Information the Lender Wants from You

Before you can expect the lender to provide financing, you will need to supply the lender with information that allows the lender to evaluate your ability to pay. If you have a co-borrower, your co-borrower will need to supply the same information.

The lender uses something called gross debt service (GDS) and total debt service (TDS) ratios to compare your income with your outstanding debt. The lender will also look at your assets and liabilities, your earnings, and employment history. Your credit record is also considered, because lenders consider a person who has paid their debts faithfully and on time a better risk than someone who has a poor credit history.

You can expect the lender to ask for personal information such as age, marital status, and the number of dependents you have. T-4 slips and personal income tax returns are used to review your income and a letter stating your position with your employer may also be requested.

You will be asked if you have any other sources of income. If you claim you have income from pensions or rentals, you will need to provide proof of this income. Your personal income tax return is one possible type of proof.

Expect to provide copies of your current bank statements and proof that you have the down payment in savings.

Your mortgage broker will run a credit check and forward it to the lender to prove the quality of your credit status.

Provide a list of your assets such as property and vehicles. Also break down your liabilities such as credit card balances and car loans. Show how much you owe and how much your monthly payment is for each account.

The lender will ask for an appraisal of the property on conventional mortgages only. It will be your responsibility to pay any appraisal fees. If an appraisal has been performed recently, you may be able to provide a copy of the appraisal report as long as it’s valid.

If you are seeking a high ratio mortgage, you will need to pay mortgage default insurance fees.

You will also need a copy of the property listing. If you are purchasing an existing property,  you will need a copy of the agreement of purchase and sale and MLS listing.  If you are working with the builder on a new home, you will need to submit plans and cost estimates.