Step 1: Check Your Credit Score
Your credit score is one of the first things lenders review.
- Good to Excellent (680+): Best chance of securing low rates.
- Fair (600–679): You may still qualify but with fewer lender options.
- Poor (<600): You’ll likely need to improve your score before applying.
👉 Tip: Pay bills on time, lower credit balances, and avoid new debt before applying.
Step 2: Calculate Your Debt-to-Income Ratio (DTI)
Lenders compare your monthly debt payments to your income.
- Aim for a DTI under 40% (including your future mortgage).
- Example: If you make $6,000 per month, keep total debts under $2,400.
👉 Tip: Pay down loans or credit cards before applying to lower your DTI.
Step 3: Save for a Down Payment
The bigger your down payment, the easier it is to qualify.
- Minimum in Canada:
- 5% for homes under $500,000
- 10% for the portion between $500,000–$1M
- Homes over $1M require 20% down.
👉 Tip: First-time buyers may qualify for government incentives or RRSP Home Buyers’ Plan withdrawals.
Step 4: Gather Your Documents
Being organized speeds up the process. Most lenders will ask for:
- Proof of income (pay stubs, T4s, tax returns if self-employed)
- Employment verification
- Bank statements (showing savings for your down payment)
- List of debts and assets
👉 Tip: Having this ready can cut days off your approval timeline.
Step 5: Get Pre-Approved
A mortgage pre-approval tells you how much you can borrow and locks in an interest rate for 90–120 days.
- Helps you shop within your budget.
- Shows sellers you’re serious.
- Makes closing smoother once you find a home.
Step 6: Choose the Right Mortgage Product
Not all mortgages are equal. As part of qualifying, you’ll want to decide on:
- Fixed vs. Variable rate mortgages
- Term length (1–5 years, typically)
- Amortization period (often 25 years, sometimes longer)
👉 Tip: A mortgage broker like LendPro can shop multiple lenders on your behalf to find the best fit.
Step 7: Final Approval & Closing
Once you’ve found your home and made an offer, your lender will:
- Review your full application
- Confirm the property details with an appraisal
- Issue your mortgage commitment
👉 Tip: Avoid taking on new debt (car loans, credit cards) during this stage — it could affect your approval.
Ready to Qualify?
Qualifying for a mortgage comes down to preparation: strong credit, manageable debt, steady income, and a solid down payment. At LendPro, we’ll walk you through every step, from pre-approval to closing day, so you can focus on finding the right home.
✅ Thinking about applying soon?
Contact LendPro today for a personalized assessment and a step-by-step plan to get you qualified.
