Pre-Approvals
If you fail to plan, you plan to fail.
Pre-approval Guide
What is a pre-approval?
A pre-approval is a preliminary assessment to determine your eligibility for a mortgage. This process involves the review of your financial information, credit history, income, and other relevant factors to estimate the amount you may be qualified to borrow.
Why get a pre-approval?
A pre-approval is necessary to determine your buying power in the market. Realtors need to know your maximum buying power to narrow down your property search within your budget range.
How to obtain a pre-approval?
Your mortgage broker or financial institution will gather your financial documents and assess the following:
Gross annual income
Credit score
existing liabilities (e.g. car loans, line of credits, etc.)
available assets for downpayment
Once your documents have been examined, you will know the mortgage solutions available to you.
How to prepare for a pre-approval?
Know what documents you need and have them prepared prior to speaking with your mortgage broker or bank. See below to learn what documents you may need based on your unique situation.
Document Glossary
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2 most recent paystubs within the last 30 days
T4 2021
T4 2022
Employment Letter
2 pieces of ID
3 months bank statements
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Full T1 Generals from the 2 most current tax year filings (must contain statement of business activities)
Notice Assessments corresponding to the two T1 Generals provided
CRA Statement of Accounts proving taxes have been paid
When Incorporated: Business Financial Statements associated with 2 most current tax years filed.
ID
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Letter from Benefits Provider
3 months bank statements showing LTD deposits
2 years T4A’s if applicable
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Last paystub prior to leaving for maternity leave
Letter of employment stating return to work date and rate + guaranteed hours/salary upon return
Last 2 years T4’s if applicable
Child tax benefit document if applicable
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Along with the necessary income documents pertaining to each individual applicant:
Contract of Purchase and Sale
Floor Plan
Completion Notice
Disclosure of Strata Fee
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Along with the necessary income documents pertaining to each individual applicants;
Mortgage Statement
Property Tax Notice
Strata Fee if applicable
Tenancy agreement if applicable
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Along with the necessary income documents:
Tenancy Agreement
3 months bank statements showing tenancy deposits
If Filed: 2 years T1 Generals showing T776 Statement of Real Estate Rentals
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Updated Letter of Employment if outside the last 30 days
Updated paystub within the last 30 days
90 day bank history if not already provided showing downpayment and closing costs
From Realtor:
Accepted offer
MLS
PDS
Strata Property: Form B with attachments, 2 years AGMs, Depreciation Report if applicable
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Along with the necessary income documents:
Contract of Purchase and Sale of Sold Property
Statement of Adjustments from sold property if closed
Contract of Purchase and Sale from New Property and any applicable documents indicated in “Purchase (Accepted Offer)”