Private lenders ask for less paperwork than banks, but a complete file still gets a faster answer and often better terms. Use this checklist to get ready. Not every item applies to everyone, and your broker will tell you what matters for your situation.
For almost everyone
- Government photo ID for each borrower
- Most recent property tax notice for the property
- Current mortgage statement for any existing mortgage or secured line of credit
- Proof of home insurance
- A short explanation of what the money is for and how you plan to repay it
About your income
Private lenders don’t usually need the full income package a bank does, but they want to know the payments are manageable. Depending on your situation, that might be:
- Recent pay stubs or an employment letter
- Recent bank statements showing regular deposits
- Notices of assessment from the Canada Revenue Agency
- Pension or benefit statements
If you’re self-employed
- Business bank statements
- Business registration or articles of incorporation
- Recent notices of assessment
- A brief description of your business and how long you’ve run it
See private mortgages for self-employed Albertans for more.
If you’re buying a property
- The signed purchase agreement
- Proof of your down payment
- The listing or property details
If the money is paying off debts
- Recent statements for each debt being paid, such as credit cards, loans or collections
- Property tax arrears notices, if any
- CRA statements, if any. See paying tax arrears with a private mortgage.
- Consumer proposal documents, if you’re in or finishing a proposal
If it’s a condo
- Condo fee statement
- The latest reserve fund information and any notice of special assessments
Tips for a faster file
- Send everything at once rather than piece by piece.
- Be upfront about problems. Lenders find out anyway, and surprises slow things down.
- Make sure names and addresses match across documents.
- Keep your phone handy for lender and appraiser questions.
What happens next
Once your documents are in, the next step is usually the appraisal. See the full step-by-step process.
This article is general information, not financial or legal advice. Lender requirements, rates and fees change and depend on your situation.