Quick answer: Most lenders and mortgage brokers in Ontario ask first-time buyers for government-issued identification, proof of employment and income such as recent pay stubs, a T4 or, for self-employed applicants, Notices of Assessment for the past two years, recent bank and investment statements showing the down payment and closing costs, details of other assets, and a full list of debts and monthly obligations. Renters may also be asked for a landlord letter confirming rent history, and buyers using a gift from a relative may need a signed gift letter. Required documents vary by lender, so the most reliable checklist is the one your own lender or mortgage broker gives you, and this article explains what each item is for so you can gather it ahead of time. Country, waterfront, vacant land and new construction purchases may need extra documents about the property itself, which a later section covers.
Below are the team's current listings in Eastern Ontario. As you read, it may help to compare asking prices with what a lender might pre-approve, and to note which homes have a well, septic system or acreage, since those details can add documents to your file.
In This Article
- Identification and Proof of Employment
- Income and Rent History Documents
- Down Payment, Closing Costs, Assets and Debts
- Where Your Down Payment Comes From
- Credit History and the Mortgage Stress Test
- Ontario Closing Costs, the Land Transfer Tax Refund and Mortgage Default Insurance
- Extra Documents for Rural, Waterfront and Land Purchases in Eastern Ontario
- Buying From a Distance or Relocating to Eastern Ontario
- Checklist Before You Apply
- Frequently Asked Questions
Identification and Proof of Employment
A mortgage pre-approval is a lender's review of your finances to estimate the maximum amount it may lend you and at what interest rate. The Financial Consumer Agency of Canada (FCAC) explains that, depending on the lender, this process may also let you estimate your payments and hold an interest rate for 60 to 130 days. FCAC is also clear that a pre-approval does not guarantee that you will be approved for a mortgage. Its overview of what lenders ask for during a mortgage pre-approval is a useful starting point before you contact anyone.
Identification comes first. Canada Mortgage and Housing Corporation (CMHC) suggests bringing several pieces of government-issued identification, preferably with a photo. If your name has changed or your identification shows an older address, it may help to ask your lender what additional proof it accepts.
Proof of employment is the second pillar. According to FCAC, lenders may ask for proof of your current salary or hourly rate, such as a recent pay stub, along with your position and how long you have been with your employer. CMHC's mortgage application tips from CMHC add the name and address of your current employer and, where applicable, past employers. Some lenders may also ask for an employment letter, and a recent job change, probation period or contract role is worth raising early, since lenders may treat these situations differently.
Income and Rent History Documents
Income documents show the lender how much you earn and how stable that income is. For salaried and hourly employees, this usually means recent pay stubs and a T4 slip. CMHC lists proof of income such as salary, commission or pension, and mentions the T4 as a useful document. Lenders may also request a recent Notice of Assessment from the Canada Revenue Agency to confirm what was reported on your tax return, particularly when income includes overtime, bonuses or commission that varies from year to year.
Self-employed buyers typically face a longer list. Both FCAC and CMHC mention Notices of Assessment for the previous two years for self-employed applicants. Some lenders may also ask for full tax returns, financial statements for the business, or proof of business registration. Because self-employed income can be calculated differently from one lender to another, a mortgage broker may be helpful for comparing how different lenders view the same file.
Rent history is a document many first-time buyers do not expect. CMHC suggests that renters bring a letter from their landlord confirming rent history. CMHC also lists your current address and at least two previous addresses, where applicable. For a buyer with a limited credit history, consistent rent payments may give the lender useful context.
Down Payment, Closing Costs, Assets and Debts
Lenders want to see that the down payment and closing costs are already available, and where the money came from. FCAC says your lender or broker may ask for recent statements from bank or investment accounts to determine whether you have the down payment. CMHC goes further, suggesting statements for the past several months. A large unexplained deposit may lead to a request for supporting paperwork.
The minimum down payment depends on the purchase price. FCAC's page on minimum down payment rules in Canada sets out the current structure: 5% of the purchase price for homes of $500,000 or less; 5% of the first $500,000 plus 10% of the portion above $500,000 for homes priced from $500,000 to $1.5 million; and 20% for homes of $1.5 million or more. FCAC also notes that the minimum down payment normally must come from your own funds, and that a lender may require a larger amount if you are self-employed or have a poor credit history.
