IK Financial Metarials
Mortgage

Successful Closing Starts Here

Everything you should know before starting a mortgage process
Everything you should know before starting your mortgage process is on this page. All the information is created based on our experience and common buyer mistakes throughout the home-financing process.

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.
PLEASE, refer to our article "Avoid These Common Mistakes When Applying For a Mortgage."

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

  1. 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!


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ikfinancial.com

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