Conditions Precedent to Advance
If you have received an MCAP mortgage commitment and are looking for information about how to fulfill the conditions listed in Special Conditions Precedent to Advance, this section will provide you with the assistance required.
Mandatory Documentation for all mortgages includes the signed commitment (with all schedules) along with the completed Pre-Authorized Debit (PAD) Agreement, within 5-business days of the commitment date.
Please note that it is essential you meet all required conditions as listed in your commitment in order for MCAP to ensure your mortgage closes as scheduled.
You may receive compensation via salary, an hourly wage, commission or pension. Alternatively, you may be self-employed wherein you are drawing income from a trade or business. Regardless of the way in which you are compensated, you will be asked to provide verification of your employment and income.
Down Payment Documentation
Where is Your Down Payment Coming From?
Savings or Investments
Your down payment is coming from a source(s) such as savings and investments, GIC deposits, RRSP, or Canada Savings Bonds. We will require confirmation of non-borrowed funds showing accumulation of 3 months via bank statements.
Gift from Immediate Family Member
You have received a gift from an immediate family member. We will accept a gifted down payment as long as the gift is from your parent, grandparent, child, sibling, legal guardian or legal dependant and we have confirmation that the funds have been deposited into your bank account. Spousal gifts may be accepted provided that the funds are confirmed as being from the spouse’s own resources and are not borrowed. If your deal was approved on the basis that you were providing minimal income confirmation (Stated Income Program), a gifted down payment is not allowed. If you are purchasing this property as an investment property and will not be occupying it yourself, a gifted down payment is not acceptable.
Proceeds from the Sale of an Existing Property
You are selling or have sold a property and are using the money received from that sale towards the purchase of this property. Your solicitor must provide a statement confirming the net proceeds that you are entitled to.
Property Valuation Documentation
How Does MCAP Know How Much your Property is Worth?
The value of your property is based on its current state. Depending on this amount, MCAP will lend you funds relevant to that specific value. In order to be sure we have a fair and accurate evaluation, we usually get a third party appraiser to conduct an appraisal. This means that someone may be calling you to arrange a time to view the property. Please try to accommodate these requests, as they will only speed up the process of funding your mortgage.