Income & Documentation Guidelines

Minimum Document Requirements

Only applications with a minimum document package will be considered for underwriting. Documentation must be current at time of submission (i.e. paystub within last month etc.). Refer to each section for specific documentation requirements.

Documents can be emailed to brokercentre@coastcapitalsavings.com

Do not email documents directly to the Underwriter. If a document package is not received within 24 hours (not including weekends), your application will be sent back and will not be placed in our underwriting queue.


Purchase Documentation

Here is an example of what is required with a minimum document package:

  • Current income documents* this includes confirmation of rental income
  • Purchase agreement (including Property Disclosure Statement, any Addendums or Assignment Contracts if applicable)
  • MLS
  • 30 day confirmation of down payment
    • Verification of Down Payment as applicable:
      • Where any portion of the down payment is from savings in bank account – a 30 day account history is required
        • if 30 day history shows a wire transfer in, provide details on source of funds (i.e. where are funds from (location)) and how they were acquired (i.e. sale of property, etc.)
      • Identify any gifted portion – noting a signed Gift Letter can be a condition of approval
      • Sales Contract – if from sale of property (MLS if listed and not yet sold)
      • Draft confirming deposit amount
  • 12 months of strata minutes and most recent AGM for High Ratio strata property applications only

Refinance Documentation

Here is an example of what is required with a minimum document package:

  • Current income documents* this includes confirmation of rental income
  • Current mortgage statement (if mortgage not reporting on bureau)
  • If mortgage is currently insured by CMHC or Genworth, please include the certification #

Down payment confirmation

  • Down payment funds should include all applicable closing costs e.g. property purchase tax, HST (if applicable), legal fees etc.
  • Down payment funds must be either held on deposit with Coast Capital Savings or confirmed as held in trust with the conveyancing law firm
  • Where any portion of the down payment is from a Bank Account, we require a 30 day history of savings prior to the commitment

Gifted down payment

  • For insured mortgage a gifted down payment must come from a relative or immediate family member only, gifts from another source are not permitted for insured mortgage.
  • We require a letter of confirmation verifying the gift is unencumbered, requires no re-payment, states relationship of giftor to giftee, and verification of the existence of the gift is attached.
  • In addition to Gift Letter, the funds are to be on deposit in the borrower's account prior to closing or obtain confirmation that the funds were sent directly to the solicitor.

Income Documentation

Clients who have regular full time employment require minimum 6 months with their current employer or 6 months with similar experience.

Obtain two of the following:

  • Direct Deposit (2 months)
  • Current YTD (within last 30 days) pay stub
  • Current Job Letter (within last 30 days)

One of the following items can be submitted as an alternative to one of the items above:

  • Most recent T4 (subtract Box 40 from total in Box 14)
  • Most recent CRA Income Tax Return (T1G or CRA Tax Summary Notice)
  • Most recent Tax Assessment Notice (NOA)

Same as above (Employed Arms Length)

  • Employment verification requires more diligence as its usually a direct family member
  • Additional documentation may be requested to support the information provided by the employer, for example; last two year’s NOAs

Regular income guidelines are applicable when the employment is permanent part time with guaranteed hours.

Collect one form of income verification as follows:

Pension Pay Stub within the last 30 days; or Letter from the organization providing the pension income

Direct Deposit (2 months history) (Coast Capital Savings Account)

Direct Deposit (2 months history) (Other Financial Institution)

Grossing up OAS and CPP and Employer Pensions

Old Age Security (OAS), Canadian Pension Plan (CPP) and Employer Pensions can not be grossed up like we allow for arm's length employed direct deposit

Your client must be currently self-employed with at least two years experience. We require the following for income verification:

  • Last 2 years T1 Generals, including Statement of Business Activities, AND
  • Last 2 years NOA. Use an average of 150 income
  • For declining income, the lesser of the 2 years must be used
  • Average of Line 150 to be used
  • 15% gross up of Line 150 is allowed for Sole Proprietors and Partnerships
  • Confirmation that no more than $1,500 is owing in taxes
Your client must be currently self-employed with at least two years’ experience. We require the following for income verification:
  • Last 2 Years Accountant Prepared Financial Statements AND Last 2 years NOA's OR
  • The last 2 years Corporate T2's along with the General Index of Financial Information (GIFI) AND Last 2 Years NOA's
  • Use an average of Line 150 income. For declining income, lessor of the two years must be used
  • Confirmation that no more than $1,500 is owing in taxes
  • Financial Statements to confirm the income showing on the NOA is consistent with what is paid out by company, and that it is sustainable
  • Business should display consistent or improving sales with positive retained earnings

Fluctuating income includes the following:

  • Bonuses
  • Commission
  • Overtime
  • Gratuities
  • Casual Part Time

For all forms of fluctuating income, the applicant’s most recent pay stub along with two years of NOAs/T4s must be collected.

