Applying for a loan, whether it be a mortgage, personal loan or a quick loan, can be a pretty straight forward procedure. As with most financial processes, you are required to have certain supporting documents to be sure you are worthy of the loan. The following are examples of required documents when asking for a loan. Keep in mind that the documents required may vary from lender to lender.
In order to confirm your details, lenders will require a number of documents in order to find the loan best suited to your personal needs.
- Personal Identification:
Most people do not even leave their house without identification, therefore this should be one of the easiest things to cross off your checklist. Be sure to bring more than not enough, it usually takes two forms of identification, considering one is a photo I.D. Types of identification that are generally accepted consist of:
- Drivers Licence
- Photo I.D. (Medicare)
- Birth certificate
- Citizens certificate
- Utility bill (less than 3 months old)
- Tax assessment notice (less than 12 months old)
- Your Income
Lenders like to see that you have employment. Lending to someone who does not have a job can mean risky business on the lenders part. In order to repay a loan you must have an income. Be ready to bring the following:
- Your most recent paystub with at least three months year to date income
- A paystub dated three months prior to your most recent paystub
- Proof of Address
Lenders want to be sure they have all the information they need in order to ensure that they will be repaid. The most acceptable forms of proof of address consist of:
- A utility bill dated within the last six months (hydro, phone, electricity)
- A bank statement issued within the last six months
- Notice of assessment from the current tax year
- Car, house or health insurance documents less than 12 months old
- Employment Permanency
Some lenders require documents which support employment permanency if you have been at your job for less than a year. Simply ask your employer for a letter in order to confirm your permanency.
- Proof of Immigration Status
If you are not a Canadian citizen you may be required to have documents supporting your immigration status. You must prove that you are legally entitled to reside and work in Canada.
- Open Chequing Account
In order to receive a direct deposit for your borrowed money you must have an up and running chequing account that you have access to. You must provide your banking information so that the loan can be deposited and so the payments can be withdrawn as per your decided repayment schedule.
As mentioned earlier, from one lender to another the required documents will vary along with the timeframe of those documents. While some lenders require documents to be as recent as the past six months, others will accept the past three months. You must prove that you are of age and have a working phone number in case you need to be contacted for any reason. Assuming you have the right documents, taking out a loan should be a fairly straightforward process.