In the old days, when you were shopping for a mortgage, the banks competed for your business and were ready to give you the lowest rates. Now, you are fighting with the banks to get the mortgage you need. It is essential, at the outset, to avoid mistakes, which are hard, and sometimes impossible, to correct.
Whether you are buying a home for the first time, thinking about buying an investment property, a vacation home, or your current mortgage is simply up for renewal, it's important that you make an educated buying decision with professional unbiased advice.
Online calculators just give you a ballpark figure. For a more accurate assessment, it is best to speak with a mortgage specialist for pre-approval. Please differentiate between pre-qualification and pre-approval. Both are used before you go shopping for the property you would like to buy.
Pre-qualification Is a preliminary screening tool that determines how much you may be approved to borrow. It is usually based on your credit and the financial information you provide.
Pre-approval is a document issued by the lender saying that you may be granted a loan/mortgage, based on credit and financial information you submitted.
The Pre-approval document serves to define your maximum approved amount and holds the interest rate for you in case the rates go up by the time you sign an offer.
Neither Pre-qualification nor Pre-approval guarantee a mortgage. Either one is a good measure you can take, to make sure you are not wasting your own or other people’s time by shopping for a property you cannot afford or for which you will not be able to arrange financing.
Don’t get frustrated. Fill in the application and let us work for you.
The loan decision can usually be obtained within 24 -48 hours.
It is better to collect all the necessary documents upfront to minimize the approval wait time.
It is better to collect all the necessary documents upfront to minimize the approval wait time.
What documents do I need to get preapproved for a home loan?
The documents providing satisfactory information on the following:
• Your residency/immigration status in Canada
• • Social Insurance
• • How much you've saved as a deposit
• • Proof of employment /Proof of income
• • Self-employment documents (if applicable)
• • Tax documents.
• • Place of Residence
• • Bank account
• • Credit information (outstanding loans: car loans, student loans, etc.)
• • Other liabilities (i.e. amount of alimony, etc)
Button Download the complete list of documents here:
This is an extensive list of documentation for any transaction. If you are unsure of some of these documents, contact us and we will send you a more concise list, tailored to your situation.
Income Documents
1. Employment Confirmation Letter
This letter must have been issued within the last 30 days.
It must be printed on company letterhead and state your start date, your annual base salary (along with bonus information, if applicable), and your job title.
It must be signed by the author and include his or her title and phone number.
2. Your most recent paystub or two
3. Two most recent years of T-4 or T4A
For business owners:
1. Master business license (for sole proprietors and partnerships) or Articles of Incorporation (for Corporation)
2. Two most recent fiscal years business financial statements
3. Two most recent years Notice of Assessment
4. Two most recent years of T-1 General Tax return (all pages) prepared by a licensed accountant.
5. Last six months business bank statements
Property-related Documentation
1. A copy of your most recent property tax notice and a confirmation of payment. Only for residential properties in your name.
2. A copy of the most recent mortgage statement available for each property owned in your personal name. This statement must show the property address, along with your personal name
2. A copy of a current lease for each rental property owned.
If a purchase: please have your realtor provide a copy of the purchase and sale agreement with all applicable signatures and MLS.
If the property is to be registered in a Holding Corp., please provide two-page document titled “Notice of Articles” for said Holding Corp.
If you are applying for a construction mortgage, please supply a detailed builder’s budget (build sheet) and a copy of the house plans.
Personal Documentation
1. A copy of your Driver’s license or your current Passport
2. A copy of your Canadian Citizenship Card or Permanent Resident Card
3. A copy of your voided cheque drawn on the account from which you wish mortgage payments to be deducted
4. If you are separated or divorced – a complete copy of the separation agreement or Certificate of Divorce
Down Payment:
The lender will require 90 days bank account history of the account in which the total down payment funds will accumulate
1. Three months bank statement or Investment account. All statements must clearly show the account holder’s personal name and account number
2. A contract of purchase and sale of your current residence, if the source of funds is from a sale.
3. If you are a business owner - there is an option to raise capital via equipment leasing through your business.
The more documents you provide during pre-approval – the more chances of getting a solid approval when needed.