The Mortgage Process


For most people choosing a mortgage plan and buying a home is one of the most important financial decisions that they will make in their lifetime.

A few things to consider before starting the mortgage process:

  • Review your credit score.  Mortgage lenders will review your credit score and it will play a role in qualifying you your mortgage loan.
  • Calculate how much you can actually afford before shopping for a new home.
  • Save down payment required to secure your mortgage loan.
  • Set aside additional spending for closing fees, insurance, property taxes, home inspection and other costs associated with purchasing a new home

Understanding the Mortgage Process

Step One: The Mortgage Application
Get in touch with your Mortgage Broker, or schedule an appointment to understand the requirements to see which type of mortgage is best suited for you.

More often than not, your Mortgage Broker will ask to see the following documents:

  • Employment information
  • Current mortgage information (if applicable)
  • Assets and liabilities
  • Credit report (and/or authorization for one) and basic information such as name, address, SIN number and birthdate.
  • Employment Verification: A current Letter of Employment and pay stub. You may also be asked to provide last year’s T4’s or Notice of Assessments for further history. If you own a business, be prepared to provide the last 3 years of Revenue Canada Notice of Assessments and possibly financial statements.
  • Sale Agreement for your current home and mortgage statement (if applicable)
  • Purchase agreement (if applicable)
  • MLS listing (if applicable)
  • Confirmation of your down payment

Step Two- Determining the Type of Mortgage:
A Mortgage Broker’s advice will assist you in determining the very best mortgage solution to fit your financial needs and goals.

Once your Broker has a good understanding of your financial status, goals and plans for the future they will evaluate your overall strategy for purchasing a home.
Often times, your mortgage solution can depend on some of the following questions:

  • Do you plan on living in your new home for many years? Or is this a short-term living arrangement?
  • Are you planning to make improvements or renovations to the home?
  • Are you purchasing this home as a second residence?  Or as a rental property?

Step Three: Mortgage Approval
Congratulations! After you have been approved for a mortgage you will go through the mortgage approval form with your Broker. Your Mortgage Broker will be able to walk you through the forms and answer any of your questions. At this point you will also get in contact with your lawyer or solicitor.

With the help of your Mortgage Broker, your lender will forward the mortgage instructions to your lawyer/solicitor. The final stage is to meet with your lawyer to sign all of the legal documents.

Get Pre-Approved before you start looking for a home
By receiving pre-approval, this will allow you to better understand what you can afford before you begin shopping for a home.