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The Mortgage Kit: Start with proof of your income

DB15036_concepts_57933601We’ve all heard the scout motto “Be prepared”. It’s great advice if you need a mortgage. Assembling everything your lender needs to verify your income is a critical component of mortgage success.  A last-minute scramble for documents just adds to stress. Get a Mortgage Kit folder ready and begin collecting the verification you will need for your income type:

  1. Full-time salary:  Provide a recent pay stub and a “letter of employment” on company letterhead that confirms a) your position, b) your annual salary, and c) the length of time you’ve been in your position. If you’re a fairly new employee, lenders will want to know that your probationary period is over. And they will follow up. Commissions and bonuses can be supported by your last two notices of tax assessments.
  2. Commission, contract, part-time and seasonal employment: Company letter and paystub are required. Income must be consistent and can be proven with a 2 year average of tax assessments or T4s. If the position is contract, a copy of the contract and any renewals is required.
  3. Self-employed: Assemble:  a) two years of tax assessments, b) business license or registration, or articles of incorporation, c) your T1 general tax returns for the last two years, OR the last two years of accountant-prepared financial statements (if incorporated). Lenders recognize that self-employed income is kept low, so some expenses on your statement of business activities can be added back. If income is difficult to prove, be sure to have a strong credit history and downpayment.
  4. Child support: A copy of the separation/divorce agreement and three to six months bank statements are typically required. This income should be less than 30% of total income.
  5. Disability:  A letter confirming permanent status along with a paystub.
  6. Maternity Leave: Some lenders use full employment income if the employment letter confirms a return date within one year.
  7. Pension, RRIF, Investment income: Most recent tax assessment, T4A’s for pension income. There must be sufficient funds in the investment for the income withdrawal.

If you are fully prepared, then you’re always ready to take advantage of opportunities!


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Rent-to-own for beginners (6/7)

How are rent-to-own payments structured?

 

If you are looking to buy a home on rent-to-own and want to find out more information on how payments are structured, contact the mimortgage.ca team today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.


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Rent-to-own for beginners (4/7)

How much down payment do you need for rent-to-own?

If you have found a home to buy for rent-to-own and need advice on down payment options, contact the mimortgage.ca team  today. To get pre-approved today, apply now through our secure online website or speak to one of our agents at (866) 452-1100.


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Rent-to-own for beginners (1/7)

When should rent-to-own be considered?

Are you looking to buy a home but having difficulty in getting a mortgage? Rent-to-own might be an option that is better suited for you.

If you have found the ideal home for rent-to-own and would like more information, contact the mimortgage.ca team today. To get pre-approval today, apply now through our secure online website or speak to one of agents at (866) 452-1100.