I understand that accumulating the necessary documents for a typical mortgage can be quite a challenge. Having all these documents ready and easily available on hand can be viewed as a stressful or laborious task, but with a little preparation, you can handle your preparation quickly and easily.
As experts in mortgages, we’ve created a handy checklist to help you complete your taxes with as little stress as possible. Follow our checklist for documents you need to have ready for a typical mortgage so that you can get back to the other important things in life.
Notice of assessments (last two years)
A notice of assessment is the written decision of the tax authorities after a review of a taxpayer’s return, whereby the taxable income is determined, and the amount of tax due is calculated. You will need to provide notice of assessments from the last two years in order for them to verify your tax status, especially if you are self-employed.
T4’s (last two years)
A T4, or a Statement of Remuneration Paid, is an information slip prepared and issued by an employer to tell you and the tax authorities how much employment income you were paid during a tax year and the amount of income tax that was deducted. You need to provide them with T4’s from the last two years as proof of the total amount of income you received.
Ninety-day history of the accounts that you are using for your down payment
When assessing your risk profile, they make sure to check that your downpayment has been in your account for at least a few months and did not just show up overnight. This is to confirm that the money is through legitimate sources and not through fraud. If you can prove that you got the money from the sale of a house, car or other immediate forms of money by showing receipts for them, then keep those safe too.
Letter of Employment
You will need to provide a Letter of Employment from your employer on a company letterhead that states when you started, how much you make per hour or salary, how many guaranteed hours you work per week, etc. This is a fairly normal request and isn’t hard to procure. If you are self-employed, you will have to provide more details, most commonly your business license.
Pay stubs (last two)
This shows how much you have earned recently and may be available in paper form or as electronic versions. If you receive other types of payment, such as overtime compensation, you’ll need to produce documentation for that income as well. If you are self-employed or have other sources of income, you will need to show some kind of proof.
For any mortgage you are applying for, you will likely have to provide federally accepted forms of photo ID, such as a driver’s license, birth certificate or passport. This requirement is pretty straightforward! They will let you know if you need to get any other personal identification or information.
If you have any concerns about getting a mortgage or you’re looking for a mortgage broker to help simplify the process, reach out to Matt Brownlow, Synergy Mortgage Group, a mortgage broker in Hamilton. I know that mortgages can be complicated, intimidating, and stressful. But when you use a mortgage broker, I can help make the process smoother. I have access to all of the major banks, plus other lenders that you probably didn’t even know were out there. My job is to do the leg work for you, find you the best rate, and guide you through the process.
To learn more about my services, please click here. Have a question? I would love to hear from you. Contact me below.