Mortgage Paperwork & Documentation
When you’re applying for a mortgage, it all comes down to the paperwork. Lenders want to see proof of everything—no one’s taking anyone’s word for it these days.
When a lender approves a mortgage, they need to have all the right documents in their file to back up their decision.
The specific documents (essential paperwork) you’ll need will depend on your personal financial situation, how you earn your income, and whether you’re a resident of Canada.
Here’s what you can expect to find below:
- What to do if you don’t have a scanner.
- A list of the most common documents needed for mortgage approval, plus a brief explanation of why each one is necessary, along with sample documents for reference.
This guide will help you stay on track and get everything ready for your mortgage application.
No Scanner? No Problem…
PDF is the go-to format for submitting mortgage paperwork.
If you’ve only got paper copies and don’t have a scanner, don’t worry! You can use your smartphone to take photos of your documents and turn them into PDFs, just like a scanner would.
One app I recommend is Fast Scanner. It’s free and works for both Apple and Android phones. It can handle both single-page and multi-page docs.
When you’re snapping photos, make sure to do it right so the documents are clear. Here are a few tips:
- Turn on your flash for the best lighting
- Lay the document flat on a table or the floor, and keep your fingers out of the shot
- Make sure the entire document is in the frame—no chopped-off corners
- Take the photo straight on, not at an angle
- It’s ok if we can see your toes – as long as the whole document is in the picture, toes are acceptable 🙂
This way, you’ll get nice, clear scans that are perfect for submission! (and don’t fret, if the app won’t work for you, I’ll take jpg files too 🙂 )
When taking photos of your documents please ensure that all 4 corners of the document are visible, that no parts of the page are cut off, and that the text on the page is legible. Don’t forget that we need ALL pages of the document, so even if it’s 4 pages and the last page is 2 lines of text, please sent it over – the want to make sure that nothing is being hidden
Forms of ID
Sample Driver’s License
This is the most common form of identification used to show legal name and current address.
Sample Permanent Residency Card
This document is used to prove Permanent Resident status in Canada.
Personal Income Docs – Employee
Letter of Employment (a.k.a. LOE, Job Letter or Employment Letter) is a standard requirement for all mortgage applications. The job letter goes hand in hand with a paystub. The Employment letter shows Lenders the details of the applicant’s position and the paystub confirms that the applicant is in fact working for that employer and earning the amount stated on the letter. If you’re employed – the job letter and paystubs are essential paperwork that we will need.
Sample Paystub
This provides a breakdown of your earnings and is a cross reference to the employment letter to confirm your income.
Personal Income Docs – Self Employed
If you’re self employed (but not a corporation), there’s two routes we can go – stated income via 6 or 12 months bank statements, or by using your last 2 years of T1’s. Bank Statements – you need to provide us with 12 months of PDF statements downloaded from your online banking – similar to the sample below. For T1’s – please get these from your tax software or your tax person and make sure it’s the version that has all the schedules and pages. It’s a stack of paperwork, but we know what we’re looking for inside it.
Income Tax Docs
T4 – Employment Income Form
If your income fluctuates due to multiple income sources or your earn overtime or shift premiums, the T4 shows your total income from that specific employer for that specific tax year.
T4A/T5 – Retirement Income, Pension, Annuity & Other Income
If you earn income in a way other than salary or wage (such as commission or pension for example) this form documents your income details for that specific income source for that specific tax year.
Notice Of Assessment (NOA)
The Notice of Assessment is issued by CRA as confirmation of your taxable income and whether there is money owing to CRA or not.
T1 General
If you are self-employed or have multiple sources of income, the T1 General provides a breakdown of all of your gross and net earnings.
Other Sources of Income
If you regularly receive payments from Canada Child Benefit (CCB), Pensions (private or CPP), disability (this could be private, like from Canada Life, Veterans, or CPP), rental income, investment income (we’ll need T5’s for this – see the tax section) spousal or child support or other sources, submit statements for these as well. Earnings from other sources of income may impact how much mortgage you can afford in the eyes of a lender.
In almost every case for these other types of income, lenders will want to see three months of bank statements showing these funds being deposited into a bank account via bank statements that show your name & account number (this proves ownership of the account)
CCB
A recent CCB statements from the “Mail” section of the Canada Revenue Agency (CRA) confirming the amounts you receive. We can only use CCB for kids that are under the age of 15. We will also need proof of the kids ages via birth certificates or services cards
CPP and OAS (Canada Pension Plan & Old Age Security)
CPP and OAS (Canada Pension Plan & Old Age Security)
Recent payment statements or tax slips as well as official letters from Service Canada confirming the amount of your monthly or annual CPP/OAS income.
Child or Spousal Support
A separation agreement is a must if there are minors involved. This document will need to be signed by all parties and dated. The lenders will also look for a history of at least 3 months of payments via bank statements, and we are required to use the amounts found in the separation agreement.
Disability
This can be in the form of Veterans Affairs, CPP, Provincial or even Private – as long as your letter says it is “Permanent” or “Pension”. You’ll need to provide documentation that confirms the amount and duration of your LTD benefits. This could include official statements from your insurer or your LTD policy outlining the monthly payments you receive.
Down Payment Docs
| Proper Bank Statements are ESSENTIAL. As previously mentioned, we need 3 months of bank statements for your down payment account (and sometimes to prove other forms of income) and if you’ve transferred money between accounts or made any large deposits, then we will need statements for those accounts as well to show the source of the transferred funds. It may feel like a lot of paperwork, but these need to be very specific due to AML rules. When you submit bank statements to your broker or advisor, please ensure it shows these very important things: Your name. Yes, the statement must have your name (or how else do we know that this is your account and not your neighbours?) The date range that the statement covers The account number NO REDACTED INFORMATION – No really. Please don’t do it. We honestly don’t care if you’re subscribing to OnlyFans, or if you visit the beer store every day, I promise. |
| Gifted Down Payment Most lenders will accept gifted down payment. There are some restrictions, so check with your broker. This is a sample of what a gift letter would look like. Each lender has their own template, so please wait for your broker to send you the correct one. |
Property Docs
| Sample Property Tax Statement The property tax statement is issued annually by the city or municipality you live in as a notice of what your property taxes for that year will be. |
| Sample Mortgage Statement If you currently have a mortgage, your mortgage Lender will issue an annual statement outlining the details of your mortgage such as the remaining balance owing, your mortgage payment, interest rate as well as the previous year’s activity. If you own a property already, the annual mortgage statement is paperwork you can’t skip |
If you don’t have a lot of established credit, whether you are young, new to Canada, or possibly you just don’t use credit much, Lenders will often request something commonly referred to as “alternative forms of credit.” What they are looking for is proof that you are capable of making regular payments on something. A preferred form of alternative credit is a “rent” or “landlord letter” because usually a monthly rent payment is a similar amount to what a mortgage payment would be so Lenders like to see that you’re capable of a significant financial responsibility.
