Special shout out to Cheryl Jessamine for her incredible insight in helping put together this list!
House hunting is exciting. Scrolling listings, picturing furniture placement, mentally claiming the good closet. But before you fall in love with quartz countertops and south-facing windows, there is a much less glamorous step that matters far more.
Preparation.
Buying a home without your paperwork in order is like showing up to the airport without a passport. You may look ready, but you are not going anywhere. Here is how to prep properly so when the right home appears, you can move quickly and confidently.
Gather Your Paperwork (Yes, There Will Be a Lot)
Buying a home involves paperwork. Then more paperwork. Then paperwork about the paperwork.
Start early by gathering:
- Identification documents
- Financial statements
- Employment and income records
- Banking and credit information
Having documents ready upfront prevents delays and reduces stress once you are ready to make an offer.
Make Sure Your Income Tax Is Up to Date
Lenders love consistency and clarity. Unfiled or overdue income taxes raise questions they do not enjoy asking.
Before shopping:
- Ensure your personal income tax filings are current
- Have Notices of Assessment available if requested
- Resolve any outstanding tax issues
Clean tax records help support your income history and borrowing strength.
Take Care of Any Outstanding Arrears
Unpaid debts do not quietly disappear during a home purchase. They come up. Loudly.
This includes:
- Missed payments
- Outstanding collections
- Overdue credit accounts
Addressing arrears in advance protects your credit profile and keeps your approval process smooth.
Your Down Payment Needs a Paper Trail
In Canada, down payment funds must be traceable.
Lenders typically require:
- A minimum of 90 days of provable savings
- Clear documentation showing where funds came from
- Supporting paperwork for gifts or transfers if applicable
If the money just appeared last week, expect questions. Planning ahead avoids awkward explanations later.
Prepare Paperwork That Supports Your Income
Income verification is a cornerstone of mortgage approval.
Depending on your situation, this may include:
- Recent pay stubs
- T4s or T4As
- Proof of self-employed income
- Contracts or recurring income documentation
Clear, consistent income records help lenders determine affordability accurately.
Request a Letter From Your Employer (If Applicable)
Some lenders may ask for confirmation directly from your employer.
An employer letter typically confirms:
- Employment status
- Length of employment
- Position and income
This simple document can strengthen your application and prevent delays.
Ensure You Have a Canadian Bank Account
This one is essential.
To purchase a home in Canada, you will need:
- A Canadian bank account
- Accessible records of deposits and balances
- Verified sources for funds used in the purchase
This allows lenders and legal professionals to verify transactions properly.
Why Preparation Makes You a Stronger Buyer
Well-prepared buyers:
- Get pre-approved faster
- Are taken more seriously by sellers
- Can act quickly when the right home appears
Preparation turns you from a “just looking” buyer into a confident, competitive one.
Working with an experienced realtor like Marni Fedeyko ensures you understand what to prepare, when to prepare it, and how to avoid common surprises before you ever book a showing.
Final Thoughts: Prep First, Shop Second
Buying a home is not just about finding the right place. It is about being ready when you do.
When your paperwork is organized, your finances are clear, and your preparation is complete, the buying process becomes smoother, faster, and far less stressful.
Do the prep work first.
Then shop with confidence, not crossed fingers. 🏡✨
