Q: What documents are required to get a mortgage? Then vs. Now
In the past, we required the following to commence a file:
Preliminary form of income validation (paystub if salaried or previous year NOA if self-employed)
Since January 1, 2018, the new government imposed mortgage rules requires us to collect more documents up front:
Salary Letter from Employer
Recent paystub (within 30 days of application)
Previous years T4
Last two years Notice of Assessments from CRA if Self Employed
Last two years T1 General filed with CRA if Self Employed
Articles of Incorporation or Business License if Self Employed
6-12 months Business Bank Statements if Self Employed to validate active business activity
2-4 actual invoices to match deposits in bank Statements
Property Tax Statement if existing homeowner
Current Mortgage Statement if existing homeowner
However, required documents vary from case to case. Please chat with us so we can do the heavy lifting for you.
Q: What is a HELOC?
Home Equity Line of Credit (HELOC) is a type of mortgage that is secured against your home. As you pay off your mortgage and build up equity in your home, a HELOC allows you to gain access to your home equity to use the funds you need. But keep in mind that you cannot exceed 65% of your home's value. People usually use HELOC to:
Consolidate high-interest debt (for example: pay off credit cards)
Renovate their home
Pay for higher education, expand your current business, etc…
Q: Why should I consider home renovations?
When considering moving or renovating existing homes, people sometimes choose the former option. Sometimes it’s financially wiser to do the home renovations instead of moving because buying a new home will lead to several fees including land transfer fees, legal fees, realtor fees, updating new home costs, etc. A few key renovations can increase the value of your property. If you’re a homeowner we can help you get a home renovation loan based on your home’s equity.
Q: Why should I consider refinancing my existing mortgage?
There are numerous reasons why borrowers may choose to refinance the mortgage they already have. Some of these include:
Consolidate high-interest debts into a much better financial plan with:
Lower monthly payment
Shortened mortgage terms
Renovate your existing property
Personal investments (i.e: expand your current business; pay for post-secondary education cost; purchase a new car...)
Purchase an investment property
Your Next steps:
Send us your details in the form so we can get in touch. Couldn’t be bothered with a form? Don’t worry.