Documentation: Purchase Transactions for Salaried Borrowers

Here is a summary of the documentation that lenders will typically require from salaried borrowers on purchase transactions.

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General Information

• A copy of the Purchase & Sale Agreement and the MLS listing.
• A copy of a photo ID for each borrower.
• A void cheque from the account your mortgage payments will be drawn from.
• The name of the lawyer you will be working with to close the transaction.
• A current Equifax or Transunion credit report (to be pulled by us with your written permission).

Income Verification

• A letter from your employer confirming your position, your annual salary, and the total time you have worked at your organization.
• A copy of your most recent pay stub.
• If we are using bonus or commissioned income: A copy of your T4s for the most recent two years.

Down Payment Verification

• Three consecutive months of bank/investment statements from the account(s) you used for your initial deposit, and that you will be using for the remainder of your down payment and closing costs.
• If part of the down payment is a gift from family, we will provide a copy of the lender’s gift-letter form to be completed and signed, and the lender will also require a bank statement confirming that the gifted funds have been deposited into your account (when available).
• Note: Additional documentation may be required in cases where bank statements show large deposits (as per our federal government’s anti-money laundering regulations).

Appraisal

• The lender may require an appraisal (to be confirmed when your mortgage approval is issued).
• If an appraisal is required, the appraiser will contact the seller’s real-estate agent to schedule an on-site inspection once payment has been made.

Examples of Additional Items Which May Be Required in Specific Cases

• Divorce/separation agreement.
• T1 Generals and T4As and/or T5s if pension, dividend or interest income is being used.
• Water test if property uses well water.
• For other properties you own: Most recent mortgage and property-tax statements, current leases (if applicable).