Preparing for a loan application

Records and debt inventory

Start by checking your own credit records at CIC and JICC, especially if you have any doubt about a late payment, an identity match, or an old account — problems are easier to correct before you apply. Then inventory all your debts and revolving credit limits, because a lender counts them in your debt-service ratio and even an unused card-loan limit can reduce your borrowing headroom. Close unnecessary revolving credit where appropriate, and pay down balances that weigh on the ratio.

Documents and timing

Gather your income and tax documents — withholding slips, tax certificates, and returns for the self-employed — and make sure they are consistent with what you will state, because discrepancies between preapproval and final documents can cause a decline. Time the application to avoid a cluster of inquiries just before it (application inquiries are recorded, including six months at CIC), and avoid a recent job change or new borrowing, which weaken the file. The safest first step is a conservative budget, a credit check, and a few dated loan illustrations to compare.

Key points to carry away: Check your CIC and JICC credit records for problems before applying; Inventory all debts and revolving limits — even unused limits reduce headroom; Gather income and tax documents consistent with what you will state; Time the application to avoid a cluster of inquiries and recent changes. Use the linked guides and calculators for the full decision, and confirm anything material with the lender, a licensed broker, a judicial scrivener, or a tax accountant before you act.