Buying a home is an exciting milestone, but the process requires thorough preparation, especially when it comes to paperwork. Having the right documents ready can streamline your home-buying journey and avoid delays. Whether you’re purchasing your first home or your next investment, here’s a guide to the key documents you’ll need.
1. Proof of Identity
To verify your identity, you’ll need government-issued identification. These documents are essential for securing a mortgage and completing the closing process.
Examples:
- Driver’s license
- Passport
- Permanent resident card (if applicable)
2. Mortgage Pre-Approval Letter
Before you start house hunting, obtaining a mortgage pre-approval is crucial. This document shows sellers that you’re a serious buyer and provides clarity on your budget.
What to Prepare:
- Proof of income (pay stubs, tax returns)
- Credit history and score
- Employment verification
- Bank statements
3. Proof of Income
Lenders require proof of stable income to assess your ability to repay the loan. Be prepared to provide detailed income documentation.
Examples:
- Recent pay stubs (if employed)
- Tax returns and Notice of Assessment (self-employed or contract workers)
- Letter of employment outlining your salary and position
4. Bank Statements
You’ll need to show bank statements to prove you have the funds for the down payment, closing costs, and any other expenses associated with the purchase.
Tip: Ensure your statements are recent, usually covering the last 3–6 months.
5. Down Payment Proof
The lender will require evidence that your down payment is sourced legitimately.
What You’ll Need:
- Savings account statements
- RRSP withdrawal documents (if using a Home Buyers’ Plan)
- Gift letter (if receiving help from family)
6. Credit History
Your lender will request your credit report to assess your creditworthiness. This is often obtained directly by the financial institution during the pre-approval process.
Tip: Check your credit score beforehand to address any errors or issues.
7. Employment Verification Letter
This letter, issued by your employer, confirms your position, length of employment, and salary. It helps lenders assess the stability of your income.
8. Purchase Agreement
Once you’ve made an offer on a property, the signed purchase agreement becomes a key document. This contract outlines the terms of the sale, including price, conditions, and closing date.
9. Proof of Residency or Citizenship
Depending on your residency status, additional documentation may be required.
Examples:
- Permanent resident card
- Work permit or study permit (if applicable)
- Proof of citizenship
10. Additional Documents for Self-Employed Buyers
If you’re self-employed, lenders may require more extensive documentation to verify your income.
Examples:
- Financial statements for your business
- T1 General tax forms
- Contracts with clients or proof of consistent revenue
11. Property-Related Documents
Once you’ve chosen a home, certain property-specific documents are needed to finalize the purchase.
Examples:
- Home inspection report
- Appraisal report
- Title search
12. Closing Documents
During the final stages, you’ll need additional paperwork to complete the transaction.
Examples:
- Closing disclosure (outlines all costs and terms of the mortgage)
- Home insurance policy (proof of coverage is required by lenders)
- Transfer of title documents
Tips for Staying Organized
- Create a Checklist: Use this list to track the documents you’ve gathered and what’s still needed.
- Keep Digital Copies: Scan and store all documents securely for easy access.
- Work with Professionals: Your realtor, mortgage broker, and lawyer can guide you through the process and ensure you have everything ready.
Preparing the necessary documents ahead of time can make the home-buying process smoother and less stressful. With the right paperwork in hand, you’ll be ready to navigate each step with confidence.
If you’re planning to buy a home in Mississauga, Kitchener, or anywhere in the GTA, let’s connect. I can help you prepare for the process and find the perfect property for your needs
