Before embarking on the journey of purchasing a property in Quebec, it is absolutely necessary to obtain a pre-approval from a financial lender. A pre-approval not only provides you with a clear understanding of your budget but also demonstrates your credibility as a serious buyer. To streamline the pre-approval process, it is essential to gather all the necessary documents before discussing with a financial institution. This article will guide most prospective homebuyers in Quebec by highlighting the key documents required by the pre-approval process.
1 – Proof of Identity:
To establish your identity, you will need to provide a valid government-issued photo ID, such as a passport or driver’s license. Although self explanatory, expired documents, or documents from another province or country may not be valid.
To establish your identity, you will need to provide a valid government-issued photo ID, such as a passport or driver’s license. Although self explanatory, expired documents, or documents from another province or country may not be valid.
2 – Proof of Income:
Lenders require proof of income to assess your ability to pay the mortgage. Depending on your employment situation, the following documents may be required:
Lenders require proof of income to assess your ability to pay the mortgage. Depending on your employment situation, the following documents may be required:
Salaried Individuals:
• Recent pay stubs showing year-to-date income
• T4 slips or Notice of Assessment (NOA) from the Canada Revenue Agency (CRA) and Provincial Gov for the past two years
• Employment verification letter from your employer, including details such as your position, length of employment, and salary information
• Recent pay stubs showing year-to-date income
• T4 slips or Notice of Assessment (NOA) from the Canada Revenue Agency (CRA) and Provincial Gov for the past two years
• Employment verification letter from your employer, including details such as your position, length of employment, and salary information
Self-employed Individuals: (Gets a bit trickier here 
)
)• Business financial statements (income statement, balance sheet) for the past two years, prepared by a certified accountant
• Notices of Assessment (NOA) from the CRA and Rev Qc for the past two years
• Notices of Assessment (NOA) from the CRA and Rev Qc for the past two years
• Business registration documents or articles of incorporation
• Bank statements reflecting business revenue and expenses
• Bank statements reflecting business revenue and expenses
Commission-based or Variable Income Individuals:
• Recent pay stubs or commission statements for the past two years
• T4 slips / Notices of Assessment (NOA) from the CRA and Rev Qc for the past two years
• Employment verification letter stating your average income over the last two years
• Recent pay stubs or commission statements for the past two years
• T4 slips / Notices of Assessment (NOA) from the CRA and Rev Qc for the past two years
• Employment verification letter stating your average income over the last two years
3 – Proof of Assets and Liabilities:
You will need to provide details about your assets//liabilities, which may include the following:
– Bank statements for the past three to six months, including savings, checking, and investment accounts
– RRSP/TFSA statements
– Proof of any other investments or assets, such as property or vehicles
– Details of existing debts or loans, such as credit cards, student loans, or car loans
You will need to provide details about your assets//liabilities, which may include the following:
– Bank statements for the past three to six months, including savings, checking, and investment accounts
– RRSP/TFSA statements
– Proof of any other investments or assets, such as property or vehicles
– Details of existing debts or loans, such as credit cards, student loans, or car loans
4 – Other Documents:
Depending on your individual circumstances, additional documents may be necessary, including:
– Divorce or separation agreements
Depending on your individual circumstances, additional documents may be necessary, including:
– Divorce or separation agreements
– Proof of child support or alimony payments
– Proof of rental income from investment properties
– Bankruptcy or consumer proposal discharge papers, if applicable
– Proof of rental income from investment properties
– Bankruptcy or consumer proposal discharge papers, if applicable
Although the above information may seem daunting and stressful, a pre-approval is one of the most essential parts of the home buying process, it is where the journey begins and truly lays out the most important aspect of the buying process your budget To ensure a smooth pre-approval process and show readiness it is imperative to gather all the necessary documents beforehand. Remember that not everyone has all the above mentioned documents // information and that you should evaluate your own scenario and prepare what is relevant to your situation. We invite you to consult with any mortgage broker or financial institution and if you do not know anyone, reach out and we will refer you to the best 3-5 professionals we know!
