We’ve compiled a list of common documents that can help you out with your mortgage journey. You can scroll through the doucments below or search by keyword. 

Sample Documents

Articles of Incorporation

WHAT ARE THE ARTICLES OF INCORPORATION?

The Articles of Incorporation are an official document outlining the name and corporation number of the business and who owns it.

WHY DO LENDERS REQUIRE ARTICLES OF INCORPORATION?

If you are self-employed and incorporated, they need this document to determine your connection to the business and if you have any partners.

WHERE CAN I FIND MY ARTICLES OF INCORPORATION?

Articles of Incorporation should be in your tax file but can also be received or completed through an accountant, tax company (i.e., H&R Block) or by the individual you work with on your corporate taxes.

Note: these documents are NOT on the CRA website and CAN NOT be obtained by logging in to CRA.

Bank Statements for Down Payment

WHAT ARE BANK STATEMENTS FOR A DOWN PAYMENT?

Bank statements are a transaction history for any funds used for down payments or closing costs. These statements should show your name or have supporting documentation to show account ownership.

WHY DO LENDERS REQUIRE BANK STATEMENTS FOR A DOWN PAYMENT?

The Government of Canada requires lenders/brokers to show the 90-day history of all funds used for either a down payment or closing costs; to comply with FINTRAC regulations (Anti-money laundering).

HOW DO I GET MY BANK STATEMENTS FOR THE DOWN PAYMENT?
  1. If your down payment is coming from savings or investments, you will need to provide a 3-month history (Canadian Anti-Money laundering rules). If you do internet banking, you can print out a 3-month history and if your name is not on the printout, please provide an older statement to match up the accounts. Alternatively, an online “summary of accounts” should have your name on it allowing us to match up the 3-month history account to your name. Please note some investment statements are issued quarterly so please provide the most recent quarterly statement and online statement reflecting an up- to-date balance.
  2. If your down payment is coming from the sale of a property the lender will require a copy of the sale contract, along with an addendum that subjects have been removed or a copy of the “Order to Pay” you would have received at the lawyer’s or notary, and a copy of the most recent mortgage statement.
  3. Any “gifted funds” may only come from a direct family member. The lender will require a gift letter along with confirmation of the gift amount being deposited into the purchaser’s account. The lender can request confirmation of the source of funds. Please note that the amount deposited into the account must match the amount stated in the gift letter. Most lenders have their own gift letters; therefore, I will provide the gift letter. The gifted funds should be deposited into your bank account a minimum of two weeks before the completion date.

 

Note: mobile statements do not have all the information. Bank statements need to be from a desktop or from your bank branch.

Canada Child Benefits (CCB)

Canada Child Benefits Full (CCB)

