Before Jumping In – Know What You Can Afford
Your home search depends on knowing what you can afford. In Canada, loan approval guidelines are complex, with various factors involved. Below, we outline the key elements affecting your mortgage application. Talking to a mortgage professional—whether at a bank or discount lender—can help you understand your options and get a clearer picture of your interest rate and mortgage terms.
The Right Stuff (We’re Talking About Your Documents)
Mortgage lenders now require more documentation than they did a few years ago due to stricter regulations. While it used to be as simple as providing a tax return and a bank statement, the list has grown longer. Don’t worry—your mortgage professional will guide you through the necessary documents, explain their purpose, and help you find any that you’re unsure of.
Make Sure You Are Confident with that Pre-approval
Be cautious if your bank gives you a pre-approval without reviewing your documents or thoroughly investigating. Getting declined after making an offer is frustrating, often because your banker missed key details. Work with a reputable mortgage professional who takes the time to review your file so you can move forward confidently. Remember, the property also needs approval, so pre-approval doesn’t guarantee final approval.
Now the Fun Starts – Finding Your Home!
Once you’re pre-approved, take time to define your main needs and goals before starting your home search. Discuss your options with your realtor—do you want a move-in ready home or a fixer-upper? The process moves quickly, so while staying in close contact with your realtor, keep your mortgage broker informed too. They’ll be ready to act as soon as your offer is signed.
Offer Accepted! Time to Iron Out the Final Details
After your offer is signed, your mortgage professional will secure final approval. While most conditions are standard, your broker will guide you through the rates and options available. They’ll also finalize details with the lender, including any additional documents needed. This is the time to discuss payment schedules, like monthly or bi-weekly payments. Once you sign your mortgage loan commitment, you’re ready for the final step—completion!
The Last step: Getting Into Your New Home!
Once you’ve made your deposit and finalized the details, you’re almost there. Your lender will send the mortgage information to your lawyer, who will handle the final steps. Your mortgage professional ensures everything runs smoothly while your lawyer completes the title and mortgage registrations. Finally, your realtor will hand you the keys on move-in day—welcome to your new home!
