Everything You Need to Know About Mortgage Documents

Why lenders ask for what they do—and how to make the process smoother.

The mortgage process can go one of two ways: quick and painless, or full of back-and-forth over document requests. The biggest factor is knowing what lenders expect and why.

Most people only go through this process a handful of times in their lives. We do it every day, so we know what lenders want, how to prepare it properly, and what can be negotiated or waived entirely. This guide outlines the standard document requirements for mortgage approval—whether you’re buying, refinancing, or switching lenders—and why they’re needed.

Let’s make this process smoother, with no surprises.

The Basics: What’s Always Required

No matter the type of transaction—purchase, refinance, or switch—these two documents are non-negotiable:

1. Government-Issued ID

You’ll need two pieces of ID—one primary (with photo) and one secondary.

Primary ID examples:

• Driver’s license

• Passport

• Canadian permanent resident or citizenship card

• Provincial photo card

Secondary ID examples:

• SIN card

• Birth certificate

• Credit card (signed & showing your name)

Important: Health cards are not accepted as ID. By law, lenders cannot collect or store health card data for ID purposes.

Lenders require copies of both sides of each ID, except for passports (photo page only).

2. Proof of Income

This looks different depending on how you earn your money.

Employed? Here’s What You’ll Need

Letter of Employment (LOE)

Must be dated within 30 days. It should include:

• Your position and start date

• Annual salary (or hourly rate + guaranteed hours)

If you’re hourly with no guaranteed hours, most lenders will average your income over two years. Even if you’ve consistently worked full-time hours recently, they’ll want the longer track record unless there’s a written guarantee from your employer.

Why they ask: The LOE is a snapshot of your employment and a point of contact for verbal verification. It helps confirm your income and your role. Tip: let your HR or manager know they may get a call.

Pay Stubs

At least one (dated within 30 days); sometimes two. If you’re on parental leave, you might not need one, but lenders may ask for your last pay stub prior to your leave.

Why they ask: To confirm what your LOE says and check that your income is consistent year-to-date.

T4s (Last 2 Years)

Only needed if your income includes non-guaranteed portions like commission, bonus, or overtime.

Why they ask: Lenders will average the non-guaranteed income over the past two years to arrive at an acceptable figure. If your income dropped, the lower number may be used.

Self-Employed? Here's What Lenders Need

T1 Generals (Last 2 Years)

Must be the full version—not the summary.

Why they ask: T1s break down income sources. NOAs alone don’t show where your money came from (EI, capital gains, CERB, etc.—not all count toward mortgage qualification).

Notice of Assessments (NOAs)

From the CRA, for the last two years.

Why they ask: To check if you owe income tax. If you do, lenders want confirmation it’s paid.

Articles of Incorporation or Business License

If you’re incorporated: Articles. If a sole prop or partnership: a valid business license.

Why they ask: To confirm the business is legitimate and established.

If you don’t have incorporation or a license, lenders may accept:

• CRA Return Adjustments

• Statement of Business/Professional Activities

• Accountant-prepared financial statements (last 2 years)

Financial Statements

Required if you’re incorporated.

Why they ask: They help assess the financial health of your business and the sustainability of your income.

Buying a Home or Condo?

Once your offer is accepted, you’ll need to provide:

Agreement of Purchase and Sale (APS)

The full version, signed by all parties. Include any amendments, waivers, and referenced schedules (e.g., Schedule B).

Why they ask: To confirm key details like price, deposit, closing date, and conditions.

MLS Listing

The full version from your realtor—not from Realtor.ca. Must include property taxes, lot size, square footage, and property age.

Why they ask: It verifies the details of the property. Missing info means more follow-up—or an appraisal.

Down Payment Documentation

90-day bank or investment history for all accounts used. Transfers between accounts? You’ll need 90-day histories for both. Each statement must show your name and account number. Screenshots with no name won’t be accepted.

If the down payment comes from:

• Sale of property: APS for sold property + trust ledger after closing

• Gifted funds: Gift letter from immediate family + account statements + wire transfer (if from abroad)

Why they ask: To comply with anti-money laundering laws. Every dollar must be tracked and documented.

Refinancing or Switching Lenders?

The process is generally easier since there’s no down payment. But lenders still require:

Mortgage Statement

From your current lender, showing the property address, names on title, payment details, and maturity date.

Why they ask: To confirm your current mortgage details. Needed for transfers or debt consolidation.

Property Tax Bill

Final bill (not interim). If unavailable, contact your city’s tax office.

Why they ask: Lenders use this to calculate your debt ratios. It’s required—even if your income is high.

Fire Insurance Certificate

Must be in effect on the closing date. If you’re in a condo, get the insurance certificate from the condo board.

Why they ask: To ensure their investment (your property) is protected.

Special Employment Scenarios

Lenders need extra clarity in the following cases:

• Probation: LOE must mention the probation end date. Most lenders are okay with it if your background shows stability.

• Parental Leave: Lenders can use 100% of your income if you’re returning within 12 months. LOE must confirm the return date.

• Contract Work: LOE should state contract end date and renewal terms.

• Part-Time: Without guaranteed hours, lenders will usually require a two-year history.

Why Lenders Ask for So Much

Approving a mortgage means lending you hundreds of thousands of dollars. If you were the lender, you’d want to know exactly who you’re dealing with.

Mortgage fraud is a growing issue. Lenders are under strict scrutiny to verify documents—and for good reason. If audited, missing info could cost them big. That’s why they double-check everything, even verbally confirming your employment.

It may feel excessive, but it’s all about risk mitigation. The more confident they are in your file, the faster and smoother the process will go.

What If a Document Seems Over-the-Top?

If a request seems unreasonable, we’ll flag it and try to get it waived. We’ve been through this over 2,000 times—we know what’s standard and what’s not. But in the end, lenders can ask for anything they feel is necessary. Sometimes it’s not even their call—it comes from their investors or internal risk teams.

Bottom line: we advocate for you, but we also manage expectations to avoid surprises.

Final Thoughts

The mortgage process isn’t always fun, but it doesn’t need to be stressful. Our job is to guide you through it, keep you informed, and handle as much of the heavy lifting as possible. Some applications are straightforward. Others require a few extra steps. Either way, we’ll make sure things get done on time—and done right.

We know what’s required, what’s optional, and what’s negotiable. And we’re here to get you across the finish line with confidence.

Let’s make this the best mortgage experience you’ve ever had!