A Home Mortgage Guide

Before visiting a lender. These are the items to prepare*:

*please note that all lender requires different documentation, the listed are some of the more basic items the lender will require

1. Two pieces of Identification: Government issued ID, Driver’s License, PR card, Passport and Visa (No Health Card)
   
2. Proof of Income: Past two years of T4 or T4A and three most recent pay-stubs, if self-employed: two most recent Notice of Assessment and T1
   
3. Proof of Employment: Letter of Employment
   
4. Loans: Current visa, line or credit, car loan, student loan statement
   
5. Savings: Past three months of saving, chequing, TFSA, GIC, RRSP, RESP, stocks, investments statements
   
6. Down Payment: Need to show the lender where this money is from, most lenders will require the gifted (from parents) money to be in your account for a minimum of three months
   
7. Other Assets: Other owned properties: mortgage statement, property tax bill, lease agreement, if the property is a condo: building insurance and condo insurance, owned cars
   

Working with a mortgage specialist

• Call up your specialist and tell them about your situation
• Send all the documents you prepared
• Add additional documents as per request
• Wait to hear back…
• Ask about the rates, amortization, and how your monthly will look like
• ALWAYS ask questions if something is not clear
• Do your own calculations, make sure your monthly makes sense and always save extra for closing cost and other adjustment costs

Move forward with the lender

• Confirm with the specialist that you will be moving forward with the application for a loan
• There will be disclosure documents to sign, always read what you are signing carefully (if unsure, bring the document to a lawyer or have the specialist clarify)
• More waiting… (various based on lender, typically 3-5 business days you will get an answer)
• Provide additional supporting documents as needed, your specialist will be your go-to person with any questions

Got the approval, what’s next?

• Your specialist will go over the terms, whether is a conditional approval with certain task you need to fulfill before the official approval
• If it is a firm approval, you will obtain a pre-approval paper
• Before the offer is submitted, always share the property information with your specialist – to foresee any potential issue with the loan for the specific property
• As your agent, I always make sure to stay in contact with your mortgage specialist, so you can have a pace of mind that the offered property is aligned with your pre-approval terms