Closing Costs

WHAT ARE CLOSING COSTS?
Closing costs are the fees associated with the purchase of your home that is in addition to the actual purchase price, such as legal fees and disbursements, land transfer taxes and moving expenses. The actual detailed closing costs are unknown until very close to your closing date as there are details from the seller and their lawyer among other things that may not be confirmed until very close to closing. The guideline is approximately 1.5% of the purchase price but it may be higher or lower based on the specifics of your situation. Please note that for CMHC (Canada Mortgage and Housing Corporation), Canada Guaranty and Sagen insured mortgages, you must provide evidence of available cash for closing costs equal to 1.5% of the purchase price so they know you will have enough money for the extra costs at closing. Below we break down what is included.
LAND TRANSFER TAX
This tax is payable on the purchase of all real property in Ontario. The calculation can be found here for properties inside Toronto there is an additional Municipal Land Transfer tax that the calculation can be found here: First Time Buyer Rebate – Most first-time buyers are exempt from or receive a discount on these taxes if they meet certain criteria and always confirm with the lawyer you are using for the purchase. The main criteria are:
  • Borrower has never owned a principal residence anywhere in the world.
  • Must be a Canadian citizen or permanent resident and residing in Ontario for a minimum of 12 months.
For more information go here
LEGAL FEES
Legal representation will cost you approximately $1100 for a purchase and a mortgage, add another $900 if you are selling a property at the same time. The lawyer sets their own pricing, but this is the approximate range you should expect.
INTEREST ADJUSTMENT EXPLANATION:
The interest adjustment date is the date from which your lender starts calculating the interest you’ll pay. It’s basically the date on which the term of your mortgage really begins. Interest adjustment generally takes place on the 1st day of the month after the completion date. For example, if your completion date is June 20th and you choose the monthly payment frequency option, please see the dates:
  • Completion date is June 20th.
  • Interest adjustment date is July 1st.
  • First full payment date is August 1st.
TITLE INSURANCE/SURVEY CERTIFICATE
A bank will either require title insurance or a survey certificate. The majority of banks are now requiring title insurance and the lawyer or notary you choose will be able to explain the differences and go over pricing.
PROPERTY APPRAISAL
The property is evaluated by a professional appraiser to determine the market value of the property. This is done on conventional mortgages (down payment is 20% or greater, private transactions and properties to be used for investment purposes. This is to ensure that:
  • The lending institution is not over-lending on the property and
  • To protect the borrower from overpaying. Generally, a standard residential appraisal will cost $375.
  • The property is in good condition with no deficiencies or issues with structure, mould, etc.
PROPERTY INSPECTION
An inspection is a thorough evaluation of the structure, systems, and components of a home. The inspection report is usually multi-paged, and comments on the condition of, but not limited to foundations, electrical, plumbing, heating, water heaters, appliances, fireplaces, drainage, roof, walls, floors, attic, crawl spaces, patios, etc. This report is for the sole benefit of the buyer and is not required by the bank.
PROPERTY TAX ADJUSTMENT
Generally, property taxes for the calendar year are paid at the beginning of July. If you purchase a property before July 1st, the seller will be paying you for the days they owned the home from January 1st to the completion date. You then are responsible for the entire amount to be paid to the municipality on July 1st. If you purchase a property after July 1st, you will pay the seller for the days you own the property from completion day to December 31st, as they will already have paid the entire amount to the municipality on July 1st. To calculate this amount: one day’s taxes on owner-occupied properties are the annual taxes, less the $570 (estimate) homeowner grant, divided by 365.
INSURANCE BINDER
This is a requirement by the bank to ensure that the borrower has arranged sufficient insurance to cover any losses that may be incurred on the purchase. The lender will typically provide a specific address they want this to be sent to your lawyer. Proof of coverage by way of an insurance binder supplied by the insurance agent.
FIRE INSURANCE
The mortgage lender will insist that you purchase an insurance policy which guarantees that, in the event of a fire, the home will be rebuilt to a standard that ensures the bank’s collateral is not in jeopardy. Fire insurance is normally applicable to only houses and not strata units (i.e., townhouses and condos). *PLEASE NOTE: Lenders will want proof that you have at least 1.5% of the purchase price for closing costs. This is not how much they will be, but rather a generic estimate.
You can also use our app to estimate closing costs at different price points. It is free and can be downloaded here
Every home will have different costs associated with purchasing it.
*Closing costs are estimated only and may be higher or lower than estimated. Please contact your lawyer/notary to verify.
The information and services offered on this Site are provided with the understanding that neither site providers, nor its suppliers or users are engaged in rendering legal or other professional services or advice. Although we strive for accuracy, timeliness and completeness, the information quoted is not guaranteed and may change at any time and the information you obtain at this site is not, nor is it intended to be legal advice. If you require specific advice regarding your own situation, please contact me for consultation.

Confirmation of Rental Income

WHAT IS CONFIRMATION OF RENTAL INCOME?

Confirmation can be proven in three different ways:

1. T1 General (amount claimed on taxes) 2. Signed current lease agreement.
3. Market rents by an appraiser

WHY DO LENDERS REQUIRE A CONFIRMATION OF RENTAL INCOME?

Lenders require confirmation that the rental income declared on the application is accurate.

WHERE CAN I FIND MY CONFIRMATION OF RENTAL INCOME?

Your confirmation can be obtained from your tax documents for your T1 General by scanning your current lease agreement. If you require an economic rent letter, I would be happy to obtain that on your behalf.

If you do not have a current lease agreement the Ontario templated lease agreement can be found here.

Current Mortgage Statement

WHAT IS A CURRENT MORTGAGE STATEMENT?

Your Current Mortgage Statement is a document from your current mortgage lender outlining your regularly scheduled payments on your current mortgage.

WHY DO LENDERS REQUIRE A CURRENT MORTGAGE STATEMENT?

Lenders use this to calculate your current debt balance and monthly required payments.

WHERE CAN I FIND MY CURRENT MORTGAGE STATEMENT?

Your Mortgage statement will be issued annually; however, for a current balance, you can obtain the statement from your online banking provider. You may provide a document from an online banking portal however it must be from a computer; typically, mobile statements do not show the information required.

