When you're employed with a stable income, Canadian lenders typically require documents such as recent pay stubs, a letter of employment verifying your position and salary, and your most recent T4 tax slip. These documents help lenders assess your ability to make mortgage payments and determine your eligibility for various loan programs.

As a self-employed individual with a proven track record of 2 years or longer, lenders will typically request your personal tax returns for the past two years along with your business financial statements. These documents help demonstrate your income stability and business viability, which are crucial factors in the mortgage approval process.

If you're self-employed for less than two years, lenders may request additional documentation to assess your income stability. This may include business plans, contracts, and projections for your business. They may also ask for your previous work experience to understand if you're operating in the same field/industry. While it can be more challenging to qualify, we'll work with you to explore suitable options for your unique situation.

For individuals earning income through commissioned sales, lenders typically require a history of your commission income for the past two years. This includes your T4As, pay stubs, and personal tax returns. Understanding your commission income history helps lenders assess your earning potential and qualify you for a mortgage that aligns with your income fluctuations.

Understanding your budget is crucial in determining the amount you can borrow. Lenders consider factors such as your income, expenses, credit score, and down payment to calculate a maximum mortgage amount tailored to your financial situation.

Fixed-rate mortgages offer a constant interest rate over the term, providing predictable monthly payments. Variable-rate mortgages, on the other hand, have rates that can fluctuate with market conditions, potentially affecting your monthly payments. It's best to have a conversation to weight the pros and cons of each option.

Improving your credit score involves paying bills on time, reducing outstanding debts, and maintaining a healthy credit utilization ratio (under 30%). A higher credit score can lead to more favorable mortgage rates and terms.

The minimum down payment required to purchase a home in Canada is typically 5% of the property's purchase price. For example, if you're buying a home for $500,000, the minimum down payment would be $25,000. However, putting down a larger down payment can lead to benefits such as reduced mortgage insurance costs and lower monthly payments. If you can afford to put down 20% or more, you can avoid paying for mortgage default insurance altogether. As such, it's essential to consider your financial situation and weigh the advantages of a larger down payment against other financial goals before making a decision.

Yes, getting pre-qualified provides a clear budget and strengthens your offer's credibility. Pre-qualification allows you to confidently shop for homes within your budget and demonstrates your commitment to sellers.