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Financing Your House Purchase

We work hard to get you the best mortgage possible! To do that, we need to receive and review your documents ahead of time so that we can advise you, find the best lender for your needs and goals, and coach you through the financing process to ensure a smooth mortgage closing.

 

Is Your Down Payment Less than 20%?

If your down payment is less than 20% of the purchase price, you are applying for a “High-Ratio Mortgage.” You will be charged a premium, called a Mortgage Loan Insurance or Mortgage Default Insurance, that is added to your mortgage balance. The amount of insurance needed is based on your down payment. There are three providers of mortgage loan insurance in Canada: CMHC, Genworth and Canada Guaranty.

Click on the links below for more info in Mortgage Loan Insurance:

What is Mortgage Loan Insurance?

How much does Mortgage Loan Insurance Cost?

Mortgage Loan Insurance FAQs

If you require mortgage loan insurance, you will also be limited to an amortization of a maximum of 25 years. You may face other borrowing limitations if you or your co-applicant’s credit score is below 680.

 

Documents Needed to Apply for a Mortgage

Here is the list of documents needed to complete a mortgage application for a house purchase.

PLEASE NOTE: To ensure the most comprehensive service possible, we must receive and review all of your documents before submitting to lenders. Sending us all of your documents promptly will speed up your mortgage application process. Thanks! Marla and her team

 

For Employees        (scroll down for Self-Employed)

STEP 1: CREDIT

  1. Completed, signed and dated Credit Consent [Link to be updated]

 

  1. Valid ID is required for each borrower and must include both sides of:
  • 1 piece of government issued photo ID (i.e. Driver’s License, Passport, or Citizenship Card)
  • 1 additional piece of ID (i.e. Birth Certificate, SIN Card, or Major Credit Card)
  • DO NOT use OHIP card

 

STEP 2: MORTGAGE APPLICATION

  1. (Optional, though preferable) Fully completed Mortgage Application: [Link to be updated] choose “Pre-Approval” then ‘Purchase”

 

  1. Verification of borrower employment and income (lender may request any of the following):
  • Most recent Pay Stub (dated within 30 days)
  • Letter of Employment (dated within 30 days)
  • (If income is highly variable (i.e. investment banking, sales, etc.) or hourly employee) Past 2 years of T4 slips and/or Notice of Assessments (NOAs) may be required
  • Lender may also ask for last two years of T1 Generals and/or three to six months bank statements to prove income

 

  1. If you currently own a property:
  • Mortgage Statement of current which includes the name of the lender, mortgage reference number, approximate mortgage balance, current mortgage payment, status of property tax account and mortgage renewal date. The existing lender’s Annual Statement and/or the Mortgage Renewal Document would be ideal for this purpose. (Each property owned)
  • Most recent year’s Property Tax Bill listing annual tax amount and showing account is in good standing (Each property owned)
  • Original Purchase Price & Date
  • Estimate of Current Value
  • Most lenders will require an Appraisal Report to confirm the value of the property (most often, the appraisal will be ordered after receiving the Mortgage Commitment from the lender since it must be ordered from an appraisal firm that is acceptable to the lender)
  • (If you currently have a high-ratio or insured mortgage) Mortgage Insurance (CMHC/GE/CG) Reference Number for the existing mortgage being refinanced

 

  1. If existing debts are being is being paid prior to mortgage application, an accurate and detailed listing of all of these debts will be required
  • It is important to be as accurate as possible with loan balances to ensure there will be no fund shortage at closing
  • Copies of Credit Card, Personal Line of Credit, and other Loan Statements showing your name and account numbers

 

  1. Lawyer’s Name and Phone Number

 

  1. Personalized VOID Cheque for the account you wish to use for mortgage payments

 

  1. Confirmation of down payment (depending upon individual lender/insurer policies, you may be required to provide one or more of the following items):
  • 90 Days of Bank Statements with evidence of gradual accumulation over 90 days
  • Account ownership must be confirmed by providing statements that show your name, an account overview which shows both your name and account numbers, or a VOID cheque for the account
  • Any large deposits aside from payroll must have supporting documentation to verify an allowable source
  • Investment Statements for RRSPs, stocks, etc. with the same proof of account ownership
  • (If funds are gifted) Gift Letter
    • Please note that some lenders / insurers require specific wording on the letter and may require additional documentation in reference to the gift such as verification showing that investment funds or gifted funds have been deposited into the borrower’s account
  • If own an existing property: Appraisal Report to confirm the value of the property and the required down payment (most often, the appraisal will be ordered after receiving the Mortgage Commitment from the lender since it must be ordered from an appraisal firm that is acceptable to the lender)
  • (If funds are from sale of existing property) Proof of Existing Equity via both:
    • A copy of the most recent Mortgage Statement for the existing home. The statement should include the lender’s name, mortgage reference number, approximate balance, current mortgage payment and mortgage renewal date
    • Agreement of Purchase and Sale for existing property to verify a firm / unconditional sale of the property being sold (must include all schedules and be signed by all parties)

