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*
  • 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:

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.
  • For Casual/Part time with no guaranteed hours, most recent pay stub along with two years of NOA's and/or T4/T1G should be collected. Two year average income should be used.
  • For declining income the lessor of the two years should be used.

Clients currently receiving pension income can present two of the following income verification types:

  • At least two months of consistent direct deposits at a financial institution
  • A pension pay statement showing your client’s full name and amount of pension benefit
  • A T4, T1 or NOA of the most current year. For pension income a T4 and NOA may be considered two sources.
  • Coast Capital Savings does not consider RIF income under these guidelines
  • Old Age Security (OAS) or Canadian Pension Plan (CPP) cannot be grossed up

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

If your client would like to use commission, overtime or bonuses as declared income, they’ll need to present:

  • Last 2 years personal NOA. Use an average of line 150 income.
  • For declining income, the lesser of the 2 years must be used
  • A current year to date pay stub (within last 30 days) or direct deposit to support average income used
  • Confirmation that no more than $1,500 is owing in taxes

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

  • Last 2 years personal NOA. Use an average of line 150 income.
  • Confirmation that no more than $1,500 is owing in taxes

Clients claiming interest, capital gains or dividends as income must have confirmed investments supporting an average income, and will need to present:

  • Last 2 years personal NOA. Use an average of line 150 income.
  • Confirmation of income producing investments
  • Confirmation that no more than $1500 is owing in taxes
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’
Income to be verified via normal guidelines and 100% of the income can be considered. For high ratios applications, a job letter is required confirming the applicant is returning to work in a reasonable time frame.

Clients currently receiving permanent disability pension will need to present:

  • A benefits letter from the insurance company including benefit payment amount, confirm permanent status and taxable status
  • A current pay stub (within last 30 days)

New Purchase:

Must be verified by ONE of the following:

  • Appraisal with economic rents from a Coast Capital Savings approved appraiser ordered through Solidifi
  • Economic rent letter from a Coast Capital Savings approved appraiser with MLS confirming suite. The economic rent letter does not have to be ordered through Solidifi

Existing Revenue Property:

Must be verified by ONE of the following:

  • Obtain rental/lease agreement
  • Most recent T1 General including the Statement of Real Estate Rentals or CRA Tax Summary Notice
  • Appraisal with economic rents from a CCS approved appraiser
  • 6 months consistent bank deposits

Existing primary residence with suite:

Must be verified by ONE of the following:

  • Obtain rental/lease agreement
  • Most recent T1 General including the Statement of Real Estate Rentals or CRA Tax Summary Notice
  • Appraisal with economic rents from a Coast Capital Savings approved appraiser
Equity Lending & Alternate Lending products – Income Documentation requirements are located under Lending Guidelines for each Equity Lending product
Contact us.
For more information, email our Broker Centre.
Toll-free fax: 1.866.399.8080