This industry is full of jargon—we get it! Here’s your one-stop shop for understanding any mortgage term you’re unfamiliar with.
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Closing costs are the fees associated with the purchase of your home that are in addition to the actual purchase price, such as legal fees and disbursements, land transfer taxes and moving expenses. The actual detailed closing costs are unknown until very close to your closing date as there are details from the seller and their lawyer among other things that may not be confirmed until very close to closing. The guideline is approximately 1.5% of the purchase price but it may be higher or lower based on the specifics of your situation. Please note you must provide evidence of available cash for closing costs equal to 1.5% of the purchase price so they know you will have enough money for the extra closing costs.
Property
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Contact Person: Account Manager
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A New Home Warranty Certificate is a document confirming the New Home Warranty policy in place.
Property
Contact Person: Account Manager
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A Title Search determines whether there is a clean title on a piece of property or whether there are liens, mortgage charges or other defects, such as public record errors, which prevent it from being transferred between parties.
Property
Contact Person: Account Manager
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Strata Documents can include things like Form B, strata minutes, depreciation reports etc.
Property
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The waiver form allows the buyer to waive a condition (financing, for example) and complete the contract without reference to fulfilling the condition. It is usually an addendum to the original contract.
Property
Contact Person: Account Manager
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An Agreement of Purchase and Sale is a written contract between a seller and a buyer for the purchase and sale of a particular property. In the Agreement, the buyer agrees to purchase the property for a certain price, and it lists terms and conditions that need to be satisfied by both parties, as well as important dates.
Property
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A Property Tax Notice is a document that outlines how much property tax is owed on a property. It must include the Address, Name of the Owner and be for the current year.
Property
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A Property Tax Certificate is a receipt that indicates your property taxes are paid.
Property
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A Property Disclosure Statement is often referred to as a PDS. The disclosure statement requires the seller to disclose any known issues with the property. This may include faulty electrical circuits, pending litigations, rodent infestations, buried oil tanks etc.
Property
Contact Person: Account Manager
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A Mortgage Statement is a document used to summarize the mortgage loan details such as balance owing, payment, principal and interest paid, interest rate, term, amortization, etc.
Property
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The MLS listing is prepared by the realtor and provides the basics about a home: the price, taxes, types of utilities, and square footage. It may also give the breakdown of the number of floors, size of the rooms and their location within the home. They almost always contain a photo of the home.
Property
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A Home Inspection is completed by a certified home inspector who will assess the property's condition.
Property
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The Final Builder Statement of Adjustments is a document from the Builder that confirms the final purchase price inclusive of all upgrades and HST, all deposits received by the Builder, closing date, and civic address
Property
Contact Person: Account Manager
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A Condo Board Letter is a document used to indicate whether the condo has sufficient reserve funds to ensure no special assessments will be needed.
Property
Contact Person: Account Manager
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A Home Appraisal is carried out by a professional appraiser who is impartial and does a thorough physical inspection of the property to determine its actual value. Notably, the appraised value isn't always the same as the actual listing price. The appraiser will create a report of everything they find — both good and bad — to help determine a home’s appraised value, along with an estimate of market value, remaining economic life and cost replacement value. Market value is determined from the property's condition and recent comparable sales.
Property
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The T5 Statement of Investment Income is a document that identifies any interest earned throughout the year on non-registered investments such as interest, dividends, capital gains, and royalties.
Income
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The T4RSP is a document used to confirm how much money someone has withdrawn or received from their registered investment and how much money was taxed.
Income
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T4E is a document that summarizes Employment Insurance Benefits (EI, CREB, and any other income received by Service Canada)
Income
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The T4A(OAS) is a document that summarizes OAP Pension Income received during the calendar year.
Income
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The T4A(CPP) is a document that summarizes CPP Pension Income received during the calendar year. .
Income
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T4A(P) is are a set of documents that summarizes benefits received from the Canadian Pension Plan.
Income
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T4A is a document that summarizes the income earned from self-employed commission income, contract income, annuity income, pension income, grants, scholarships, and other income that an employer does not pay.
Income
Contact Person: Account Manager
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T4 is a form used to summarize all of the money paid by an employer to an employee during a calendar year. It is used by individuals to help when preparing their taxes
Income
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T3 Trust Income is a document used to summarize investment income from a personal trust, estate trust, or mutual funds in a non-registered account (dividends, interest, capital gains)
Income
Contact Person: Account Manager
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The T2 Corporate Income Tax Return is a form used by business owners to calculate their annual tax liability from their business operations.
Income
Contact Person: Account Manager
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The T1 Statement Of Rental Income is used by rental property owners to report their rental income and expenses for income tax purposes. Each property is listed separately by address on the form.
Income
Contact Person: Account Manager
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This is used by non-incorporated businesses (sole proprietors and partnerships) to report their self-employed income on taxes. It is essentially an income statement that lists the business's name, business type, and corresponding income and expenses.
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Contact Person: Account Manager
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The T1 General is a form by individuals to calculate their annual tax liability. It includes all sources of income and deductions. ***For the T1 and any other CRA documents, if the clients don't have online access to CRA My Account and need to set up online access, then the client will have to wait up to 14 days for a security code to be mailed to them to complete their account activation.***
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This document is an alternative way to provide proof of business income. This is generally only accepted by non-prime lenders.
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A Separation Agreement is a legally binding contract between two spouses at the time of their separation. The contract outlines each party's rights and responsibilities
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A Pay Stub is a document that is provided by an employer that outlines the specifics of each pay period.
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A Notice of Assessment (NOA) form is sent to individuals from the government to let you know if you owe the government taxes or if they owe you money.
