Paperwork to prepare for your mortgage appointment

Going to a mortgage appointment can be an exciting step in in the process of buying your next home. It means that you are one step closer to settling into your new home. There are a few items that you should get ready for your meeting that will help make the process run as smooth as possible. Here’s the paperwork to prepare for your appointment!

Proof of income

Whether you are getting a mortgage pre-approval or going in for the final mortgage approval, you will have to show proof of income. If you receive a full-time salaried income, you will need to bring one or two of your most recent pay slips, your T4 for the most recent year, and a letter of employment for your company. The letter of employment will have to state when you started, your current position, and your salary. If you are self-employed, or receive a commission income, AND you write off a substantial amount of your income, you will need to provide a couple different documents to prove your income.

You will need to bring the last two years’ full income tax returns or “T1 Generals” that include your statement of business activities and your corporate financial statements for the last two years, if necessary. Moreover, if you receive pay slips you will need to provide the same documents that employees with a salary need to provide. The Canada Revenue Agency can provide you with a proof of income statement that is a simple version of your tax assessment. This statement summarizes your income and deductions for a specific tax year, which is useful to provide a mortgage professional whether you are on a full-time income or self-employed.

Proof of assets

When you meet with a mortgage professional, you will need to provide them with a proof of your assets. Found on your bank statements, cash reserves, and investment account statements. These will help prove that you have the funds available for your down payment. Your down payment is an important piece of information you must bring to your mortgage appointment. In Canada, you must have a minimum of five per cent of the home’s purchase price.

If the down payment is more than 20 per cent of the home’s purchase price, you won’t have to buy mortgage default insurance. In the event of default, mortgage insurance protects the lender.  If you are using a gift from a family member for your down payment, you will need to provide a letter stating that the money is not a loan. If you are a first-time home buyer and are using the Home Buyers Plan, you will need to provide proof of the withdrawal from your RRSP.

Property details

Once you have found a home and you are going in for the final approval for your loan, you will need to provide your mortgage professional with some details about the home. The mortgage broker will need the address of the house, the closing date, a copy of the real estate listing, a copy of the Offer to Purchase agreement that includes the exact purchase price, and a copy of the appraisal of the home and inspection. After providing your broker with these items, your application will be reviewed to see if it fits within the lender’s guidelines. If you fit within in the guidelines, you will be approved for the mortgage.

Whether you are looking to get a pre-approved mortgage or wanting to get the final approval on your mortgage, our brokers at Clinton Wilkins Mortgage Team are here to help you. You can get in touch with us here.