Step 1: Figure Out Your Budget
Before you do anything else, get clear on what you can comfortably pay each month. That number needs to cover:
Your mortgage payment.
Property taxes and condo fees, if you're buying into a condo.
Utilities, maintenance, and the inevitable repairs that come with owning a place.
This is your real budget — not what a calculator says you qualify for, but what you can actually live with.
Step 2: Get Pre-Approved
You'll share information about yourself and anyone else going on the mortgage with you. Everything stays confidential. You'll review and sign a Mortgage Disclosure and Consent document, then your broker pulls your credit and looks at your overall situation.
Next comes document collection. Your broker will figure out your maximum purchase price and minimum down payment based on what you provide. Once they've reviewed your documents, you can lock in a rate hold — so if rates jump while you're house hunting, you're protected.
Step 3: Gather Your Documents
What you need depends on how you earn.
If you're salaried or hourly, bring your most recent pay stub, a letter of employment on company letterhead (with your name, position, how long you've been there, guaranteed hours or salary, and contact info so the lender can verify), and your last two years of Notice of Assessments, T1 Generals, and T4 slips if you earn overtime, commission, or bonus income.
If you're self-employed, you'll need your last two years of Notice of Assessments and T1 Generals, confirmation you don't owe the CRA anything, your last two years of Statement of Business Activities if you're a sole proprietor, or articles of incorporation and two years of company financials if you run a corporation or partnership.
For your down payment and closing costs, anti-money-laundering rules mean the lender has to review 90 days of bank or investment account history. Any big or frequent deposits and transfers need to be explained. Online statements work; smartphone screenshots don't.
If you're getting a gift, you'll need a gift letter, proof the funds landed in your account, and documentation of any line of credit or proceeds from selling an existing home.
Plan to have 1% to 1.5% of the purchase price on top of your down payment for closing costs — things like the home inspection, property tax adjustments, appraisal fees, title insurance, moving expenses, utility hookups, and home fire insurance.
Step 4: Find a Realtor and Start Looking
If you don't have a realtor yet, ask your broker — they can connect you with someone solid.
Stick to homes within your pre-approved price. When you find the one, make sure your realtor writes the offer conditional on getting satisfactory financing. Give yourself 7 to 10 days. It's also smart to include a condition for a satisfactory home inspection.
Step 5: Get Your Mortgage Approved
Once your offer's accepted, let your broker know right away so they can get to work.
You'll need to hand over an updated pay stub, job letter, and down payment account histories if the ones on file are more than 30 days old, your completed and signed Offer to Purchase, the MLS listing (or an old listing or appraisal if it's a private sale), your lawyer's information (firm name, solicitor, address, phone, fax), and a void cheque for setting up mortgage payments.
Step 6: Review and Sign Your Commitment
After your deal is approved, the lender sends a mortgage commitment to your broker. Your broker will walk you through it and flag any remaining requirements.
You'll submit those final items to get your full approval.
Step 7: Appraisal and Inspection
If the lender requires an appraisal, your broker will order and schedule it.
This is also when you should book a certified home inspector. The inspection tells you if the home has any major defects or big repairs coming down the line. The inspector checks the structure and mechanical systems, identifies problems, estimates repair costs, and gives you a report.
Step 8: Remove Your Conditions
Once the lender confirms they have everything and your deal is approved, contact your realtor to remove the financing condition. If the inspection came back clean, you can remove that condition too.
Don't lift conditions until the lender has reviewed and accepted any changes to your purchase contract — those changes could affect your financing.
Step 9: Meet with Your Lawyer
After all mortgage conditions are cleared, the lender sends your file to your lawyer. Your lawyer will call you in a week or two before possession to review the legal side of things.
You'll sign documents for the mortgage, the property, ownership, and the purchase terms. Bring a certified cheque or bank draft to cover closing costs and any other outstanding amounts.
One thing to watch: don't sign up for duplicate mortgage life or disability insurance at the lawyer's office if you've already arranged coverage.
Step 10: Possession Day
Once the money moves between your lawyer and the seller's lawyer, the home is officially yours.
Your realtor will meet you there for a final walk-through to make sure everything's in order, then hand over the keys. Congratulations — you're home.
