Getting a mortgage is actually pretty simple—if you have the right paperwork. That’s the big secret from the admin team at LendCity Mortgages, who process investment property mortgages every day.
The catch? Everything depends on having proper documentation. Not just any documents, but the right ones in the right format. Here’s what you actually need to know.
Why Your Car Payment Matters More Than You Think
Before we get into paperwork, here’s something the mortgage admin team wishes they’d known earlier: your car payment directly affects how much house you can buy.
It’s not just about the monthly payment. That $600 truck payment might be the difference between qualifying for your dream home and getting denied. Lenders look at all your debts when deciding how much to lend you.
Here’s the reality check: a cheaper vehicle now means a bigger mortgage later. You can always upgrade your car after you own a home. But if you prioritize the fancy vehicle first, you might price yourself out of homeownership.
Book Your Strategy CallEmployment Letters: Why Your Boss Can’t Just Write a Note
This surprises people, but your boss can’t just scribble an employment letter on company paper. Lenders won’t accept it, even if it’s totally legitimate.
What Makes an Employment Letter Acceptable
Your employment letter needs these specific things:
- Official company letterhead with the logo
- A signature from HR or your supervisor
- PDF format only (not Word—those can be edited)
- Your job title and start date
- Whether you’re salary or hourly
- Your wage or salary amount
- If hourly, your minimum guaranteed hours
- Your employment type (full-time, part-time, contract, permanent)
Why so picky? Lenders don’t know you. They don’t know your employer. They need to verify everything because unfortunately, mortgage fraud exists. They’re protecting themselves and you.
The 30-Day Rule
Most lenders want employment letters dated within the last 30 days. Some allow 60 days, but that varies.
If your mortgage broker asks for an updated letter even though you just sent one, don’t take it personally. The lender requires it within their timeframe. The admin team isn’t being difficult—they’re following lender rules.
Pay Stubs: More Than Just Proof You Get Paid
Your pay stubs tell a story, and lenders read between the lines.
They calculate what your year-to-date earnings should be based on your stated hours and wage. If the numbers don’t match, they’ll ask why.
Usually there’s a simple explanation—unpaid vacation, a leave of absence, reduced hours for a period. That’s fine. They just need to know.
Photo Quality Actually Matters
Don’t send blurry photos or screenshots that cut off part of the document. Lenders need to see everything clearly. If they can’t read it, they’ll reject it and ask for a new one.
Your pay stub must show your name, your employer’s name, year-to-date earnings, and the pay period. All of it needs to be readable.
What ID You Can (and Can’t) Use
You need two pieces of government-issued ID, front and back.
What Works
- Driver’s license
- Passport
- SIN card
- Birth certificate
- Even hunting licenses or firearms licenses count
What Doesn’t Work
Health cards are a hard no. Not because mortgage brokers are being difficult, but because they legally cannot keep health card information. If you send one, they have to delete it immediately.
Work IDs and school IDs don’t count either, even if they’re from government institutions.
Investment Properties: Yes, You Need All That Paperwork
If you own rental properties, get ready for more documentation. But there’s a good reason for it.
What You Need for Each Rental
- Current lease agreements (or tenant acknowledgment forms if month-to-month)
- Your T1 tax returns showing rental income
- Mortgage statements for each property
- Property tax bills—the actual city-issued ones, not just mortgage statements
Why so much? Because without proper documentation, your mortgage broker has to guess at your numbers. That means they might tell you that you qualify for more than you actually do, setting you up for disappointment later.
Or worse, they might miss income sources that could actually improve your borrowing power.
Property Management Fees Matter
If you use a property manager, say so upfront. Those fees (usually around $200 per property monthly) reduce your rental income, which affects your qualification.
Finding out about management fees after preliminary approval can tank your application when the lender recalculates your numbers.
Why Lenders Want to See Your Assets
You’re borrowing money, not bragging about your wealth. So why do lenders care about your assets?
Four Good Reasons
First, they want to know you have a safety net. If something goes wrong, can you handle it?
