Planning Ahead, A Guide to Mortgage Documentation
Trish Pritchard • December 17, 2020
It doesn’t matter if you are looking to purchase your first home, your next home, or your twentieth home; typically the mortgage documentation required to secure financing will be the same. The earlier on in the process you can collect these documents, and provide them to your broker, the better.
So here we go, here is a list of the most common documents that will be required to secure mortgage financing.
Income Verification
Letter of Employment
- Written on company letterhead with a current date, your letter of employment should have your name, start date, position, and list whether you are full or part-time. It should also indicate your salary or the minimum guaranteed hours/week & hourly rate. The letter should be signed with the best contact information to allow for a verbal confirmation.
Pay Stub or Direct Deposit Form
- This will confirm your income, and should match what is written on the letter of employment.
T4 Slips
- Typically your last two years T4s should work.
Notice of Assessments
- Your previous two years of NOAs will help to establish your annual income. We will be looking at your line 150.
Financial Statements
- If you happen to be self-employed, having three years of financial statements or T1 Generals will be required.
Down Payment Verification
Bank Statements
- 90 days of bank statements are required to show that you have had the downpayment in your possession or have accumulated the funds through payroll deposits. You will want to make sure that your name and account number appear on the statements.
Gift Letter
- If all or part of the downpayment is coming by way of a gift, you will have to provide a letter signed by you and the person gifting the money. The amount written on the gift letter will have to be deposited to your bank and substantiated on the bank statements.
RRSP Statements
- If part of your downpayment is coming by way of RRSP, you will be required to provide a 90-day history from your RRSP account. If you are using the Home Buyers Plan, there will be an additional form to complete.
Agreement of Purchase and Sale
- If your downpayment is coming by way of a sale of another property, the contract indicating the sale price, and your current mortgage statement will prove the equity to be used for the downpayment.
Property Details
MLS Listing
- If you are purchasing a property through a Realtor, please have a copy of the MLS listing so we can verify the property details.
Purchase and Sales Agreement
- If you already have an accepted offer, please provide a copy of the purchase and sales agreement including all amendments and counteroffers.
Survey
- If you have one, send it along, if not, no worries.
Property Tax Assessment
- If you don’t have a copy of the most recent property tax assessment, one can usually be found on the local municipality/city website. The most recent assessment will be required.
Other Documentation
Solicitor or Notary Information
- Please provide the name of your lawyer/notary, the firm, and their contact information.
Mortgage Statement
- If you are doing a mortgage refinance, please provide a copy of your current mortgage statement.
VOID Bank Cheque
- This is the account that your mortgage payments will be withdrawn from. A pre-authorized debit form works just as well.
As each mortgage is different, the documentation to satisfy each mortgage will vary somewhat. This list is a great place to start, but please know that more documentation may be required depending on your specific financial situation.
If you have any questions, please don’t hesitate to contact me anytime!
Saving for a down payment is one of the biggest challenges first-time buyers face. What many don’t realize is that the Canadian government offers a program designed to make it easier—the Home Buyers’ Plan (HBP) . This program allows you to withdraw money from your RRSP to help purchase your first home, without immediate tax consequences. Here’s how it works: Who Qualifies? To be eligible, you generally need to be a first-time home buyer. In practical terms, this means you must not have owned a home in the past four years, nor lived in a property owned by your spouse or partner during that time. There are also special allowances if you’re living with a disability or helping a relative with a disability. In these cases, you can use the HBP even if you’ve owned a home more recently. How Much Can You Withdraw? Under the program, you can access up to $35,000 from your RRSP as an individual. Couples can combine their withdrawals for a total of $70,000 . These funds must have been in your RRSP for at least 90 days before you take them out. Paying It Back The HBP isn’t “free money”—it’s an interest-free loan from your own retirement savings. You’ll have 15 years to repay the full amount back into your RRSP, starting in the second year after withdrawal. Each year, the CRA will send you an HBP Statement of Account outlining how much needs to be repaid. If you don’t make your repayment in a given year, that amount will be added to your taxable income. Why It’s a Smart Strategy The HBP can give first-time buyers a powerful boost toward homeownership. It helps you put together a larger down payment, which can reduce your mortgage amount and monthly payments. Just remember: it’s important to balance the short-term benefit of homeownership with the long-term impact on your retirement savings. Next Steps Thinking about using the Home Buyers’ Plan? Let’s sit down and review whether it’s the right move for you. Together, we can create a strategy that gets you into your first home while keeping your future financial goals on track. 📞 Reach out anytime—it would be a pleasure to guide you through the process.
On October 28, 2026, the Bank of Canada raised its key interest rate by 0.25%, bringing it to 2.5%. If you have a mortgage, are shopping for a home, or have a renewal coming up, this decision matters. Here is a plain-language look at what changed, why it happened, and what it could mean for you.
What Lenders Mean by “Good Credit” When You Apply for a Mortgage Credit is simply the ability to borrow money today based on the trust that you’ll repay it in the future. When you apply for a mortgage, lenders want proof that you’ve consistently honoured that trust by managing credit responsibly. But what does a good credit history actually look like to a lender? The 2 / 2 / 2 Rule Explained If you’re newer to credit or want a simple way to remember minimum mortgage credit requirements, think of the 2 / 2 / 2 rule: 2 active trade lines Established for at least 2 years With a minimum combined limit of $2,000 This is a common baseline lenders use when assessing credit for mortgage financing. What Counts as a Trade Line? A trade line is any account where credit is extended to you, such as: A credit card A line of credit A car loan A personal or installment loan Each trade line reports your payment history to the credit bureau and contributes to your credit score. For a trade line to be considered active , it must: Have been used at least once, and Show activity at least once every three months Why Time Matters Lenders want to see that you’ve managed credit responsibly over time , not just recently. Using two trade lines consistently for at least two years helps demonstrate stable financial habits and reliability. Understanding Credit Limits vs. Balances The credit limit is what matters—not the balance. For example: A $1,000 credit card + a $2,500 line of credit = $3,500 total limit This meets the minimum requirement You do not need to carry a balance to build credit. In fact, the best approach is to: Use your credit regularly Pay it off in full each month (for credit cards) Make all loan payments on time If your lender offers a credit limit increase and you’re managing credit well, it’s often a good idea to accept it. Higher limits—used responsibly—can strengthen your credit profile. A Simple Way to Build Credit Automatically One effective strategy is to: Put recurring bills on your credit card Set up an automatic transfer to pay the balance in full every month Automation helps build positive credit history without requiring constant attention—just be sure to monitor your accounts to ensure everything runs smoothly. What About Credit Scores? Yes, credit scores matter—but they’re not the whole story. If you: Have two active trade lines Established for two years With at least $2,000 in total limits And no missed payments …your credit score will generally take care of itself. That said, it’s still wise to review your credit report occasionally to check for errors or unfamiliar accounts. Final Thoughts If you’re thinking about buying a home in the next couple of years, now is the perfect time to review your credit and make sure you’re on track. Small adjustments today can make a big difference when it’s time to apply for a mortgage. If you’d like help reviewing your credit or understanding how it affects your mortgage options, feel free to connect anytime. I’d be happy to walk through it with you and help you plan with confidence.