FCAC also lists information about other assets, such as a car, cottage or boat, among the items lenders may request.
Debts are reviewed just as closely. FCAC and CMHC both list credit card balances, car loans or leases, lines of credit, student loans, personal loans, and child or spousal support payments. CMHC also asks for credit card limits, not only balances. These figures feed into two ratios that FCAC describes in its guide to preparing financially for a mortgage: total monthly housing costs generally should not exceed 39% of gross household income, known as the gross debt service ratio, and total debt load generally should not exceed 44% of gross income, known as the total debt service ratio.
Where Your Down Payment Comes From
A gift from a relative is a common source of down payment funds for first-time buyers. CMHC explains that if a relative is paying a portion of your down payment, you will need a signed letter from them acknowledging the purpose of the gift and that it is non-repayable. Lenders may also want to see the gifted funds in your own account before closing, and the wording they accept can vary, so it may help to ask for the lender's own gift letter template.
The First Home Savings Account (FHSA) is a registered plan that allows first-time home buyers to save toward a qualifying first home tax-free, up to certain limits. The Canada Revenue Agency's overview of the First Home Savings Account states that participation room in the first year an FHSA is opened is $8,000, and the CRA's page on withdrawals refers to a lifetime FHSA limit of $40,000. To make a tax-free qualifying withdrawal, the CRA's guidance on qualifying FHSA withdrawals lists several conditions, including having a written agreement to buy or build a qualifying home and filling out Form RC725 and giving it to your FHSA issuer. A qualifying withdrawal does not need to be repaid.
The Home Buyers' Plan (HBP) works differently. It allows you to withdraw from your registered retirement savings plans to buy or build a qualifying home, and the CRA's page on the RRSP Home Buyers' Plan states that the current withdrawal limit is $60,000. Unlike an FHSA qualifying withdrawal, HBP withdrawals are repaid to your RRSP over a 15-year period. The CRA notes that, for a first HBP withdrawal made between January 1, 2026 and December 31, 2028, the start of that repayment period is deferred to the fifth year following the year of the first withdrawal. The CRA also confirms that you may use both the HBP and an FHSA qualifying withdrawal for the same home, as long as you meet the conditions of each at the time of withdrawal.
Credit History and the Mortgage Stress Test
FCAC states that a potential lender will look at your credit report before approving a mortgage, and it suggests ordering a copy before you start shopping to make sure it does not contain errors. If your credit score is not strong, FCAC notes that a lender may refuse to approve the mortgage or may require a co-signer. Correcting an error can take time, so reviewing your report early may help.
The stress test determines the interest rate you must qualify at, which is usually higher than the rate in your mortgage contract. According to FCAC, banks must use the higher of 5.25% or the interest rate you negotiate with your lender plus 2%, and this applies to both insured and uninsured mortgages. FCAC adds that lenders that are not federally regulated may also ask you to pass a stress test. This higher rate can reduce the maximum amount you are pre-approved for, and the Driscoll-Peca mortgage calculator can help you see how different rates change a monthly payment.
The Office of the Superintendent of Financial Institutions (OSFI) sets the minimum qualifying rate for uninsured mortgages under its Guideline B-20 for federally regulated lenders. OSFI describes two parts: a buffer, currently 2%, and a floor, currently 5.25%. OSFI reviews the rate at least annually, so it is sensible to confirm the current rule with your lender at the time you apply rather than relying on an older figure.
A pre-approval is a snapshot. FCAC points out that a lender could refuse a mortgage even after a pre-approval, so taking on new debt or missing a payment before closing may affect the final decision.
Ontario Closing Costs, the Land Transfer Tax Refund for First-Time Buyers, and Mortgage Default Insurance
Closing costs are separate from the down payment and are often underestimated. CMHC's general requirements for mortgage loan insurance suggest planning for closing costs equivalent to 1.5% to 4% of the purchase price, and list items such as lawyer fees, applicable taxes, land transfer tax and adjustments. Lenders may want to see that these funds are available in addition to the down payment, which is why FCAC lists proof that you can pay for both among the documents to provide.
