FINANCESGet your finances in order and save for your deposit. You will need 5% of the purchase price for your down payment. You should also begin saving money for the closing costs associated with purchasing a home; these include lawyer fees, inspection fees, etc.
In addition to saving for a deposit, you should pay back as much of your debt as possible before getting a mortgage. This will increase your likelihood of getting approved.
MORTGAGE PRE-APPROVAL
If you’ve ever fallen in love with something only to realize that its way out of your budget, you’ll understand why a Pre-approval is so important. You will need to provide your mortgage specialist with documents/information so they can complete your application.
Your lender will analyze your income, assets and expenses then produce a preapproval letter that certifies you have the resources to buy a home up to a particular price point. At this point it is important to avoid big purchases or loans as that will affect your pre-approval. For example, don’t charge large purchases to a credit card, don’t get a new vehicle, etc.
It is important to remember that you do not need to spend the total amount that you are pre-approved for. If you prefer to have a lower payment each month, it is totally fine to only spend a portion of your budget!
If you need a referral to an experienced mortgage broker, let us know! We have a large database of qualified professionals to help you every step of the way.
DOCUMENTS TO HAVE READY FOR YOUR MORTGAGE BROKER
(NOT ALL MAY APPLY)
90 Day Statements for all applicable accounts (Savings, Chequing, RSP, TFSA, Etc.)
IF YOU ARE EMPLOYED:
T4 Slips
Letter of Employment
Recent Pay Stub
Previous Year-End Pay Stub
SELF-EMPLOYED
Notice of Assessment
Past 2 Years - T1S
2 Years Financial Statements
NOTE: Your Mortgage Broker may ask for additional documents