Gift Letter

WHAT IS A GIFT LETTER?

A gift letter is a written document used to show funds deposited for a down
payment. Each lender needs their own on their own template so we may need to wait until the approval before doing this step.

WHY DO LENDERS REQUIRE A GIFT LETTER?

The lender will require a gift letter along with confirmation of the gift amount being deposited into the purchaser’s account. The gift letter verifies the amount of funds being used for a down payment and the relationship of the person giving the gift to the receiver.

HOW DO I GET MY GIFT LETTER?

Most lenders have their own gift letters; therefore, I will provide you with the form needed for submission. Please note, that the amount being deposited must match the amount stated on the gift letter. Additionally, the funds should be deposited into your account a minimum of 3 weeks before the closing date.

House Insurance

ID Examples

Job Letter

WHAT IS A JOB LETTER?

Your job letter is written by your employer to verify your position within the company, start date, and income. It is on company letterhead and has the contact information of the author who signs it.

WHY DO LENDERS REQUIRE A JOB LETTER?

Lenders require your job letter to verify employment and have the contact information of your employer for verbal confirmation of your employment.

HOW DO I GET MY JOB LETTER?

Job letters can be obtained through a simple request made to your employer; they generally will have a template on hand so it will take very little time to complete. It is often the HR department that issues these if the employer is large enough to have this support.

Master Business License

WHAT IS A MASTER BUSINESS LICENSE?

The Master Business License (MBL) is an official document outlining the registration of a business and the type of business (sole proprietor, partnership).

WHY DO LENDERS REQUIRE A MASTER BUSINESS LICENSE?

If you are self-employed, they need this document to determine the support that you have for a real business.

WHERE CAN I FIND MY MASTER BUSINESS LICENSE?

Articles of Incorporation should be in your tax file but can also be received or completed through an accountant, tax company (i.e., H&R Block), or by the individual you work with on your taxes. You can also complete it by mail or online here

Note: these documents are NOT on the CRA website and CAN NOT be obtained by logging in to CRA.

Notice of Assessment

WHAT IS AN NOA?

A Notice of Assessment form is usually a 3–4-page form that Revenue Canada sends back to you as a summary of your received Tax Return. It will either contain a refund cheque or a bill for your outstanding taxes for the previous tax year. It will include the date, your full name, SIN number, tax year, and tax center clearly indicated in the top row of the page.

All pages of this document need to be provided.

WHY DO LENDERS REQUIRE NOAs?

1. To confirm if there are any outstanding taxes owed to Revenue Canada. 2. To confirm your taxable income as per line 150.

Tax arrears could be placed on the title of your home and take priority over any mortgage financing in a sale of the property. The lender will require the tax arrears to be brought up to date before advancing mortgage funds.

WHERE CAN I FIND MY NOA?
  1. Sign a T1013 and we will have a tax professional obtain your Notices of Assessment on your behalf.
  2. You can obtain a duplicate copy by contacting the Canada Revenue Agency, or by logging into your account with them at http://www.cra-arc.gc.ca/esrvc- srvce/tx/ndvdls/myccnt/menu-eng.html
  3. You can access your CRA account by using the signing partner option with your banking login information.
    • Go to the CRA login site
    • Click My Account login
    • There will be two options, using a sign-in partner and CRA login – Click on the Sign-in Partner
    • Then choose your banking institution from the list
    • Then enter your banking login details and you are done.

Pay Stub

WHAT IS A PAY STUB?

Your pay stub shows your employment earnings for the specified pay period and any deductions are taken off.

WHY DO LENDERS REQUIRE A PAY STUB?

Your pay stub is used for an additional source of verification on your income and a breakdown (e.g., hourly wage, overtime, hours worked, year-to-date income).

WHERE CAN I GET MY PAY STUB?

Your pay stub can be obtained from your employer and must be recent (within the last 14 days). The information should ideally be consistent with what is written in your job letter.

Residential Lease Agreement

Sample Letter of Confirmation of Employment

Separation Agreement

WHAT IS A SEPARATION AGREEMENT?

A separation agreement is a written record of how a couple has settled issues arising from the end of their relationship. Separation agreements are legal contracts recording the terms of your settlement that the court can enforce.

WHY DO LENDERS REQUIRE A SEPARATION AGREEMENT?

Lenders require a separation agreement to verify that there is a legally binding contract in place. It is especially the case if there is marital property to divide or children. Lenders need confirmation any child or spousal support paid or received is agreed upon to use correct numbers on the stress test.

