Mortgage Articles

The Process of Applying for a Loan

Whether you are applying for a mortgage in Calgary or Edmonton, how smoothly the process goes is entirely up to you. Be prepared to do some leg work up front by gathering the paperwork listed in the following section. Having all of this information before contacting a mortgage broker will make the process go much faster.

Note: Please use the following list as a guideline only because individual circumstances may require more or less documentation than listed. Check with your local Alberta mortgage broker for specifics that relate to your personal application and situation.

Alberta Mortgages: Required Paperwork

The following financial documents are required when applying for a mortgage in Calgary, Edmonton, or any major centre in Alberta:

• Copy of most recent pay stub: This proves your current earnings, which is your most important requirement when applying and qualifying for a mortgage.
• Notice of Assessment (NOA): This confirms that you are not behind on any tax payments and verifies income. You can obtain a duplicate of your notice of assessment or notice of reassessment. This is generally only required if you are self employed. See http://www.cra-arc.gc.ca/formspubs/frms/ppr_nly-eng.html#vouchers Payment forms and remittance vouchers for more information.
• Copy of T-4s: This proves your specific earnings over a period of time. Sometimes mortgage lenders need this to calculate your average income. This is not always required, but have it ready in case it is requested.
• Bank Statements: Mortgage lenders need to know the source of your down payment. If your down payment is coming from savings, providing three months of bank statements will be sufficient proof. With mortgage fraud being a concern, lenders look for large and recent or random deposits which are a red flag (e.g., the money is not coming from you, but from an extraneous source).
• Gift Letter: If you are applying for a mortgage in Alberta and you are receiving money as a gift (not a loan) from a family member or friend to assist with a down payment, you require a letter to explain the gift. We will provide this letter to the lender, from the donor, stating a gift of money was made to the buyer to purchase a specific property. The relationship of the donor and gift-giver should be stated, as well as the amount of the gift. This is to prove that you are not borrowing money for a down payment. Your Alberta mortgage broker can assist you with this letter.

Additional Information

Other helpful information required to obtain a mortgage in Alberta includes:

• Employment Letter from most recent employer: This proves you are employed. This letter must be on company letterhead and should outline the following: the amount of time you have been employed; whether you are full or part time; your title or position; the number of hours you work during a given week; how much you are paid (usually stated as an annual amount); and your employer's name; telephone number; and address.
• Social Insurance Number (SIN): Although optional, your SIN assists the mortgage broker in obtaining an accurate credit inquiry. Also, if you have a common name, such as John Smith, you may be asked for your SIN to guarantee we are requesting your credit history from the credit bureau and not someone else's credit history.

Note: You may need to provide additional information if employed by your current employer for less than three years.

All funds necessary to complete a real estate transaction in Canada must be accounted for to aide in the prevention of mortgage fraud.

Alberta Equity has helped over 50,000 people find and qualify for the best mortgages in Canada for over ten years. We do all of the heavy lifting and ensure that you get the best mortgage rates and product features available. Apply online for a free, no obligation consultation or alternatively, view our products and services.