Two year average income must be used.

For declining income the lessor of the two years must be used.


Clients who are currently self-employed as realtor (with a minimum of two years experience) will need to present:

  • Last 2 years personal NOA’s and corresponding T1 Generals
    • Average of Line 150
    • If Line 150 contains multiple sources of income, it may be more appropriate to use an average of line 101, 120, 135 or 139.
    • For declining income, lessor of the two years must be used
    • No gross up allowed for Realtor’s Income
    • No gross up allowed for Realtor’s Income
    • If taxes are less than $1500 no further documentation is required to show they are paid

Last 2 Years NOA's and corresponding T1 Generals

  • Average of Line 150.
  • Confirm there are NO taxes owing.
  • If taxes owing are less than $1500 no further documentation is required to show they are paid.
Clients currently receiving support payments will need to present a copy of the Court Order or Separation Agreement or T1 General and corresponding Notice of Assessment.
  • If no separation agreement exists, the client will need to present one of the following:
    • Recent cancelled cheques
    • Current copies of bank statements (showing 6 months regular deposits of a consistent amount)
  • The party PAYING the support can deduct this amount from their gross income. 
We do not use this benefit amount for income.

Income Letter
OR
Contract from the Ministry
AND
Current Pay Stub (within last 30 days)

  • The letter from the Ministry of Social Services must confirm tenure and current status
  • Caregivers must have at least two years’ experience as foster parent
  • Maximum number of children should not exceed six (including any of their own children)
  • The applicants must live on site
  • Income cannot be ‘grossed up’

Employment Letter (must be verbally confirmed) Plus previous year’s NOA or T4

  • Obtain a job letter confirming the applicant is returning to work in a reasonable time from the date of the loan.
  • Regular employment income excluding OT/Bonuses etc. should be used for qualifying purposes.

Clients currently receiving permanent disability pension will need to present:

Employment/Insurance Company Letter

Letter from benefit payor (insurance company, WCB, employer etc.) should outline the following:

  • Benefit payments
    • Confirm status is permanent> Meaning the benefit is payable for life or will at least be payable for the term of the loan
    • If income is taxable
  • Also collect Current pay stub within last 30 days or two months of consistent Direct Deposit

Conventional Owner Occupied (Maximum 2 suites)

Must be verified by any ONE of the following:

Refinance:

  • Obtain rental/lease agreement or
  • Most recent T1 General or CRA Tax Summary Notice accompanied by the Statement of Real Estate Rentals.
  • Full appraisal with an opinion of economic rents from a CCS approved appraiser confirming the suite(s) are rented.
  • For owner occupied progressives, if an economic rent on the current residence has been obtained for the progressive mortgage application, it can be relied upon in support of a refinance application up to a period of 18 months.

New Purchase:

  • Appraisal with economic rents from a CCS approved appraiser.
  • Economic rent letter from a CCS approved appraiser with MLS listing confirming suite.

Owner Occupied Principal Residence:

  • CCS will use income from a maximum of 2 secondary suites in an Owner Occupied residence.
  • Use 100% add back to income of *Gross Rental Income from up to two secondary suites. Taxes and heat can be excluded in the calculation of debt service ratios.
  • Insured mortgages must comply with insurer's rules.

Revenue Properties must be verified by way of any ONE of the following:


New Purchase:

  • Appraisal with economic rents from a CCS approved appraiser

Residence Converting to a Rental:

  • Economic rent letter from a CCS approved appraiser.
  • If there are concerns over the condition of the property or suitability as a rental, a rental inspection with pictures should be considered.

Existing Rental Property (Refinance and Non-Subject Rental Properties) one of the following:

  • Obtain rental/lease agreement.
  • Most recent T1 General or CRA Tax Summary Notice with accompanying Statement of Real Estate Rentals.
  • Six months of bank deposits
  • Opinion of Economic rents from a CCS approved appraiser confirming suites are rented.

Residence Converting to a Rental.

  • Economic rent letter from a CCS approved appraiser.
  • If there are concerns over the condition of the property or suitability as a rental, a rental inspection with pictures should be considered.
Contact us.
For more information, email our Broker Centre.
Toll-free fax: 1.866.399.8080