Document Formatting
- Send documents in PDF format;
- Ensure all bank statements include your name, account number and bank name;
- Communicating via email will result in quicker response times;
- Send required documents all at one;
- Properly labeling your documents will speed up the process;
- Include all pages of your documents i.e, your complete tax return.
Material Changes
- Do not change jobs during the process;
- Do not obtain any new credit such as loans, lines of credit or credit cards;
- Do not spend your down payment. Keep it secure and readily available;
- Do not co-sign any credit for anyone;
- It is extremely important that nothing changes with your situation after you are pre-qualified and before your mortgage funds.
Down Payment
- Avoid multiple transfers between accounts;
- Out of country assets must be in Canada for a minimum of 30-90 days depending on the lender;
- Ensure RRSP's have been in the account for a minimum of 90 days, in order to use towards Home Buyers Withdrawal;
- Lenders look for a 90-day down payment history to ensure the savings are accumulated and that the funds are not borrowed;
- Do NOT redact any bank account statements, alter, or void out any items on your statement;
- If you are receiving gifted down payment, please let us know up front;
- Gifted funds must be from an immediate family member (mother, father, sister, brother, sibling, grandparent).
Self-Employed Individuals
- Sole Proprietorship - We will require the following:
- Copy of your business license;
- The last two years of your complete Personal Tax Return along with the statement of business activities;
- Previous two years Notice of Assessment
2. Incorporated - We will require a copy of the following:
- Articles of Incorporation;
- Last two years Financial Statements;
- Last two years of your full Personal Tax Returns;
- Previous two years Notice of Assessment.
3. Salaried Individuals
- Most recent pay-stub dated within the last 30 days;
- Letter of Employment written on company letterhead stating your position, start date, guaranteed hours per week, and signed by the author;
- Last two years T4’s.
Credit History
- Dispute any errors that could hurt your score;
- Get free copies of your credit reports from either Equifax or Transunion;
- Pay all your bills on time, and keep credit balances as low as possible (preferably 50% below the limit);
- Do not obtain new credit, unless advised to;
- Ensure minimum credit is established (minimum 2 credit accounts with 2k limit for 2 years).
Miscellaneous
- When a co-signer is involved, consider 99/1% (tenants in common);
- If purchasing a principal home that is rented, ensure you get vacant possession;
- Work with a professional team (Mortgage Agent/Broker, Realtor, Lawyer, Home Inspector and get pre-qualified BEFORE shopping);
- Confirm your lawyer is insured to do real estate and has no disciplinary;
- When in doubt, ask!
IK Financial Mortgage Team operates on behalf of Mortgage Edge. Lic#10680
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