Buying or Refinancing

BUYING OR REFINANCING?

It is a good idea before you set out to buy property or refinance an existing property to know exactly what you will need to provide. After you have gathered all your information you can put your affairs in order. 

We suggest that you consider the following steps:

1.   Credit Score. Obtain a copy of your bureau score and credit report from either Equifax or Trans Union. Once you have your report review it and ensure that the information in the report is accurate.

2.   Costs and Penalties. If refinancing, call your current bank and determine what penalties and costs that you may be responsible for if you refinance your mortgage. Consider asking them what they will do for you if you keep your business with them.

3.   Establish Proof of Income. Whether dealing direct with a bank or with a mortgage broker the prospective lender will need to know how much you make so that they can determine how much debt that you can successfully service. So save everyone, including yourself time by getting together:

a) Letter of Employment. Obtain from your employer. It should outline what position you have, when you started and what the current payment arrangements are, e.g. monthly salary, hourly rate and average hours worked and so forth;

b) Two Recent Pay Stubs. Provide if receive employment income (last two years available); if are self-employed (last two years available); and,

c) Notices of Assessment (last two years available).

4.  Statement of Assets and Liabilities. Make sure the statement is dated and signed. Rent Roll. If the property is a rental or you have multiple rental properties then you should have ready for the broker or lender a list of tenants for each address or unit, the rent payable, property taxes, condo fees if applicable, the mortgage payment payable and the date the mortgage is due.

5.  Proof of down Payment. Unless you are doing a refinance and you already own the property, your broker, banker, lender, will want to know that you have sufficient resources for the down payment PLUS the moneys necessary to close the deal when the time comes. The proof typically comes from three months bank statements or statements for an investment or mutual fund account, T.F.S.A. or G.I.C.

6.  Subject Property Information. You will need to provide the broker, banker or lender with all the pertinent information of whatever address or property you are looking to buy or mortgage including:

a) The address (civic and legal);

b) Description of Property, e.g. bungalow, split-level, two storey or condo, square footage, lot size, number of bedrooms, garage or not, and so forth (the more detail the better so consider using the MLS listing or municipal tax summary if available);

c) List of renovations, additions or improvements;

d) Purchase price and date of purchase;

e) Condition removal date or subject-to date, if applicable;

f) Closing or possession date, if applicable;

g) Copy of the Agreement of Purchase and Sale, if applicable; and,

h) Copy of last appraisal, if available.