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Contact Person: Account Manager
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A Letter of Employment is a short, straight-to-the-point letter that verifies your job title, salary and work history.
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Contact Person: Account Manager
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When a borrower has a pension that is administered/run by a private third-party company (i.e. Canada life) the borrower can request a letter from this company outlining the details of their pension payments. This functions similarly to an LOE however is used for pensioned borrowers. This is only applicable to private pensions, NOT CPP
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Contact Person: Account Manager
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A Lease Agreement is a rental agreement is a contract of rental, usually written, between the owner of a property and a renter who desires to have temporary possession of the property.
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Contact Person: Account Manager
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A Final Pay Stub Calendar Year is the last pay stub that will show the year-to-date income. It can sometimes be used before a client being issued their T4 for a calendar year.
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Contact Person: Account Manager
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A CRA Statement of Account is used by individuals to confirm that any taxes shown on an NOA as owing have been paid in full.
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Contact Person: Account Manager
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Corporate Financial Statements is an annual statement used to summarize the financial status of a business corporation, including information on what the company owns, owes, and how much money it has made and spent.
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Contact Person: Account Manager
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The Child Tax Credit is a non-taxable income amount paid to families to help with the cost of raising families with children under 18 years old. (CCB) You can also contact the CRA to have one sent by mail. However, this can take up to 60 days.
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A Business License is a document issued by a government authority that allows the owner of a business to operate within the country, province, territory, or municipality that issues the licence.
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Audited Financial Statements for a business that are generally prepared by an accountant. That has been audited to confirm there is no fraud within the business.
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Articles of Incorporation are documents filed with a government body to create a corporation legally.
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Contact Person: Account Manager
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When a borrower is receiving a disability insurance payment that is administered/run by a private third-party company (i.e. Canada life) the borrower can request a letter from this company outlining the details of their disability insurance payments. This functions similarly to an LOE however is used for borrowers receiving short or long term disability income.
Income
Contact Person: Account Manager
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90 Days Banking History from the date the file is submitted is required for proof of down payment if coming from client's own resources. You need a 90-day history for each account the down payment is in. If the down payment is spread over multiple accounts, then you need histories on all those accounts.
Down Payment
Contact Person: Account Manager
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A Tax-Free Savings Account (TFSA) is a type of i account in which contributions, interest earned, dividends, and capital gains grow tax-free. Money withdrawn from it is also tax-free.
Down Payment
Contact Person: Account Manager
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This is a legally binding contract between two or more people for the sale of the described property. We need this to confirm the sale date of the previous property, as well as estimate how much equity is available when being used for a down payment.
Down Payment
Contact Person: Account Manager
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RRSP Statement is a statement from the financial institution with a 90-day history of the account.
Down Payment
Contact Person: Account Manager
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A Realtor Deposit Receipt is a receipt that confirms the buyer paid a specific amount of money towards the deposit on their offer to purchase
Down Payment
Contact Person: Account Manager
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Line of Credit Statement is a statement from the financial institution confirming the available credit to be used for down payment.
Down Payment
Contact Person: Account Manager
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90 Days history from the date the file is submitted. Many investment accounts only issue quarterly statements, so you may need to request an updated balance depending on when the following statement is due.
Down Payment
Contact Person: Account Manager
Short description:
A Gift Letter for a mortgage is a written statement confirming that funds given to a borrower for a down payment are a gift rather than a loan that has to be repaid. The letter must explain who is gifting the money, the address of the property its being gifted for and the relationship between the donor and the recipient as well as confirmation that there is no expectation of repayment.
Down Payment
Contact Person: Account Manager
Short description:
A bank statement with the deposit transaction for the funds received from the giftor. This amount should match the amount on the gift letter.
Down Payment
Contact Person: Account Manager
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Banking history confirming the source of funds used to pay the Realtor Deposit on the offer to purchase.
Down Payment
Contact Person: Account Manager
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Client's usually get a bank draft/certified cheque to do a "Deposit on Offer" for a new purchase.
Down Payment
Contact Person: Account Manager
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12-months of bank statements can be provided in addition to or instead of a lease agreement.
Credit
Contact Person: Account Manager
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Proof of US Credit is a document used to verify an individual's credit history in the United States.
Credit
Contact Person: Account Manager
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Proof of Foreign Credit is a document like International Credit Bureau or six months foreign visa statements.
Credit
Contact Person: Account Manager
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Proof of Collections Paid is a document from the collection agency or the creditor confirming the balance is fully paid.
Credit
Contact Person: Account Manager
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When lenders require Proof of "Alternative Credit," especially for programs like "New To Canada," they want to see: 12 months of bank statements, 12 months of rent deposits, a landlord reference letter, six months of foreign visa statements, 12 months of phone bills or utility bills, bank reference letter.
Credit
Contact Person: Account Manager
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A Void Check is provided by the customer along with the lender’s PAD form to tell the lender what account to debit the mortgage payments from.
ID
Contact Person: Account Manager
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A PR Status Card-ID is used by borrowers who are not Canadian citizens but have permanent resident status in Canada. These borrowers are typically treated the same as Canadian citizen borrowers.
ID
Contact Person: Account Manager
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A Passport is a formal document with a photo issued by an authorized official of a country to one of its citizens that is usually necessary for exit from and reentry into the country, that allows the citizen to travel in a foreign country in accordance with visa requirements.
ID
Contact Person: Account Manager
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Health Cards are issued by local, and provincial governments and often look a lot like a driver's license. They verify enrollment in regional health benefit plans.
ID
Contact Person: Account Manager
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A Drivers License is issued by the local provincial gov't and should contain a photo, a current address, birthdate, and photo.
ID
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Lender Forms
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Lender Forms
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info@getflowmortgage.ca