Second, you might be able to use assets strategically. Selling that truck or paying off a credit card with savings could improve your ratios enough to qualify.
Third, you need money for closing costs. Land transfer taxes alone can be $6,000 or more. Lenders want proof you can cover these expenses.
Fourth, special programs exist for people with substantial assets but lower reported income. Think retirees with modest pensions but significant investments. Without seeing your assets, your broker might miss these options.
Preparing for an Appraisal
If your refinance needs an appraisal, you can actually influence the outcome.
Basic Prep
- Clean your house—appraisers take photos throughout
- Cut the grass and tidy the exterior
- Organize the garage (yes, they photograph it)
- Secure pets so they don’t interfere
The Conversation That Matters
Be home during the appraisal if possible. Tell the appraiser about improvements they can’t see:
New windows and doors that cost $20,000. Granite countertops instead of laminate. Hardwood floors you just installed. A new HVAC system. Roof replacement.
These details might not be obvious, but they significantly affect your home’s value. If the appraiser seems unsure about hitting your needed value, this conversation can make the difference.
Understanding Who’s Really Asking
When your mortgage broker requests another document, they’re usually not the ones who decided you need it. The lender did.
Mortgage brokers work between you and the lender. They’re advocating for you while meeting lender requirements. When they ask for something, it’s because the lender demands it.
Post-COVID, lenders got much stricter about everything. What might seem excessive is now standard across the industry.
The admin team isn’t trying to make your life difficult. They’re trying to get your mortgage approved. The more complete your documentation upfront, the faster and smoother the process.
The Bottom Line
Mortgages really are simpler than most people expect. The process itself isn’t complicated.
What makes it seem complex is the documentation requirements. But those requirements exist for legitimate reasons—protecting you, protecting the lender, and making sure everything is verified and accurate.
Do yourself a favor: provide complete, clear documentation from the start. Answer questions fully. Disclose everything upfront, even if you think it might hurt your application.
Your mortgage broker can work with almost any situation. What they can’t work with is surprises that pop up during underwriting because information was missing earlier.
The admin team processing your application is on your side. They want to see you succeed. Give them what they need, and they’ll help get you across the finish line.
Book Your Strategy CallFrequently Asked Questions
Lenders require employment letters on official company letterhead in PDF format with an HR or supervisor signature. Handwritten letters or Word documents can be edited, which raises fraud concerns. The letter must be verifiable and include your job title, start date, salary or wage, hours worked, and employment type.
Most lenders require employment letters dated within the last 30 days, though some accept up to 60 days. If your mortgage broker asks for an updated letter even though you recently provided one, it’s because the lender requires documentation within their specific timeframe.
Mortgage brokers legally cannot retain health card information as they are not medical facilities. This is a strict privacy law requirement. If you submit a health card, it must be deleted immediately. Use driver’s licenses, passports, SIN cards, or birth certificates instead.
Yes. Lenders want to see your assets for several reasons: to verify you have a safety net, to identify opportunities to strategically pay off debts that improve your qualification, to confirm you have funds for closing costs, and to determine if you qualify for special high-net-worth programs.
Your car payment directly reduces how much you can borrow for a home. Lenders look at all your debts when calculating your qualification. A large car payment can be the difference between qualifying for your desired mortgage amount and getting denied. Choosing a less expensive vehicle can improve your borrowing power.
For each rental property, you need current lease agreements or tenant acknowledgment forms, T1 tax returns showing rental income, mortgage statements, and city-issued property tax bills. If you use a property manager, disclose those fees upfront as they reduce your net rental income and affect qualification.
Clean your house since appraisers photograph throughout, maintain your exterior and cut grass, organize your garage, and secure pets. Most importantly, be home to point out valuable improvements the appraiser might not seeu2014like new windows, updated HVAC systems, or premium materials used in renovations.
Lenders come from a completely blind perspective regarding your file. They don’t know you or your employer personally, so everything must be documented and verifiable. This protects against fraud and ensures accurate qualification. Post-COVID, documentation requirements became even stricter across the industry.
