BUYERS GUIDE
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Preparing to Buy
Preparing to Buy
Is Your Financial Situation Ready?
Have you experienced income growth or improved financial stability? Are you prepared for the upfront costs of buying in Ontario, including:
- Down payment
- Closing costs
- Land Transfer Tax (and Toronto Land Transfer Tax, if applicable)
Before starting your search, it’s important to speak with a lender or mortgage broker to determine what you can afford.
Homeownership remains a strong long-term investment, offering the opportunity to build equity and benefit from property appreciation over time.
Get Prepared Before You Start
Build Your Financial File
Lenders in Ontario will require a full financial snapshot. Be prepared with:
- Employment letter and recent pay stubs
- Last 2 years of tax returns and Notices of Assessment (CRA)
- Bank statements
- Investment accounts (RRSPs, TFSAs, etc.)
- List of debts (credit cards, loans, lines of credit)
- Information on rental or investment properties (if applicable)
Check Your Credit Score
Your credit score affects your mortgage approval and interest rate.
Canadian lenders typically use reports from:
- Equifax Canada
- TransUnion Canada
Review your credit early so you can address any issues before applying.
Be Careful With Your Finances
During the home-buying process:
- Avoid changing jobs
- Avoid large purchases (cars, furniture on credit, etc.)
- Don’t take on new debt
Lenders value consistency and financial stability.