HOW CAN I OBTAIN MY SEPARATION AGREEMENT?

A separation agreement can be obtained through your lawyer if you do not already have a copy.

Statement of Business Activities

WHAT IS A STATEMENT OF BUSINESS ACTIVITIES?

The Statement of Business Activities (T2125 tax form) calculates your business or professional income as a self-employed person. Use it if you are the only person in the business (sole proprietorship) or if you are in business with one to five other people (partnership).

  1. You are self-employed if you control the time, place, and manner of performing your activities; supply your own equipment and tools and assume the rental and maintenance costs; make a profit or incur a loss and cover operating costs; and integrate your client’s activities into your own business activities.
  2. You are an employee if your employer decides where, when, and how the work is to be done; establishes your working hours; determines your salary amount; supervises your activities and assesses the quality of your work.
WHY DO LENDERS REQUIRE A STATEMENT OF BUSINESS ACTIVITIES?

A Statement of Business Activities identifies which write-offs could be added to an applicant’s income. You calculate your gross and net income after deducting all your business expenses like advertising, rent, home office, and motor vehicle expenses.

WHERE CAN I FIND MY STATEMENT OF BUSINESS ACTIVITIES?

T1 general should be in your tax file but can also be received or completed through an accountant, tax company (i.e., H&R Block), or by the individual who submitted your taxes.

Note: these documents are NOT on the CRA website and CAN NOT be obtained by logging in to CRA.

T1 General - Statement of Real Estate Rentals

T1 General

WHAT IS A T1 GENERAL?

The T1 General is the document that your Accountant files to CRA when they do your income taxes. The Full T1 general is typically a 40-page document used in Canada by individuals to file their personal income tax returns. Individuals with tax payable during a calendar year must use the T1 to file their total income from all sources, including employment and self-employment income, interest, dividends, and capital gains, rental income, and so on. The T1 summary document is 4 pages typically.

After applicable deductions and adjustments, the net income and taxable income are determined, from which the federal tax and the provincial or territorial tax are calculated to give the total payable. Subtracting total credits, which include the tax withheld, the filer will either receive a refund or have a balance owing, which may be zero. The T1 and any balance owing for each year are generally due by the end of April of the following year.

WHY DO LENDERS REQUIRE T1 GENERALS?

If you are self-employed, get pension income, RIF income, annuity income, etc. traditional lenders normally require 2 years of T1 General Tax Returns to confirm that you are filing taxes and confirming the numbers. For self-employed individuals, the full T1 general will be required and usually can allow us to “add back” certain expenses into your income to better qualify you for financing.

WHERE CAN I FIND MY T1 GENERAL?

T1 general should be in your tax file but can also be received or completed through an accountant, tax company (i.e., H&R Block), or by the individual who submitted your taxes.

Note: these documents are NOT on the CRA website and CAN NOT be obtained by logging in to CRA.

T2 Corporation Income Tax Return

WHAT ARE T2 CORPORATION INCOME TAX RETURNS?

This is the document filed by your Accountant to CRA for an Incorporated business.

WHY DO LENDERS REQUIRE THE T2?

They require the gross income and the net income of the business as well as the outline of the expenses claimed by your Accountant and proof that there are no outstanding income taxes owed to CRA by the business. For self-employed individuals, this document may allow us to “add back” certain expenses into your income to better qualify you for financing.

HOW CAN I OBTAIN T2?

T2 general should be in your tax file but can also be received or completed through an accountant, tax company (i.e., H&R Block) or by the individual that submitted your taxes.

Note: these documents are NOT on the CRA website and CAN NOT be obtained by logging in to CRA.

T4 or T4A

WHAT IS A T4/T4A?

Your T4 is a form used by your employer to state how much you earned and what your payroll deductions for that tax year were. This will include any CPP and EI deductions, as well as any other deductions taken that year.

WHY DO LENDERS REQUIRE T4’S/T4A’S?

Most lenders require your T4 to confirm your past employment and earnings.

HOW CAN I GET MY T4/T4A?
  1. Your T4 should be in your tax file.
  2. Request an additional copy from your employer.
  3. Sign a T1013 and we will have a tax professional obtain your Notices of Assessment on your behalf.

Note: this document is NOT on the CRA website.

Void Cheque

How can I get a void cheque?

You can obtain a VOID Cheque from your online banking account or from a bank teller at your local branch.