A preapproval can be done either in person or through my online application. The application is going to ask you for personal information in order to determine whether you’ll qualify for a mortgage or not.

 

Personal information includes:

• Full legal name

• Date of birth

• SIN

• Phone number

• Email address

• Current and previous addresses (3 year history)

• Employment situation, current and previous (3 year history)

• List of assets such as vehicles, investments, savings

• List of debts such as credit cards, line of credit, loans

• Information on any other properties you own such as rentals, cabins etc

 

Once this information is collected we pull a credit report through Equifax to make sure your credit history is in good shape.

 

Paperwork that is required during a preapproval:

• 2 most recent years T4s

• 3 recent paystubs

• Letter of employment

• 3 months bank statements to show your down payment

• Child tax benefit statement and proof of children's ages

 

If you are self-employed:

• 2 most recent years full T1 generals and statement of business activities

• 2 most recent years Notice of Assessments

• Business financials for 2 years (if incorporated)

 

If you own any properties:

• Recent mortgage statement

• Recent property tax bill

• Lease agreements if you own a rental

• Possibly full T1 generals with statement of real estate activities (varies by situation)

 

There are sometimes additional paperwork required depending on your specific situation. This is just a general outline.

 

A pre-approval is important when shopping for a house as sellers want to be sure you’ve talked to your mortgage lender so they aren’t wasting their time accepting your offer. A pre-approval is NOT a guaranteed approval so it is still important to put a financing condition in your offer. Your real estate agent will help you with that.