Purchase Mortgage Documents Checklist

As an applicant for a purchase mortgage you need to provide a variety of documents. For you convenience we have put together a Purchase Mortgage Documents Checklist

It is important to take note of these in a personal checklist that is customized and applicable to your situation.

purchase mortgage documents checklist

Mortgage For Less is a premium mortgage brokerage and has no tolerance for fraud. We’ll be using a variety of methods to do a proper check for fraudulence.

 

Identification

  • You need to provide a copy of your driver’s license, passport, or other government-issued photo ID (but not a Health card).
  • SIN (while not required but helpful)

Why is it a requirement?

Identification is used to verify your identity. While it’s a measure for preventing fraud, it’s essential for us to properly fill out your mortgage application. It’s also a requirement so a lender can provide you with funding.

A basic of the purchase mortgage documents checklist.

Important things to know:

  • All ID text, photos and numbers must be clearly visible

 

Income Verification

If your income is salary or wages, provide:

  • A recent pay stub showing the pay date, pay amount, your name and the employer’s name.
  • A job letter on a company letterhead detailing your start date, position, guaranteed salary/wages, and a human resources contact name and phone number.

If any of your income comes from a bonus, commissions, overtime, a contract, gratuities or investments:

If your income is through self-employment, provide:

  • The most recent two years of Notice of Assessments (NOAs) from Canada Revenue Agency (CRA)
  • Your business license, articles of incorporation, or GST registration number
  • Self-employed applicants may have to show two years of unaudited accountant-prepared financials, depending on the lender and circumstances.

If you earn rental income:

  • Provide a copy of each lease, as well as either:
  • A Canada Revenue Agency T776 Statement of Real Estate Rentals
  • or two years of T1 generals (personal tax returns)
  • or two years of Notice of Assessments (NOAs) form Canada Revenue Agency

If you earn Alimony/Child Support:

  • Provide Notice of Assessments (NOAs) from Canada Revenue Agency (CRA)
  • The full separation/support agreement

If on maternity/paternity leave:

  • A job letter on a company letterhead detailing your start date, position, guaranteed salary/wages, and a human resources contact name and phone number.
  • Ensure your job letter shows the return date and salary/income upon return.

Why is it a requirement?

Income verification is required for your application so a lender can verify your ability to manage your mortgage payments. Also provides essential information for us to assess your situation. Most of all helpful information to determine which mortgage product is appropriate for you. This is an essential of the purchase mortgage documents.

Important things to know:

It’s fraud if you falsify and/or exaggerate your income. Fraud for shelter is the most common form of mortgage fraud in Canada. Therefore we won’t tolerate this irresponsible and harmful behaviour.

It is important to be honest and precise with your income so that you aren’t getting a mortgage you can’t manage to afford.

 

Proof of Down Payment

  • Savings – If your down payment is from savings, a lender wants statements to prove that the funds have been accumulated over at least three months time.
  • Gifted – If your down payment is a gift get a signed gift letter. Provide a statement that shows the funds deposited into your account. Also gifted down payments must generally be from a parent, sibling or grandparent. Otherwise the money may be considered borrowed funds, which may affect your ability to qualify.
  • Home Sale Equity – If your down payment is coming from the sale of property, provide a copy of the final sale agreement for that home. If applicable, your most recent mortgage statement. Refer to the Refinance Mortgage Documents Checklist page for more information on mortgage statements.
  • Line of Credit – If you borrow from a secured line of credit (LOC), you need a copy of the LOC statement that shows the funds withdrawn.

Why is it a requirement?

This is essential for a lender to accept and approve your application. It also helps us determine which mortgage product is most suitable for your situation. This is an essential of the purchase mortgage documents.

Important things to know:

  • If you put down a deposit on the property, provide a deposit receipt. Plus statements showing the deposit funds withdrawn from your bank account.
  • Bank or financial statements must always show your name, account number and dates.
  • Online statement printouts are fine, as long as all info appears on one page. If multiple pages, the account number appears on every page.

 

MLS Listing

A Multiple Listing Service (MLS) listing is a short document that details a for sale property. A copy of the MLS listing of the home you plan to purchase is a requirement, either an online or realtor copy is fine. If you are buying your home on a private listing website (like propertyguys.com), provide that listing instead.

Why is it a requirement?

A MLS listing is a document to verify the property you’re buying is real and for sale. It’s a basic document to determine the mortgage amount that you require. It’s a document that outlines the home you’re purchasing. Gives a lender a short summary of the home. Seems like one of the simple purchase mortgage documents.

 

Property Appraisal

A property appraisal is an estimated value of a home, in this case for one you wish to purchase. Most noteworthy the appraisal is not a document that you will provide but rather pay for, as a requirement from your lender. Appraisals ordered by a lender are not shared with you as it’s their document.

This document is a cost surrounding your mortgage. While the cost can vary depending upon the location and size of the property.

The cost of an appraisal starts around $350 and can go over $500 (plus tax).

Why is it a requirement?

An appraisal is a requirement by a lender so they have a reasonable idea of your home’s current market value. They use this value to assess the home before they are willing to lend against your home.

Important things to know:

A licensed residential appraiser is to perform a property appraisal for mortgage financing. Specifically a Canadian Residential Appraiser governed by the Appraiser Institute of Canada.

 

Signed Purchase Agreement

A Purchase Agreement is the written agreement between the seller of a property and you (the buyer). Simply it’s a contract that states your intention (as the buyer) to pay a specific amount by a set date.

The seller and you must both sign the document when you accept the offer.

Why is it a requirement?

It’s an essential document that details the transaction, the amount you are to pay for the property and when your mortgage funds are required.

Also an important document for the lender to verify accurate funding upon the date required. This is an essential of the purchase mortgage documents.

Important things to know:

  • You’ll need to provide the final purchase agreement signed by all parties, with all conditions waived.
  • Make sure it’s legible
  • Ensure all dates are accurate
  • All witness lines must have signatures

 

Void Cheque

A void cheque is simply an unusable cheque that details your transit number and account number. It’s essential for a lender to deposit and withdraw funds from your account.

Why is it a requirement?

It’s an essential document that allows a lender to fund your mortgage. Also confirms the funds are in fact deposited to you, the mortgagor. It’s the simplest of the purchase mortgage documents.

Important things to know:

  • Make sure that the cheque you provide is an account in your name, if it isn’t it won’t be a valid document.
  • If you don’t provide a void cheque provided by your banking institution, make sure that you properly void a cheque of your own.
  • It’s highly recommended you get a void cheque from your bank. Can be easily be obtained from their website or physically at a branch location.

 

You’re done the Purchase Mortgage Documents Checklist!

This is an essential page for detailing the list of purchase mortgage documents you need. Therefore we highly recommend that you bookmark this link so that you can reference it in the future.

 

When you’re ready, we’re here to help!

When you’re ready we have an excellent online mortgage application. If you have any questions regarding the online application feel free to call us.

You can also begin the mortgage process by giving us a direct contact. We will still require all the details found in our online mortgage application.

If you have any questions in regards to mortgages, the purchase mortgage documents or your options, please contact us and we’d be happy to help guide you.

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