verification
Lenders must confirm the source of your down payment. If it's from your savings, statements will show that. If it's a gift from your family, you’ll need a signed gift letter and sometimes proof of the transfer.
Being organized and responsive during the mortgage process can make all the difference. Providing clear, complete documents early helps lenders assess your application quickly and gives you the best chance at a smooth, stress-free approval.
