What documents do I need for a mortgage?

In Canada, lenders ask for proof of who you are, what you earn, where your down payment comes from and what you are buying. A salaried employee usually needs pay stubs and an employment letter. A self-employed borrower usually needs two years of tax returns and Notices of Assessment.

Proof of identity and income

Expect to show government-issued photo identification. The lender, your broker and your lawyer each have to confirm who you are. Please don't send a copy of your ID by e-mail; we'll explain how it is verified securely.

The income documents you need depend on how you are paid.

• Salaried or hourly: a recent pay stub, a letter from your employer confirming your position, pay and start date, and often your most recent T4 or Notice of Assessment.
• Commission, bonus or overtime: usually two years of T4s and Notices of Assessment, because lenders average variable income over time.
• Self-employed: usually two years of personal tax returns with Notices of Assessment, and sometimes business financial statements or proof of business registration.
• Other income: pension statements, child tax benefit statements, or leases if you will count rental income.

A Notice of Assessment (NOA) is the summary the Canada Revenue Agency sends after it processes your return. Lenders like an NOA because it confirms what you reported and shows whether you owe tax.

Proof of down payment and closing funds

Lenders usually ask for recent statements from the accounts holding your down payment, covering a period of time, so they can see where the money came from. Large deposits may need an explanation. If part of your down payment is a gift, expect a signed gift letter. If you are using an RRSP under the Home Buyers' Plan or a First Home Savings Account, statements from those accounts show the funds.

Property documents

The property documents a lender asks for depend on what you are buying and the kind of mortgage:

• For a purchase: the signed agreement of purchase and sale and, often, the MLS listing.
• For a condo: the lender may also ask for the status certificate, which describes the building's finances and rules.
• For a refinance or renewal: your current mortgage statement and a recent property tax bill.

The lender may also order an appraisal.

Where alternative lenders differ

Banks, credit unions and monoline lenders follow fairly standard document lists. If your income is harder to document, alternative lenders may accept other proof, such as bank statements, usually at a higher cost. We start with the institutional options and move on only if they do not fit.

What to do next

If you would like a document list for your own mortgage, use our call-me-back form. You can also see how pre-approval works.