Everything You Should Know Before Buying a Home

Tanya Toye • August 27, 2025

Thinking About Buying a Home? Here’s What to Know Before You Start


Whether you're buying your very first home or preparing for your next move, the process can feel overwhelming—especially with so many unknowns. But it doesn’t have to be. With the right guidance and preparation, you can approach your home purchase with clarity and confidence.


This article will walk you through a high-level overview of what lenders look for and what you’ll need to consider in the early stages of buying a home. Once you’re ready to move forward with a pre-approval, we’ll dive into the details together.


1. Are You Credit-Ready?

One of the first things a lender will evaluate is your credit history. Your credit profile helps determine your risk level—and whether you're likely to repay your mortgage as agreed.


To be considered “established,” you’ll need:

  • At least two active credit accounts (like credit cards, loans, or lines of credit)
  • Each with a minimum limit of $2,500
  • Reporting for at least two years


Just as important: your repayment history. Make all your payments on time, every time. A missed payment won’t usually impact your credit unless you’re 30 days or more past due—but even one slip can lower your score.


2. Is Your Income Reliable?

Lenders are trusting you with hundreds of thousands of dollars, so they want to be confident that your income is stable enough to support regular mortgage payments.

  • Salaried employees in permanent positions generally have the easiest time qualifying.
  • If you’re self-employed, or your income includes commission, overtime, or bonuses, expect to provide at least two years’ worth of income documentation.


The more predictable your income, the easier it is to qualify.


3. What’s Your Down Payment Plan?

Every mortgage requires some amount of money upfront. In Canada, the minimum down payment is:

  • 5% on the first $500,000 of the purchase price
  • 10% on the portion above $500,000
  • 20% for homes over $1 million


You’ll also need to show proof of at least 1.5% of the purchase price for closing costs (think legal fees, appraisals, and taxes).


The best source of a down payment is your own savings, supported by a 90-day history in your bank account. But gifted funds from immediate family and proceeds from a property sale are also acceptable.


4. How Much Can You Actually Afford?

There’s a big difference between what you feel you can afford and what you can prove you can afford. Lenders base your approval on verifiable documentation—not assumptions.


Your approval amount depends on a variety of factors, including:

  • Income and employment history
  • Existing debts
  • Credit score
  • Down payment amount
  • Property taxes and heating costs for the home


All of these factors are used to calculate your debt service ratios—a key indicator of whether your mortgage is affordable.


Start Early, Plan Smart


Even if you’re months (or more) away from buying, the best time to start planning is now. When you work with an independent mortgage professional, you get access to expert advice at no cost to you.


We can:

  • Review your credit profile
  • Help you understand how lenders view your income
  • Guide your down payment planning
  • Determine how much you can qualify to borrow
  • Build a roadmap if your finances need some fine-tuning


If you're ready to start mapping out your home buying plan or want to know where you stand today, let’s talk. It would be a pleasure to help you get mortgage-ready.


Tanya Toye

Mortgage Broker

GET STARTED

Employment and Mortgage Qualification: What Lenders Look For

By Tanya Toye • September 30, 2026
When you apply for a mortgage, your employment history and status carry a lot of weight. Even if you feel secure in your job, lenders need proof that your income is reliable and will continue. To them, your employment status is one of the strongest indicators of whether you can make your mortgage payments long term. Here’s how lenders typically view different employment situations: Permanent Employment This is the gold standard. Once you’ve passed any probationary period and hold permanent status, lenders see you as a lower risk. It shows that your employer is committed to you, and your income is steady. Probationary Periods If you’re still on probation—usually 3 to 6 months, though sometimes longer—lenders may hesitate. That’s because your employer can end your contract without cause during this period. Once probation is over, you’re considered more secure. That said, context matters. If you’ve worked with the same company for years as a contractor and just transitioned into full-time employment, lenders may accept a letter from your employer confirming that probation is waived. Documentation is key here. Parental Leave Being on or about to take parental leave doesn’t mean you can’t qualify for a mortgage. As long as you have a letter from your employer guaranteeing your position and return-to-work date, lenders can use your regular salary—not your leave income—when assessing your application. Term Contracts This is one of the trickiest categories. Even highly skilled professionals with strong incomes can face challenges here. A term contract has a start and end date, which makes lenders question the stability of your future income. To use term-contract income, lenders generally want to see at least two years of history, or proof that your contract has already been renewed. The more evidence you can show of consistent employment, the stronger your case will be. The Bottom Line If you’re planning to apply for a mortgage, it’s important to understand how your employment status could affect your approval. Whether you’re starting a new job, coming back from leave, or working under contract, lenders want documentation that proves your income is reliable. 📞 If you’ve recently changed jobs or are planning a career shift, let’s connect. I can help you prepare your file so you qualify with confidence and avoid surprises in the approval process.

Homeowner Credit is Becoming Part of the Longer-Term Financial Conversation

By Tanya Toye • September 29, 2026
Credit has traditionally been viewed as something you use for a specific purpose: buying a home, financing a major purchase or covering an unexpected expense. But with higher living costs, slower economic conditions and less financial flexibility, credit is increasingly becoming part of a longer-term financial conversation. That doesn’t mean taking on debt indefinitely or relying on borrowing to solve every financial challenge. But it’s important to understand the tools available and the necessity of making thoughtful decisions about when and how credit may fit into your broader financial plan. A Fresh Take on Credit In many ways, households are beginning to approach financial management with more of a business mindset. Businesses regularly evaluate cashflow, consider available sources of financing and balance immediate needs against longer-term objectives. They don’t necessarily borrow simply because credit is available. They consider why they need the funds, what the financing will cost and how it fits into their overall strategy. The same thinking can be useful for homeowners. When household budgets are under pressure, the question isn’t always, “How can I avoid using credit?” It may also be, “What options are available and do any of them make sense for my situation?” That could mean refinancing, consolidating certain debts, using a home equity line of credit or considering another form of financing. The appropriate option depends on your circumstances, objectives and ability to manage the associated costs.  Home Equity May Be Part of the Conversation For homeowners who have built significant equity, your home can represent an important financial resource. That’s one reason I’m seeing more openness to conversations about reverse mortgages. A reverse mortgage isn’t appropriate for everyone, and it shouldn’t be viewed as a simple solution to financial challenges. For the right homeowner and in the right circumstances, however, it may provide access to home equity and improve cashflow without requiring you to sell or move. The important thing is understanding how the option works, what it costs and how it affects your broader financial picture. Credit Requires Discipline Regardless of the type of credit being considered, having a plan is essential. Before taking on additional borrowing costs, it’s worthwhile understanding why you need the funds, how much is appropriate, the overall cost of borrowing and how your longer-term repayment or exit strategy looks. Credit can provide flexibility when financial circumstances are changing. But its value comes from using it intentionally and responsibly – as one part of a larger plan designed to support financial stability and resilience. The goal isn’t simply to borrow more – it’s to understand your options and make credit work within a financial strategy that makes sense for you. Let’s talk about how you may be able to leverage credit to your advantage. Contact Tanya: 604-788-8693 | tanya@tanyatoye.ca