Steps to Getting Mortgage Financing

Like all things in life, there is a process. It's our job to make the mortgage process painless and as easy as possible. The following is the general flow when obtaining mortgage financing:

Step 1: The Mortgage Application

• In the very beginning we take some basic information from you like your Social Insurance Number, date of birth, names and address. This is so we can pull your credit bureau. This is truly the first step and tells us a wealth of information about how we need to proceed from there. We will get you to sign an authorization for us to pull your credit bureau.
• We will also ask you if you work for an employer or are self employed. We'll need to know your salary and how long you've worked there.
• We need to know your assets (e.g. automobiles, stocks, RRSP's, etc.), as well as your liabilities (car payments, current mortgages, credit card debt).
• If you've made an offer on a property, we'll need a copy of the offer to purchase and an MLS highlight sheet (if applicable).

Step 2: Approval

• We will take all of the above information, package it, and send it to an appropriate lender for approval. We generally receive approvals in 24-48 hours.
• Any approval is "conditional", pending the supporting documentation.
• You will have to sign this mortgage approval and take or decline mortgage life insurance.

Step 3: Supporting Documents

• This is when the lender wants us to verify the information we provided in the beginning. You will be asked to get a letter from your employer and a paystub to verify your income. If you are self employed there is other documentation required, please see our Self Employed page for details. You may also be asked to provide your Notice of Assessments from the past two years or a copy of your T4.
• If you have sold your current home and are buying a new one, a copy of the sale agreement and mortgage statement may also be required.
• You will need to verify your downpayment and document its source.
  • from sale of another property - sale agreement or statement of adjustments from solicitor
  • gift - copy of gift letter stating that the downpayment does not have to be repaid
  • investments - copy of investment statement
  • savings - three months of bank statements showing the money in your account
• We will order an appraisal on the property you are purchasing. The cost to you is between $300 and $400.
• We will also ask you to provide your lawyer information.

Step 4: Funding!

• Once all the written conditions on the mortgage commitment have been met, the lender will "instruct" your lawyer. Your lawyer will have some conditions to meet as well (he/she will explain them all to you). Once all conditions have been met, the lender funds the mortgage and you get you keys!