STEP 1: Organizing Your Mortgage Documents
The Most Critical Step to Hassle-Free Mortgage Financing!
Without accurate and thorough document review in advance of issuing a mortgage approval, your mortgage approval is not worth the paper it is written on.
The US subprime crisis quite literally erased hundreds of billions of dollars from global capital markets and subsequently forever changed mortgage lending throughout the western world. Mortgage lending today is scrutinized at a new level and so are the documents required to obtain mortgage loans.
Our Team Has Funded over $2.5 billion dollars of mortgages
We have never had a mortgage not fund when clients follow our process. Depending on the type of mortgage you’re applying for and whether you’re an employee of a company or an entrepreneur (business-for-self (BFS) or self-employed).
Please, keep in mind that for mortgages purposes medical professionals, partners at law firms, and people who own 20% or more of a corporation are generally deemed to be self-employed.
Individuals who derive a significant portion of their income from an investment portfolio or trust are often also required to provide supplementary documentation. Please also keep in mind that senior executives and people who have a personal taxable income in excess of $500,000 per year are most often subject to the same income review that business owners face.
Depending on the type of mortgage transaction and how you earn your income, you will need to organize and prepare a slightly different set of documents. Some are these documents are required prior to lenders issuing approval and some are simply required prior to completing your mortgage file with the lender.
Documents required will depend on which of the following categories you fall into:
☑ Mortgage for Residential Purchase
☑ Residential Mortgage Refinance
☑ Full Mortgage Pre-Approval (the real type you can rely on where income, assets, and liabilities have been confirmed in writing)
Required at Time of Application
Income Verification for Employee
☑ Most recent Pay Stub – dated within 60 days
☑ Letter of Employment – dated within 60 days
If income is hourly or highly variable (ex. Investment Bankers, Partners at Accounting/Law/Consulting Firms, Medical Professionals, Sales Executives, etc.) lenders may also require the following:
☑ Past two years of T4 slips and/or Notices of Assessment (NOAs) may be required
Income Verification for Executives / Self-Employed
Lenders will require:
☑ Personal Tax Return (Complete T1 Generals) – for 2 most recent tax years
☑ Notices of Assessment (NOAs) – for 2 most recent tax years and confirming no income taxes owing