Land transfer tax is one of the larger closing costs in Ontario, and first-time buyers may be eligible for a refund of all or part of it. The Ontario government's page on the Ontario land transfer tax refund for first-time homebuyers states that, beginning January 1, 2017, the maximum refund is $4,000, and that qualifying first-time purchasers pay no land transfer tax on the first $368,000 of the value of the consideration for eligible homes. To qualify, you must be at least 18 and must not have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned one while they were your spouse. The refund is reduced when one or more purchasers is not a first-time buyer.
The refund may be claimed at registration, usually through your real estate lawyer. If it is not claimed then, the tax must be paid and a refund claim may be submitted to the Ontario Ministry of Finance afterward.
Mortgage default insurance, also called mortgage loan insurance, is typically required when the down payment is less than 20% of the purchase price. FCAC explains that this insurance protects the lender, not the borrower, and that premiums range from 0.6% to 4.5% of the mortgage amount depending on the size of the down payment. The premium may be added to the mortgage or paid up front. FCAC also notes that Ontario applies provincial sales tax to these premiums, and that this tax cannot be added to the mortgage and must be paid when you get your mortgage. Your lender coordinates the insurance if it is required, and CMHC states that for its insured homeowner loans the purchase price must be below $1,500,000.
Extra Documents for Rural, Waterfront and Land Purchases in Eastern Ontario
A pre-approval is based mainly on you, but final approval also depends on the property. FCAC notes that before approving a loan, a lender will verify that the property meets certain standards, and that these standards vary from lender to lender. Across Eastern Ontario, from Kemptville and North Grenville to Brockville, Smiths Falls, Perth, Cornwall and the United Counties of Stormont, Dundas and Glengarry, Prescott-Russell and rural south Ottawa, many homes sit outside municipal water and sewer service, on acreage, or on the water. Country know-how matters here, because these details are best understood before you sign an offer.
Wells and septic systems are the most common example. CMHC's property information worksheet from CMHC asks whether water is municipal or from a well, whether sewage is municipal or septic, the heating type, the lot size and the type of ownership. The Ontario government states on its page about rules for wells on your property in Ontario that if you have a well on your property, you are responsible for it, and its Ontario guidance on septic systems says owners are responsible for the operation of their septic system. Public Health Ontario offers private well water testing through Public Health Ontario for E. coli and total coliforms. Some lenders may ask for a water test, a septic inspection or other property information as a condition, so it is worth asking your lender which conditions, if any, apply. For examples of what these homes look like locally, see our guide to farm and rural properties near Kemptville.
Zoning and land use can matter for acreage, hobby farms and properties with outbuildings. Ontario's Ontario guide to zoning bylaws explains that a municipal zoning bylaw sets the permitted uses and required standards, such as building size and location, in each zone, and that a municipality will refuse a building permit for construction that does not comply. Lenders may look at how much land comes with a home, how it is zoned and whether part of it is used for farming or a business, and some may ask for a larger down payment. Your lender or broker can explain how a specific property would be treated.
Building lots, vacant land and new construction usually involve a different kind of financing than a standard resale purchase. A land loan or construction mortgage may have different down payment, documentation and approval requirements, and funds for a build may be released in stages rather than all at once. CMHC's application tips mention building specifications among the property documents a lender may request, and its worksheet asks for supporting estimates or plans for improvements. Buyers considering a lot may want to confirm zoning, access and servicing with the municipality, and should not assume a resale pre-approval applies to land or a build.
Waterfront properties on the Rideau, the St. Lawrence and the region's many lakes can raise their own questions. A lender may ask whether the home is suitable for year-round living or seasonal use, whether road access is maintained all year, and how water and sewage are handled, and these answers may affect which lenders and products are available. Shoreline work and docks may also involve permits or approvals from other authorities. Our overview of waterfront homes in Eastern Ontario covers the region's rivers and lakes in more detail.
Buying From a Distance or Relocating to Eastern Ontario
Many buyers in this region are relocating, including households moving out from Ottawa, people on a government or military posting, and remote workers. The document list is the same, but timing and logistics can differ. It may help to ask your lender how documents can be submitted and signed remotely, whether a relocation or posting affects how your employment is verified, and how long a pre-approval can be held if your move date is uncertain. Remote workers may also want to check what internet service is available at a specific address with providers directly before making an offer, since service in rural areas can vary from one road to the next. For a closer look at the move itself, read why Ottawa buyers are moving to Kemptville for more space.
