Credit Reports: Your Financial DNAJuly 19, 2017
Documentation: Purchase Transactions for Self-Employed BorrowersJuly 20, 2017
Here is a summary of the documentation that lenders will typically require from salaried borrowers on purchase transactions.
(We recommend that you use our encrypted server for all document uploads.)
- A copy of the Purchase & Sale Agreement and the MLS listing.
- A copy of a photo ID for each borrower.
- A void cheque from the account your mortgage payments will be drawn from.
- The name of the lawyer you will be working with to close the transaction.
- A current Equifax or Transunion credit report (to be pulled by us with your written permission).
- A letter from your employer confirming your position, your annual salary, and the total time you have worked at your organization.
- A copy of your most recent pay stub.
- If we are using bonus or commissioned income: A copy of your T4s for the most recent two years.
Down Payment Verification
- Three consecutive months of bank/investment statements from the account(s) you used for your initial deposit, and that you will be using for the remainder of your down payment and closing costs.
- If part of the down payment is a gift from family, we will provide a copy of the lender’s gift-letter form to be completed and signed, and the lender will also require a bank statement confirming that the gifted funds have been deposited into your account (when available).
- Note: Additional documentation may be required in cases where bank statements show large deposits (as per our federal government’s anti-money laundering regulations).
- The lender may require an appraisal (to be confirmed when your mortgage approval is issued).
- If an appraisal is required, the appraiser will contact the seller’s real-estate agent to schedule an on-site inspection once payment has been made.
Examples of Additional Items Which May Be Required in Specific Cases
- Divorce/separation agreement.
- T1 Generals and T4As and/or T5s if pension, dividend or interest income is being used.
- Water test if property uses well water.
- For other properties you own: Most recent mortgage and property-tax statements, current leases (if applicable).