🪪How Your ID Can Create Problems with Your Mortgage Closing🚧

 

It’s only natural that a mortgage lender will want to see your ID. After all, they are lending you several hundred thousand dollars, if not more. For the most part, providing ID is just a formality. However, there are times when something as simple as ID can create problems with your mortgage closing if not addressed early in the process. It may be something that you never would have thought of, or something that you didn’t think would be an issue. By having a better understanding of general requirements, as well as where the potential issues could arise, you will be prepared for when you sign at your lawyer’s office before closing.

 

ID Requirements

You’ll be required to provide two pieces of valid ID, one primary and one secondary. Many think that both pieces of ID are required to have your photo. However, only your primary ID needs to contain your photo. This is not a requirement for the secondary ID.  

Here are some examples of both primary and secondary ID:

 

Primary ID

Driver’s license

Passport

Canadian citizenship card

Canadian Permanent residence card

Government issued photo ID card

 

Note that there is no mention of a health card on the list.

This is because it’s not an acceptable form of ID. Unless an institution is involved in the provision of provincially funded healthcare, they are not permitted to collect or retain this information for identity verification purposes.

 

What if You Don’t Have Photo ID?

If you currently lack an acceptable photo ID, it’s crucial to obtain it prior to proceeding with your mortgage application.

Providing photo ID is not a problem for most, however, not everyone drives or travels, which could leave them with no photo ID outside of their Health Card. As this is not an acceptable form of ID, you would need to provide an alternative. Should you fall into this category, then you’ll need to apply for a government issued photo ID such as an Ontario Photo Card.

If your only photo ID is a health card, then it’s vital to ensure you have a suitable alternative in place prior to starting the mortgage approval process. Failing to do so could jeopardize the closing of your new mortgage, which is not a position you want to be in.

 

Secondary ID

SIN card

Canadian birth certificate

Credit card

 

Note that both sides of each piece of ID are required. The only exception is passports.

 

Has Your ID Been Updated?

It’s important that your ID matches your current address as entered on your application. If you are using a secondary address (such as your parents address) to receive all your mail, and have not updated your ID to reflect your current address, then this can create complications at closing.

Mortgage lenders will need to see confirmation that you’re living at the address indicated on the application. This can be as simple as providing a cell phone or utility bill with your name and current address. If there is nothing available to confirm your current address, then you’ll likely need to get this updated prior to closing.

 

Make Sure Your ID is Still Valid

Your ID will need to be valid at the time of closing.  If your driver’s license or passport is expiring in a week, then you’ll need to provide the updated document. We all get busy, and updating ID might not be at the top of our list. But if you have a mortgage closing, you’ll want to ensure everything is valid on your closing date.

 

Conclusion

Out of all the document requirements for mortgage approval, ID is usually the easiest to provide. It’s also one of the easiest to overlook. When you’re about to sign those important documents at your lawyer’s office, you want everything to go off without a hitch. That’s why I’ve outlined the specifics of acceptable ID, along with what to watch out for. So whether it’s renewing an expiring driver’s license or obtaining a government issued photo ID, taking proactive steps to meet these criteria ensures that you’ll be in a strong position when the time comes to close the deal on your new mortgage.