 

At time of purchase (all other documents above should have already been submitted):

  1. Agreement of Purchase and Sale (APS) including all schedules for subject property and signed by all parties

 

  1. MLS listing on subject property (Realtor can provide)

 

 

For Self-Employed Individuals

STEP 1: CREDIT

  1. Completed, signed and dated Credit Consent [Link to be updated]

 

  1. Valid ID is required for each borrower and must include both sides of:
  • 1 piece of government issued photo ID (i.e. Driver’s License, Passport, or Citizenship Card)
  • 1 additional piece of ID (i.e. Birth Certificate, SIN Card, or Major Credit Card)
  • DO NOT use OHIP card

 

STEP 2: MORTGAGE APPLICATION

  1. (Optional, though preferable) Fully completed Mortgage Application [Link to be updated] choose “Pre-Approval”

 

  1. Verification of borrower employment and income (lender may request any of the following):
  • Corporate Financial Documents such as Business License, Articles of Incorporation and/or Business HST Registration & Returns to prove business registration
  • Business Financial Statements for the most recent 2 fiscal years (Income Statement, Balance Sheet, etc.)
  • Business Bank Statements to demonstrate current cash flow (6-12 months)
  • Past 2 years of T4 slips if paid a salary
  • Past two years Notice of Assessments (NOAs)
  • Lender may also ask for last two years of T1 Generals to prove income

 

  1. If you own one or more other properties: Mortgage Statement which includes the name of the lender, mortgage reference number, approximate mortgage balance, current mortgage payment, status of property tax account and mortgage renewal date. The existing lender’s Annual Statement and/or the Mortgage Renewal Document would be ideal for this purpose. (Each property owned)

 

  1. If you own one or more other properties: Most recent year’s Property Tax Bill listing annual tax amount and showing account is in good standing (Each property owned)

 

  1. If you own one or more other properties: Original Purchase Price & Date (Each property owned)

 

  1. Estimate of Current Value (Each property owned)
  • Most lenders will require an Appraisal Report to confirm the value of the property (most often, the appraisal will be ordered after receiving the Mortgage Commitment from the lender since it must be ordered from an appraisal firm that is acceptable to the lender)

 

  1. If existing debts are being is being paid prior to mortgage application, an accurate and detailed listing of all of these debts will be required
  • It is important to be as accurate as possible with loan balances to ensure there will no fund shortage at closing
  • Copies of Credit Card, Personal Line of Credit, and other Loan Statements showing your name and account numbers

 

  1. (If you currently have a high-ratio or insured mortgage) Mortgage Insurance (CMHC/GE/CG) Reference Number for the existing mortgage being refinanced

 

  1. Lawyer’s Name and Phone Number

 

  1. Personalized VOID Cheque for the account you wish to use for mortgage payments

 

  1. Confirmation of down payment (depending upon individual lender/insurer policies, you may be required to provide one or more of the following items):
  • 90 Days of Bank Statements with evidence of gradual accumulation over 90 days
  • Account ownership must be confirmed by providing statements that show your name, an account overview which shows both your name and account numbers, or a VOID cheque for the account
  • Any large deposits aside from payroll must have supporting documentation to verify an allowable source
  • Investment Statements for RRSPs, stocks, etc. with the same proof of account ownership
  • (If funds are gifted) Gift Letter
    • Please note that some lenders / insurers require specific wording on the letter and may require additional documentation in reference to the gift such as verification showing that investment funds or gifted funds have been deposited into the borrower’s account
  • If own an existing property: Appraisal Report to confirm the value of the property and the required down payment (most often, the appraisal will be ordered after receiving the Mortgage Commitment from the lender since it must be ordered from an appraisal firm that is acceptable to the lender)
  • (If funds are from sale of existing property) Proof of Existing Equity via both:
    • A copy of the most recent Mortgage Statement for the existing home. The statement should include the lender’s name, mortgage reference number, approximate balance, current mortgage payment and mortgage renewal date
    • Agreement of Purchase and Sale for existing property to verify a firm / unconditional sale of the property being sold (must include all schedules and be signed by all parties)

 

At time of purchase (all other documents above should have already been submitted):

  1. Agreement of Purchase and Sale (APS) including all schedules for subject property and signed by all parties

 

  1. MLS listing on subject property (Realtor can provide)

 

 

Last updated: Oct 2018

  Mortgage Agent Lic. M16001744 -- Mortgage Architects, Lic. 12728, Head office: 5675 Whittle Road, Mississauga, ON L4Z 3P8