Buying a home is a significant and one-time investment with a financial commitment. If you are planning to buy a home in Canada, we understand the financial constraints you might be facing. The best option to deal with it is applying for a mortgage. It is a form of home loan that allows a homebuyer to make a property purchase.
The mortgage application process is more of a maze with many documents and paperwork to complete. A well-prepared application ensures your mortgage success and an easy path to homeownership.
Here is the document checklist you need to complete:
1. Government Issued Photo ID
This ID could be any proof of identity issued by the Canadian Government. Proofs such as your driver’s license or passport that verifies your legal status are accepted.
2. Your SIN Number
Since mortgage lenders check your credit history and financial background to avoid any risk of fraud, your SIN number is a vital document needed in the mortgage application process.
Employment & Income Verification:
1. Recent Pay Stubs
Provide proof of income by showing the recent pay stubs to the bank. The bank analyzes this information to estimate your ability to make monthly mortgage payments.
2. General Tax Form- T1
The T1 tax form specifies the cumulative income you earned the previous financial year to showcase your creditworthiness and ability to pay back.
3. Notice of Assessment
The Canada Revenue Agency (CRA) provides a Notice of Assessment (NOA) document after successfully filing tax that contains details of any outstanding taxes. You need to submit the NOA of the previous two years before applying for a mortgage.
4. Letter of Employment
You need to show that you are currently employed by providing the letter of employment that should be signed and verified by a company representative.
5. T4 and T4A Form
If you are working full-time, part-time, or seasonal, you’ll be provided with a T4 form by your employer. You need to provide the lender with T4 or T4A for two tax years.
Personal Finance Details:
1. Bank Account Information
To deposit the initial mortgage lump sum amount, lenders will require your bank account details. This will later be used for mortgage payments too. Always keep your bank statements for at least six months, in case your broker asks.
2. Assets & Investments List
Notify your lender about any assets or investments you have, including stocks or bond market investments, real estate holdings, and/or other securities.
3. Credit Report
A credit report will help you budget your house value and provide ample time to fix any redundancies with credit bureaus.
4. Pre-approval Letter
It’s the best thing to get pre-approved before starting your home search. If you have your mortgage pre-approved, provide the letter as proof of same.
Applying for a mortgage is a lengthy process that takes into consideration a lot of paperwork and documents. If you are planning to buy a new home and looking for a mortgage broker in Surrey, Sandhu & Sran Mortgages is here to address your financial home-buying needs.