Supporting docs for income proof – Part 2
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Now that the application process (part 1 of this series) is dealt with, it’s time to validate your income to your lender. This means you’ll be required to gather the documentation proving to your lender you can pay your mortgage on time each month. See the list below for what you might need depending on your type of employment.
Requirements vary from lender to lender, but these are the documents you will typically need to provide to support your application.
If you are employed, with a salary, you will usually be asked for:
- A letter of employment (to include name and address of company, job title, starting date and salary)
- Your most recent pay stub
- Notices of assessment (NOA) for the last two years (ensure that no taxes are outstanding)
If you are self-employed, work part-time or are paid by commission, you many need to provide:
- A letter from the company on letterhead reflecting your start date and position
- T1 generals for the last two years
- Most recent NOA (tax returns) to ensure that no taxes are outstanding
- Bank statements or company financials
- Corporate search/business license
- Statement of business activities
- Separation/divorce agreement, including child support details, if applicable
- Statutory declaration prepared by solicitor stating income used for qualification, if applicable
If you receive a pension or disability, you might be asked to produce:
- T4 and T1 generals for the last two years
- Bank statements to confirm deposits
- Perhaps an entitlement letter to confirm duration
Once you’ve produced the proper paperwork and sent it to your broker, your broker will send everything to the lender on your behalf.
Keep your eyes peeled for Part 3 – Your Home coming next week.