Third Party Confirmation

January 30th, 2011

Subtitle -what documents you may need to provide your mortgage broker.

I have compiled a list and as I seem to keep referring to the list myself, I figure I should create a blog post and let others reference it.

People often ask me, what do I need to bring with me to a mortgage signing meeting? (note: PDF or fax copies of everything are acceptable)

Some thing I ask a lot as they don’t quite understand why I ask for certain things in certain ways. I do my best to explain that they key to anything you send me is that someone… the lender… must be able to verify everything through a third party. They don’t take my word, your word or even your lawyers word much of the time.  They do trust CRA and Equifax oddly enough.

Things you need to give us before we can get your mortgage for you

Proof of Income

  • We need 2 of the following:
  • paystub
  • letter of employment
  • T4 for previous year
  • Notice of Assessment

For self-employed or business owners

  • T1 Generals for 2 years
  • Business Licence (or GST/HST registration, something to show you registered somewhere)

Proof of Downpayment (need name and address and proof of sufficient cash linked)

  • 3 months bank statements
  • web screen print out of bank account and void check (some only accept actual bank stmts)
  • RRSP statement, Discount brokerage stmt, Investment portfolio stmt, etc.
  • Gift letter
    • Source of funds
      • coming from bank account – cancelled check

Standard Items

  • Purchase and Sale Agreement
  • MLS listing or Picture of the property
  • Appraisal for Private Purchase (i.e. FSBO or Grapevine) or Conventional deal (< 80%) or Refinance

If one or more rentals or refinance

  1. DCR spreadsheet completed (3 or more rentals)
  2. Leases (signed)
  3. Property tax info
  4. Current mortgage statement
  5. T1 generals including statement of rental worksheets (optional)

And Optionally

  • Proof of payout of Credit Cards
    1. Credit Card statement showing 0 balance
    2. Bank statement from the account paid from as well as a voided check for that account
  • Proof of payment of any collections

Financials for Corporations

  • Articles of Incorporation
  • Financial statements (profit and loss and balance sheet prepared by accountant)
  • Master Business License
  • Resolution of Borrowing By-law

T1013 if there is an issue with NOA (lender access to NOA)

Former bankrupt or proposal clients will be required to show their discharge papers or certificate of performance. The lenders want to make sure they were not part of either.

Those separated or divorced, either the separation agreement or final divorce papers. If it’s more than 10 years, tell me you are single, unless your ex-partner is vindictive.

Not an exhaustive list to be sure as the rules keep changing every year, but certainly 95% of what I or any lender might ask either upfront or as part of the conditions within a commitment.

One response to “Third Party Confirmation”

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