I am planning to apply for mortgage based on my LTD payment. My question is that does bank contact the insurance company for any verifications? Can it raise any red flags? Please advise
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Talk to your claims manager. My LTD company sent me a letter to show the bank that said I was approved to age 65. They sent it to me with an email not for the bank saying that the letter only applied as long as I still qualify under the policy.
I also had to provide the lender with bank statements showing receipt of the LTD and my CPPD for the last three months. And a copy of my CPPD T4A tax slip from the year before.
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Just got a new mortgage in 2021 and did the same process. Was painless, I was far more worried about the process than I needed to be.
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They generally will not contact the LTD insurer but they will ask you to get the LTD insurer to do a letter confirming your benefit amount and fact that benefits are approved.
David Brannen
Disability Lawyer with Resolute Legal
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