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Mortgage Planner, Advisor and Broker

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Applying For Your Mortgage Loan - A Checklist

photo - Front door to a luxury home.
When you apply for a mortgage, you will need:
  • A copy of the accepted offer to purchase and the land survey
  • A salary letter from your employer (self-employed buyers need financial statements for the past three years as well as personal income tax returns)
  • Confirmation that your down payment came from your own resources (e.g. bank statements or a gift letter)
  • A list of all your assets and debts along with account numbers
  • A copy of the real estate listing if buying an existing home
  • Condominium or strata financial statements, if applicable
  • If you are buying a home to be constructed, or being constructed, bring a picture of the property, a copy of the building plans and specifications, the land survey, plus your agreement with the builder

I can help you determine how much you can afford, obtain a pre-qualified approval, and select the mortgage that's right for you. This allows you to act quickly when you find the home you want.

Pre-Approved Mortgage / Rate Holds

Many banks will only hold a pre-approved mortgage rate for 60 to 90 days. I will monitor the rates for you and automatically renew your pre-approval, should rates change unfavourably, or when coming close to the pre-approval expiration period. Most of the lenders I work with offer a 120 day pre-approval period.

Different Lenders

Did you know there are considerable differences between mortgage lenders? Most people believe they are pretty much the same. However, they are not created equal, and it’s important to shop them all and find a mortgage that’s the best fit for you.

The main differences between lenders include:

  • Payment Flexibility
  • Prepayment Options (Some banks can be quite restrictive in this area)
  • Rate Hold Period
  • Prepayment Penalties
  • Interest Rates (Of course!)
  • Approval Documents (Some banks will require considerably more documentation if you are self-employed, and /or live in a strata unit. In the case of the latter, they may ask for copies of strata council meeting minutes, annual general meeting minutes, and a copy of the strata corporation’s annual tax return.

On this topic, please note that all strata organizations are corporations, in which the members are the owners, and, as such, must file an annual tax return, regardless of whether the strata must pay tax in a particular year.

An example of potential tax implications is in the case of larger strata corporations which might rent out their recreational facilities or meeting / multi-purpose rooms to any party, be they members of the corporation or not. The rent is then considered as income, hence the tax return requirement.

If you are considering the purchase of a strata unit, be it a condominium or townhouse (stand-alone or not), I urge you to check if the corporation has been filing an annual tax return. If not, there are potential penalties which can be applied to the strata corporation (of which you will become an owner or shareholder), just as with any type of corporation.

Dara was very helpful and quick in getting back to me… I was pre-approved for a mortgage some time ago but when that expired I thought the process would become drawn out and time consuming. However, I saw a place I liked and was given the green light to make an offer the very next day. Why go to a bank when that level of service is available from Dara. I will recommend him to others without hesitation.

Jeff N. Toronto

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