- A file checklist is a key component for ensuring that the required documentation is obtained on every transaction. This prevents the embarrassment of having to go back to a client for additional documentation in the future and provides a quick summary of what is in the file. If the file is broken into sections based on the checklist, then every file will follow the same order, allowing the mortgage agent to know where to find specific documents in any file.
- A T5 is an information slip provided to a taxpayer who receives:
- eligible dividends and dividends other than eligible dividends (including most deemed dividends)
- interest from one or more of the following:
- a fully registered bond or debenture
- money loaned to or on deposit with, or property of any kind placed with, a corporation, association, organization, institution, partnership, or trust
- an account with an investment dealer or broker
- an insurance policy or annuity contract (when the interest is paid by an insurer)
- an amount owing as compensation for expropriated property
- Other payments as indicated by CRA
- Form T2125, Statement of Business or Professional Activities, is used to report a taxpayer’s business and professional income and expenses. This form can help the taxpayer calculate their gross income and their net income (loss), which are required when they complete their Federal Income Tax and Benefit Return.
- This is the Canadian tax return that individuals complete every year to calculate whether they owe tax on their income.
- T4: typically when a Borrower has salaried or hourly employment income
- T4A: typically when a Borrower has commission income
- Job Letter: typically when a Borrower’s income or position information is required
- Paystub: typically in addition to a Job Letter to confirm that the individual is still employed and that the YTD income matches the Job Letter
- NOA: typically to support income verification for a previous year and/or to confirm that there are no income taxes outstanding
- Agreement of Purchase and Sale: typically when a Borrower is purchasing a property
- Gift Letter: if the Borrower is using funds for his or her down payment that has been given to him or her by a family member
- Property Assessment: can be used by the Agent to support the Borrower’s value of his or her house. It is not used to confirm the value nor will the Lender accept this, but it can support the value.
- Property Tax Bill: used to confirm the amount of taxes payable and if any property taxes are outstanding
- Mortgage Statement: typically used to confirm the outstanding balance of a Borrower’s current mortgage when refinancing
- Status Certificate: required when financing a condominium unit
- An MLS will provide details about the property, its sale price and Realtor information.
- This document proves that an individual has been given advice by his or her lawyer with regards to the proposed mortgage. It is usually required when the proceeds of a refinance are being provided to a third party and not the Borrower or if the loan is a reverse mortgage.
- This must be completed in every transaction, since part of the application is the waiver. If the Borrower(s) want the insurance the full application must be completed, if they do not they must complete the waiver section.
- A gift letter is a document that outlines the terms of a gifted down payment in a purchase transaction. Money provided by a family member to be used as a down payment, as long as it is not repayable to that family member, can be used in lieu of the borrower having to use their own funds for the down payment. This form must be completed by both the recipients, or the purchasers, and the donors, who are the family members providing the gift to the recipients.
- Assets = Liabilities + Owner’s Equity
- Notice that figures up to section 6150 are whole numbers only and do not have any cents. Have a look for this when reviewing a borrower’s document to ensure it is authentic.
- It should be on company letterhead, have the company address and contact information, list the Borrower’s position, income, how it is paid (i.e. salary or hourly), the frequency of payment (i.e. weekly), if the person is full or part-time and/or on probation, the start date and the writer’s information and contact information.
- This is a tool that can be used for studying purposes.
- No, it currently costs $500 per year for 50 reports
- No, it should be obtained when doing a switch or refinance
