Posted by Kent Braaten on Wednesday, May 21st, 2025 9:17am.
Before you start browsing listings and booking home viewings, there’s one critical step every buyer should take—getting mortgage pre-approval. Not only does this help define your budget, but it also shows sellers you’re serious and financially ready.
Here’s what you need to gather to get mortgage approval:
If you are an employee:
Letter of Employment (dated within 60 days)
Most recent Paystub (dated within 30 days)
Most recent T4 (required if income includes hourly, bonuses, commissions, or overtime)
If you are self-employed (sole proprietor):
Notice of Assessment (NOA)
T1 General Tax Return
Statement of Business Activities (T2125)
Proof of Tax Payment (if any balance is owing)
If you own a corporation:
Notice of Assessment
T1 General Tax Return
2 Years of Financial Statements (prepared by an accountant)
90-Day Account History
Show the history of any bank accounts where your down payment will come from. Ensure your name and account number are visible.
Large Deposits
Be prepared to provide documentation explaining any large deposits. Lenders want to ensure funds are not borrowed. It’s best to avoid moving money between accounts unnecessarily.
Getting pre-approved gives you a major edge in a competitive real estate market. It allows you to shop with confidence and negotiate like a pro.
Pre-approval helps define your budget, improves your credibility with sellers, and speeds up the final mortgage process.
You might fall in love with a home outside your budget or risk losing it to someone who is already pre-approved.
Yes, you’ll need to show proof of where your down payment is coming from, including 90-day account histories.
Most pre-approvals are valid for 90 to 120 days. After that, you may need to update your documentation.