When you are applying to get a new mortgage, you will be required to provide documentation. It’s important to understand, for compliance reasons, that all documents provided must be complete (all pages), unaltered and clearly legible.
One of these documents is a letter of employment. This is to be done on a company letterhead and must show your start date, occupation, salary/wage and guaranteed hours.
Lenders are looking for certainty. If we see something on your letter that may not best position you, we will advise you immediately.
The person who wrote the letter will be called by the lender to verify the details, so it’s important that the person or someone with the same authority is available to take this call or call the lender back as soon as possible.
Most lenders require that Letters of Employment are not more than 30 days old when received by them.
Pay stubs are also required to support and confirm the letter. As with all documents requested, they must be clear and legible. If they are not prepared by a 3rd party, then bank account statements may be required to show the pay deposits going into your account.
If you have multiple sources of income, then your T1 Generals may be required. As with all documents requested, all of the pages must be included. We recommend that your accountant sends us electronic copies of these via email. It’s common for the last 2 or 3 years to be requested, based on your personal scenario and qualifications.
An income tax Notice of Assessment is often required. This is what you receive back from the CRA after you have filed your taxes. You can also get this from your accountant (depending on how they filed your taxes) or online by signing up for your PIN on the CRA website. If you have a tax balance owing, a Statement of Account reflecting a $0.00 balance or other confirmation of payment will be required. If you received a tax refund, then a bank statement showing the deposit of the return may be required to confirm authenticity.
Please keep in mind that all lenders reserve the right to ask for additional documentation at any time. We will always try to anticipate their requirements and manage them carefully in order to assist you. Everything required is requested by us at an appropriate time. We provide a strategy that will result in the lowest cost of borrowing and we will work in an efficient manner to ensure the smoothest possible completion of your mortgage.
DLC-Angela Calla Mortgage Team