31 Oct

Income verification

General

Posted by: David Lloyd

Income Documents Required to close your mortgage:

The #1 way to increase the efficiency and reduce the stresses of acquiring mortgage financing is to have your documents ready and reviewed BEFORE you make an offer on your new home. The following covers approx. 95% of what will be required. However… due to our ever-changing financing environment and your unique situation, there is always the possibility for added documentation to be required at any time throughout the process.

 

Employee: Salary/Regular hours:

2 most recent pay stubs: Preferably showing no time off other than Vacation

Letter of Employment: Must be on company letterhead and include your tenure, position, income and probationary period if any. Must also contain contact info for the person writing the letter (Manager, HR department, or Commanding officer for our Canadian Forces clients. *Employment letter should be less than 30 days old when the mortgage application goes live or we may have to get an update letter from your employer.

2 most recent T4s: The T4 is quickly becoming a standard request by lenders. 2 years is usually required to prove the earnings of shift premiums, bonuses, and overtime above regular hours

2 most recent NOAs: (Notice of Assesment) NOA for cases similar to the above T4’s reasoning of total annual pay. Some lenders ask for T4’s some ask for NOA’s. Best to have both on hand if at all possible.

Note: Balances owing will have to be paid in full 10 business days before closing

 

Employee: Part-Time/Permanent Part-time | On Contract | Commission, Commission/Salary mix

2 most recent pay stubs: Preferably showing no time off other than Vacation. From all employers, if you work more than one job.

Letter of Employment: Must be on company letterhead and include your tenure, position, income and probationary period if any. Must also contain contact info for the person writing the letter (Manager, HR department, or Commanding officer for our Canadian Forces clients. *Employment letter should be less than 30 days old when the mortgage application goes live or we may have to get an update letter from your employer. Require letters from all employers, if you work more than one job.

2 most recent T4s: The T4 is quickly becoming a standard request by lenders. 2 years is usually required to prove the earnings of shift premiums, bonuses, and overtime above regular hours. Require T4s from all employers, if you work more than one job.

2 most recent NOAs: (Notice of Assesment) NOA for cases similar to the above T4’s reasoning of total annual pay. Some lenders ask for T4’s some ask for NOA’s. Best to have both on hand if at all possible.

Note: Balances owing will have to be paid in full 10 business days before closing

 

Business For Self (BFS):

** If your business is incorporated it is best you call me directly

HST Remittance:

Copy of your Business License.

Most recent 2 years T1 Generals: Accountant prepared

2 Most recent NOA’s: (Notice of Assessment) the receipt you receive after filing your Taxes) Your income will be determined based on the average of your last 2 years Line 150. If your annual income has dropped lenders may only use the lesser of the two years.

Balances owing will have to be paid in full 10 business days before closing

 

Spousal and Child Support:

If you receive support payments, those funds can be used as income for qualifying for your mortgage.

Separation Agreement: A complete separation agreement will be requested showing the details of the payments being made. Child support will require proof of the age of the children to show the support payments will continue throughout the mortgage term.

 

Pensions and Annuity Income:

2 most recent T4s of all Pensions

3 – 6 months bank statements showing automatic deposits

Most recent Annuity annual statement