Step 1: Documents Lenders Require

You have already been provided (by email) with your own Document Checklist which is detailed to suit you and your circumstances. Please note these documents are curated to every client’s personal needs. That said, it is still a good thing to understand what could be expected of you, should you wish to become the expert of your own financing and prevent any worries in finding a document or two you may only see once a year. Especially if moving or if this is not an area of strength for you.

For us to start working together I ask that you provide these documents up front for a few reasons. First, the more information upfront returns the best options available to you on the market. Second, lenders today are looking for documents upfront as well, so I will have to provide the documents requested upfront to them right away.

In hopes you find it helpful, below is a chart outlining the types of documents that could be asked of you when it comes to how a lender is going to verify your income. This is subject to change as all lenders will require different documents but again I hope you find this helpful.

Historically, I have found financial jargon can deter people from learning more. That’s why I created this list of definitions for your reference. I hope it helps!

Company Financial Statements

This is a document prepared by your accountant. It will provide the summary of the company’s financial information and is basically a combination of 4 documents your accountant will refer to as the: balance sheet, income statement, cash flow statement and statement of changes in equity.

Letter of employment

This is a document you would obtain from your HR department. The letter of employment will need to be dated within the last 30 days, be on company letterhead and include your current employment information such as income earned, and position held. Just keep in mind that your employer is often asked for this information regularly so if you have an HR department or whomever does payroll this is who you would approach to get the letter of employment done for you unless your employer has converted to an electronic system. In that case maybe get some direction from a manager or college on how you can print off that letter from your employee portal.

Notice of Assessment (NOA)

This is the document that is mailed back to you once you have filed your taxes with Canada Revenue Agency (CRA) and will confirm if you had an amount you were required to pay or if you were getting a refund back from the Government.

Partnership Trade Name(s)/Articles of Incorporation.

These documents are obtained from the registry office and are provided to you when you are opening the company either as a partnership possibly with a trade name or have an incorporated company. They are updated with any changes to the company and are maintained regularly (generally on an annual basis) by yourself.

Pay stub.

This is a document you generally are provided with each time you are paid from your employer. The pay stub will also need to be dated within the last 30 days.

Statement of Business or Professional Activities

This is a schedule titled the ‘Statement of Business or Professional Activities’ and forms part of the T1 General. It will outline the expenses that are being declared as part of the business being operated.

T1 General.

This is the document that is used to file your personal taxes with Canada Revenue Agency (CRA). It can be lengthy in size and the actual form is often not provided to you. Should you have an accountant you work with request they forward you or provide a copy to me directly. A full copy of the document is preferred and may also be required. If you don’t have someone you work with the minimum pages you will want to provide me with is the first 5 pages. Those pages will outline your personal details on the first page and will note if you owe CRA or if CRA owes you money on the last page.

T4 slip.

This is a document you are provided with by your employer on an annual basis around February/March of every year confirming the total amount of income you were paid in the year prior. You would use this document when filing your personal income taxes to Canada Revenue Agency (CRA).