MORTGAGE DOCUMENTS: WHAT LENDERS REALLY NEED FROM YOU

Mortgage lending in Canada has become more detailed and documentation-heavy, and lenders now require much more proof before approving financing. This isn’t to make your life difficult — it’s to prevent fraud and ensure you can comfortably manage the mortgage.

Here’s a clear breakdown of what lenders will request and why it matters 👇

1️⃣ Income documents

Lenders must verify that your income is stable and consistent.

✔️ confirms you can repay the mortgage

✔️ prevents future affordability issues

✔️ required by lenders and insurers

Your income type determines which documents are needed.

2️⃣ Self-employed income

Self-employed borrowers must show two full years of income history.

✔️ 2 years tax returns

✔️ business financial statements

✔️ CRA Notices of Assessment

Accountants can send documents to ensure nothing is missing.

3️⃣ Rental income

Rental income must be verifiable and consistent.

✔️ lease agreements

✔️ T1 with rental schedules

✔️ proof of rent deposits

Unclaimed rental income can affect how lenders calculate eligibility.

4️⃣ Guaranteed employment income

Traditional employment requires recent and verified documentation.

✔️ pay stubs

✔️ job letter

✔️ 2 years of tax documents

Lenders will call your employer to confirm details.

5️⃣ Commission, overtime, bonus, seasonal, or contract income

Variable income requires a two-year average for qualification.

✔️ pay stubs

✔️ job letter

✔️ 2 years of T1s

✔️ 2 years of NOAs

Averaging protects lenders from relying on fluctuating income.

6️⃣ Liabilities and ongoing obligations

Lenders verify all debts — not just what appears on your credit report.

✔️ mortgage statements

✔️ property taxes

✔️ child or spousal support

✔️ CRA balances

Government debt must be paid before refinancing or approval.

7️⃣ Down payment and closing cost verification

All funds must be sourced and traceable for at least 90 days.

✔️ bank statements

✔️ gift letters

✔️ deposit proof

Lenders must confirm the money is legitimate and available.

8️⃣ Documentation rules for banks and financial institutions

Statements must clearly show ownership and account details.

✔️ name and account number visible

✔️ e-statements preferred

✔️ teller-printed statements must be stamped

Screenshots are acceptable only if the institution’s name and your name are visible.

💬 Final Thought

Document requirements may feel overwhelming, but they protect both you and the lender by confirming income stability, debt obligations, and legitimate savings. Preparing documents early makes your approval process faster and smoother.

If you want a customized checklist based on your income and situation, The Frontline Mortgage Group can create one that ensures you’re fully prepared before applying.