# What documentation is required for mortgage approval in new construction?

> Thorough loan documentation is essential, providing a clear record of credit decision factors and supporting lender risk management [osfi-b20-baseline, Loan documentation].

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/what-documentation-is-required-for-mortgage-approval-in-new-construction

## Answer
Thorough loan documentation is essential, providing a clear record of credit decision factors and supporting lender risk management [osfi-b20-baseline, Loan documentation]. This enables independent audits by FRFIs (federally-regulated financial institutions) and OSFI (Office of the Superintendent of Financial Institutions).

## Institutional highlights
- Your lender needs to keep detailed records to show they followed the rules when approving your mortgage.
- You'll need to provide documents like proof of income, details about your debts, your down payment, the purchase agreement, and home insurance information.
- If you have any credit issues, be prepared to explain how you're managing them and why you can still afford the mortgage.
- If your mortgage is insured, the lender will keep a record confirming the insurance company's commitment.
- Your lender may ask for updated information about your finances or the property, especially if something changes during the construction process.

## Related guide
- https://ratellow.com/guides/new-construction-draws

## Sources
- 4.1.13 Land acquisition, development and construction exposures — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-2026-chapter-4-credit-risk-standardized-approach#4.1.13
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3