Checklist Before You Apply
- Ask your lender or mortgage broker for their own document list first.
- Gather government-issued photo identification for every applicant.
- List your current address and at least two previous addresses.
- Collect recent pay stubs and an employment letter, if requested.
- Find your most recent T4 slips and Notices of Assessment.
- If self-employed, prepare Notices of Assessment for the past two years.
- Request a landlord letter confirming your rent history.
- Download several months of bank and investment statements.
- Prepare a signed gift letter if a relative is contributing.
- Confirm FHSA and RRSP balances and the withdrawal steps.
- List every debt, including balances, limits and monthly payments.
- Order your credit report and check it for errors.
- Budget for closing costs separately from the down payment.
- Ask your lawyer about the Ontario land transfer tax refund.
- Ask whether the lender has conditions for well or septic properties.
- Ask how the lender treats acreage, outbuildings and zoning.
- Ask about seasonal, waterfront or private road properties.
- Ask what a land loan or construction mortgage would require.
- Check internet service at the address if you work remotely.
Frequently Asked Questions
Does a mortgage pre-approval guarantee that I will get a mortgage?
No. FCAC states that the pre-approval process does not guarantee approval, and that a lender could refuse a mortgage even after pre-approval. The lender will still assess the specific property and confirm that your financial situation has not changed before final approval.
What documents do self-employed buyers usually need?
FCAC and CMHC both mention Notices of Assessment from the Canada Revenue Agency for the past two years. Lenders may also ask for tax returns or business financial statements, and FCAC notes that self-employed buyers may be asked for a larger down payment. Requirements vary by lender.
Can I use both an FHSA and the Home Buyers' Plan for the same home?
Yes, according to the Canada Revenue Agency, as long as you meet all of the conditions of each program at the time of each withdrawal. A qualifying FHSA withdrawal does not need to be repaid, while Home Buyers' Plan withdrawals are repaid to your RRSP over time.
Do rural or waterfront homes need different mortgage documents?
They may. FCAC notes that lenders verify that the property meets their standards, and these vary by lender. For homes with a well, septic system, acreage or seasonal access, a lender may ask for extra property information or set conditions, so ask your lender or broker before you make an offer.
How much is the Ontario land transfer tax refund for first-time buyers?
The Ontario government states that the maximum refund is $4,000 for conveyances on or after January 1, 2017, and that qualifying first-time purchasers pay no land transfer tax on the first $368,000 of the value of the consideration for eligible homes. Eligibility rules apply, and your lawyer can confirm whether you qualify.
Gathering these documents early may give you a clearer picture of your budget, but your lender, mortgage broker, real estate lawyer or another licensed professional is the right source for advice on your own situation.
Country homes with acreage, a well or water frontage in Eastern Ontario do not come up every week, and when the right one does, buyers who already have their paperwork in order are in a better position to act. Those planning a purchase in Kemptville, North Grenville or elsewhere in the region can speak with Deb Driscoll, Jaime Peca and Luke Geleynse of The Driscoll-Peca Real Estate Team at REAL Brokerage, Eastern Ontario's country property team. They work with rural, acreage and waterfront properties across the region, including homes with wells and septic systems, and can explain those details before you sign while coordinating timing with your lender and lawyer.
Sources: Financial Consumer Agency of Canada, "Getting preapproved for a mortgage," "Preparing to get a mortgage" and "How much you need for a down payment"; Canada Mortgage and Housing Corporation, "Mortgage application tips," "General requirements" for homeowner mortgage loan insurance and "Your home value"; Government of Ontario, "Wells on your property," "Septic systems" and "Citizen's guide to land use planning: Zoning bylaws"; Public Health Ontario, "Well Water Testing"; Canada Revenue Agency, "First Home Savings Account (FHSA)," "Withdrawals and transfers out of your FHSAs" and "The Home Buyers' Plan"; Government of Ontario, "Land Transfer Tax Refunds for First-Time Homebuyers"; Office of the Superintendent of Financial Institutions, "Minimum qualifying rate for uninsured mortgages." Pages reviewed October 20, 2026.
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