Chapter 12 - Application Analysis – Borrower Documents

Question 1

Why would a MTG agent need a T4?

Answer 1

Borrower has salaried or hourly employment income

Question 2

Why would a MTG agent need a T4A?

Answer 2

Borrower has commission income

Question 3

Why would a MTG agent need a job letter?

Answer 3

Borrower’s income or position is required (employed)

Question 4

Why would a MTG agent need a NOA?

Answer 4

To support income verification and/or confirm no outstanding income taxes

Question 5

Why would a MTG agent need an Agreement of Purchase and Sale?

Answer 5

Needed when a borrower is purchasing a property

Question 6

Why would a MTG agent need a gift letter?

Answer 6

If the borrower is receiving funds from a family member to make a downpayment

Question 7

Why would a MTG agent need a Property Assessment ?

Answer 7

Needed for switch/refinance. To support the value of the borrower’s house

Question 8

Why would a MTG agent need a property tax bill?

Answer 8

Needed for switch/refinance. To confirm taxes payable & if there are any outstanding taxes owing

Question 9

Why would a MTG agent need a Mortgage Statement?

Answer 9

For refinancing. Confirms outstanding balance on the mortgage

Question 10

Why would a MTG agent need a Status Certificate?

Answer 10

For financing on a condo unit

Question 11

Describe the information found in an MLS document

Answer 11

Details about the property, sale price & realtor

Question 12

What is a Certificate of Independent Legal Advice and under what circumstances would it be required?

Answer 12

This document proves that an individual has been consulted by a lawyer. It is required when the proceeds of a refinance are being provided to a third party and not the Borrower OR if the loan is a reverse mortgage.

Question 13

Under what circumstances must a mortgage agent complete a creditor insurance application?

Answer 13

This must be completed AT EVERY TRANSACTION. If the Borrower(s) want the insurance the full application must be completed, if they do not they must complete the waiver section.

Question 14

What information must be in a job letter for it to be acceptable to a lender?

Answer 14

• company letterhead
• company address
• contact information
• list the Borrower’s position, income, how it is paid (i.e. salary or hourly), the frequency of payment (i.e. weekly)
• if the person is full or part-time and/or on probation, the start date
• the writer’s information and contact information