Could a missing paper delay a mortgage or auto purchase more than expected?
They will find clear, practical information here to help them prepare a complete application. This short guide lists the key identity, address and income files a Canadian lender usually requests.
It explains how requirements change by employment type — salaried, commissioned and self-employed — and what files prove assets, liabilities and the source of a down payment. It also previews vehicle-specific add-ons like a pro forma invoice, log book or appraisal.
The aim is to help readers submit accurate details the first time and avoid back-and-forth during the credit review and at closing. With this checklist, applicants can expect smoother processing and clearer timelines.
At‑a‑glance checklist for Canada: what to gather before you apply
Start by collecting core identity, address and income items so the lender can verify the file quickly.
Have one valid, unexpired photo ID and one current proof of address ready. Acceptable proofs include a deed, a recent utility bill, a recent tax assessment or a Canadian bank statement.
Salaried applicants need a current letter of employment and the most recent full monthly pay slip showing recent pay and an issue date. Commissioned workers should add a letter of employment plus six months of pay slips.
Self‑employed borrowers must provide business registration or licence, the most recent annual return where applicable, two years of tax returns or audited statements, and six months of bank statements that match declared earnings.
Print or save account statements that show the down payment source. Include a signed gift letter when funds come from a donor. Collect asset proofs and current statements for credit cards, loans and mortgages so the lender can total obligations.
Date each copy and keep PDFs with clear file names to cut review days and speed the application process.
Documents for loan approval: individuals and households
A neat file with dated pay slips, bank statements and proof of assets helps underwriters decide faster. A salaried borrower should include a current employment letter on company letterhead plus a pay slip showing the most recent full monthly income.
Commissioned applicants must add a letter and six months of pay slips to show income variability and averages. Self‑employed borrowers need a business registration or licence, the latest annual return where relevant, two years of tax returns or two years of audited financial statements, and six months of bank statements that match declared income.
Every application should show the source of a down payment using account statements, and a signed gift letter when funds are gifted. Provide evidence of assets such as investment or bank statements, property valuations and vehicle titles.
Disclose liabilities with current credit card, loan and mortgage statements so debt ratios are clear. For a vehicle purchase, attach the agreement of sale or pro forma invoice, the log book for a used car, and an independent appraisal when requested.
Keep names, dates and totals consistent across all papers to avoid follow‑up and speed the process.
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Small business and commercial borrowers in Canada: documentation and eligibility
Small businesses must match their purchase plans to program limits before contacting a lender.
To qualify, the company must operate in Canada and report annual gross revenues at or below $10 million. Primary agriculture is excluded under this program.
Funding can reach up to $1,000,000 total. Within that cap, no more than $500,000 may fund equipment or leasehold improvements. Up to $150,000 of that sub‑limit may cover intangible assets and working capital costs.
A separate line of credit for working capital can be approved up to $150,000 and does not count toward the $1,000,000 term cap.
Eligible assets include real property, leasehold improvements, equipment (including business software and vehicles used by the business), intangibles, working capital costs and the registration fee. Exclusions include share acquisitions, personal‑use vehicles and assets already financed by a term facility.
Only purchases completed within 365 days before the approval date may be financed. Term facilities require proof of purchase and payment (invoices, cancelled cheques, account records) with clear asset descriptions. Lines of credit require a borrower attestation instead.
Appraisals are needed when acquiring assets from a non‑arm’s‑length party, buying a going concern (with price allocation), or purchasing assets that were secured to a conventional loan. The eligible amount is the lesser of cost or appraised value.
Credit approval evidence, insurance and closing documents
Final credit checks focus on the source of funds, title status and evidence that closing can proceed on schedule.
Underwriters verify down payment sources using bank statements or cheque copies and will request a gift letter when relatives provide funds. They match asset and liability statements to confirm net worth and spot undisclosed credit.
To show the purpose of the loan, submit a signed sale or purchase agreement, payoff confirmations for debts to be settled and contractor estimates or a statement of works where relevant.
For real estate, include the mortgage deed or certificate of title, a current land register extract and annual property tax statements. Leasehold files must show a lease expiry at least five years beyond mortgage maturity and current rent receipts.
Condominium and townhouse packs should add strata insurance proof, up‑to‑date maintenance fee receipts, a lender‑ordered appraisal and a recent water bill. Prior to closing, arrange property insurance (fire and all perils) assigned to the lender for at least the mortgage amount or replacement value. Autos require comprehensive insurance assigned to the bank.
At closing the borrower signs final loan and security paperwork and shows that processing fees and closing costs are held in the designated account. Ensure payment terms, interest type and any conditions precedent appear correctly to avoid delays.
Ready to submit in Canada: assemble, verify and date your file for approval today
Careful assembly and a final checklist help turn weeks of waiting into days. Confirm each copy is current, dated and clearly named. Include one valid photo ID, a recent proof of address and the income paperwork that matches employment type.
Match amounts, names and account numbers across every document to avoid rework. Show source of down payment with a bank statement or a signed gift letter and add property tax statements, title papers and insurance assigned for the correct amount when the file is a home mortgage.
Summarize monthly payment estimates, reconcile costs and list any outstanding conditions. Submit the application only after this quick review so underwriters can complete their assessment within days.
