What Income Documents Are Needed for A Mortgage Pre-Approval in Canada

Obtaining a mortgage pre-approval is an important step in the homebuying process in Canada, as it provides an estimate of the mortgage amount you may qualify for and demonstrates your financial readiness to potential sellers. Preparing your income documents is essential for a smooth and efficient pre-approval process. In this blog, we’ll guide you through the necessary steps to gather and organize your income documents when seeking mortgage pre-approval in Canada.

  1. Understand Lender Requirements

Lenders have specific requirements when it comes to verifying your income for mortgage pre-approval. Familiarize yourself with these guidelines, which may vary depending on your employment type and financial situation. This will help you determine which documents you need to provide to meet your lender’s expectations.

  1. Gather Income Documents Based on Employment Type

The type of income documents you need to provide will depend on your employment status. Here are the most common scenarios:

  • Salaried Employees: If you have a salaried job, lenders typically require your most recent pay stubs, a job letter confirming your employment status and salary, and T4 slips for the past two years.
  • Hourly or Commission-Based Employees: For hourly or commission-based workers, lenders may require your most recent pay stubs, a job letter, T4 slips for the past two years, and Notice of Assessment (NOA) documents for the past two years.
  • Self-Employed Individuals: If you’re self-employed, you’ll need to provide more extensive documentation, such as NOA documents for the past two to three years, financial statements for your business, and proof of your business’s registration or incorporation.
  1. Review and Organize Your Documents

Go through your income documents and ensure that they’re accurate and up-to-date. Organize them in a way that makes it easy for your lender to review and verify your income. For example, you can group them by document type, such as pay stubs, job letters, and T4 slips, or by year. This will help streamline the pre-approval process and minimize potential delays. Make sure each document includes all the pertinent information your mortgage broker is asking for.

  1. Be Prepared to Explain Income Variations

You may have to explain significant variations in your income over the past two years. Be prepared to provide a written explanation for any irregularities or fluctuations, such as a change in job, a period of unemployment, or an increase in commission-based earnings.

  1. Digitize Your Documents

Scan your income documents and save them as digital files. This not only ensures you have a backup of your records but also allows for easier sharing with your mortgage broker. Use clear file names and organize the digital files in a way that mirrors the physical organization of your documents.

  1. Update Your Documents as Needed

If you’re still in the process of searching for a home, it’s important to keep your income documents updated throughout the homebuying process. Mortgage pre-approvals are valid for 30 days, and your lender may request updated documentation if you have an accepted offer and your documents are more than 30 days old.


Preparing your income documents for mortgage pre-approval is a crucial step in the homebuying process in Canada. By understanding lender requirements, gathering the necessary documents based on your employment type, and organizing them effectively, you’ll be well on your way to securing pre-approval and ultimately achieving your homeownership dreams.

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