Mortgage Application Process

The Value and Limitation of a Pre-Approval

  •          Pre-Qualified vs. Pre-Approval
  •          Auto approval vs. Lender Review
  •          Pre-approvals NEVER reviewed by Insurer (CMHC, CG or Genworth)
  •          State Income/Business For Sell

Capital Lending Centre Pre-Approval Process

  •          Always obtain credit bureau on every applicant
  •          Educate all clients to understand the process
  •          Verify type of income (commission, hourly, etc.), then request appropriate documents for initial consultation
  •          Determine down payment sources, amounts and discuss closing costs
  •          Discuss property taxes and maintenance/condo fees
  •          Qualifying Ratios, and what that means
  •          Determine payment comfort level and ensure they are NOT over extended every month

What Happens if Your Client Can't Get Pre-Approved & Reasons Why

  •          Colorful Credit - review options to improve the credit
  •          Various income challenges
  •          No down payment

What Happens When Your Client Purchases a Property?

  •          Obtain MLS listing & signed Purchase Agreement from agent
  •          Submit to lender and/or insurer for mortgage approval
  •          If appraisal is required, order immediately
  •          Collect recent income (employment letter, paystub) & down payment verification
  •          Coach client about applying for any other credit before closing date
  •          Confirm conditions have been met to sign waivers


First Time Home Buyer

Documents Required

  •          Two most recent years T4's issued by employer and/or two most recent years Notice Of Assessment's issued by Canada Revenue Agency
  •          Most recent pay stub (no more than 30 days old)
  •          Letter of Employment on company letterhead confirming: start date, job title, income and a contact at the company
  •          Verification of Deposit & Down Payment

o   Last 90 days history for any and all accounts the funds are coming from (chequing, savings, RRSP, TFSA, etc.)

o   Must show name of account owner, account number and transaction details to oblige by the government's Anti-Money Laundering Regulations

  •          Contact info for your Solicitor/Lawyer acting on your behalf to close the transaction
  •          Void cheque OR Pre-Authorized Debit Form for the account the mortgage payments will be drawn from
  •          Life/Disability Insurance?

Please note: These are guidelines of documents required and that more supporting documentation may be requested to close your mortgage transaction.

If you have any questions, please feel free to contact me. I'm happy to help!


Renewal/Refinancing

Documentation Required

  •          Two most recent years T4's issued by employer and/or two most recent years Notice Of Assessments issued by Canada Revenue Agency
  •          Most recent pay stub (no more than 30 days old)
  •          Letter of Employment on company letterhead confirming: start date, job title, income and a contact at the company
  •          Current mortgage statement showing: rate, balance, maturity date, amortization
  •          Contact info for your Solicitor/Notary acting on your behalf to close the transaction
  •          Void cheque OR Pre-Authorized Debit Form for the account the mortgage payments will be debited from
  •          Life/Disability Insurance!

Please note: These are guidelines of documents required and that more supporting documentation may be requested to close your mortgage transaction.

If you have any questions, please feel free to contact me. I'm happy to help.


Repeat Buyer

Documentation Required

  •          Two most recent years T4's issued by employer and/or two most recent years Notice Of Assessment's issued by Canada Revenue Agency
  •          Most recent pay stub (no more than 30 days old)
  •          Letter of Employment on company letterhead confirming: start date, job title, income and a contact at the company
  •          Verification of Deposit & Down Payment

o   Last 90 days history for any and all accounts the funds are coming from (chequing, savings, RRSP, TFSA, etc.)

o   Must show name of account owner, account number and transaction details to oblige by the government's Anti-Money Laundering Regulations

    •          Current mortgage statement showing: rate, balance, maturity date, amortization
    •          Contact info for your Solicitor/Lawyer acting on your behalf to close the transaction
    •          Void cheque OR Pre-Authorized Debit Form for the account the mortgage payments will be debited from
    •          Life/Disability Insurance?

    Please note: These are guidelines of documents required and that more supporting documentation may be requested to close your mortgage transaction.<

If you have any questions, please feel free to contact me. I'm happy to help!


Business For Self/Self-Employed Buyer

Documentation Required

  •          Two most recent years of T1 General & Statement of Professional Activities, as well as Notice Of Assessments
  •          Copy of Business License
  •          Verification of Deposit & Down Payment

o   Last 90 days history for any and all accounts the funds are coming from (chequing, savings, RRSP, TFSA, etc.)

o   Must show name of account owner, account number and transaction details to oblige by the government's Anti-Money Laundering Regulations

  •          Contact info for your Solicitor/Lawyer acting on your behalf to close the transaction
  •          Void cheque OR Pre-Authorized Debit Form for the account the mortgage payments will be debited from
  •          Life/Disability Insurance?

Please note: These are guidelines of documents required and that more supporting documentation may be requested to close your mortgage transaction.

If you have any questions, please feel free to contact me. I'm happy to help!


Lawyer's List of Required Information

This is a list of items the lawyer working on your transaction may ask for. This list is to be used as a guide only. Your lawyer may in fact ask for other documentation not on this list. We will also ensure that the lawyer receives instructions for your mortgage prior to funding. Typically, the lender we are using, issues the instructions to the lawyer 7-10 days prior to the closing date. Should your lawyer contact you in regards to instructions or something else that you don't have an answer to, please have them contact our office of the lending institution.

  •          Two (2) pieces of valid ID
  •          Proof of Home Insurance for your new/current property
  •          Void cheque OR Pre-Authorized Debit Form
  •          Letter of Employment
  •          Account statements for any debts being paid out (if applicable)
  •          Up to date statement for your Property Taxes (if applicable)
  •          Existing mortgage statement (if applicable)

We strongly recommend talking to your lawyer about homebuyer's Title Insurance. Please begin working on this list as soon as possible to assist your lawyer in closing the transaction smoothly and on time.

If you have any questions, please feel free to contact - Emerson Munsayac -  http://www.munsayacfinancial.com/index.php/about

I'm happy to help!

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