Take these steps to ensure you're truly ready to pay for a mortgage
Many people aspire to be homeowners, but since it’ll likely be the most significant financial decision you’ll ever make, it’ll take careful consideration. You need to ensure you take the proper steps to put yourself in a good position to buy.
Have steady income
Unless you have a ton of cash on hand, you’ll need a mortgage to buy a home.
Whether you’re a full-time employee or freelance, how much of a mortgage you’ll qualify for depends on your income. Generally, the more you make, the more you’ll be eligible for.
Generally, lenders want to see that you’ve had a job with the same employer for at least 12 months. This is important to lenders because they may not want to take a risk on someone that just got a new job and has a chance of not passing the probation period. Having steady employment gives lenders peace of mind.
In the case of freelancers, small-business owners or self-employed individuals, lenders want to see consistent income. They would qualify you based on the income listed on your CRA notice of assessments from the last two to three years.