Mortgage approval 101

What you need to know about mortgage approval in Canada

Purchasing a property is a big feat for many Canadians. But, for those who are just starting their real estate journey, the process can feel overwhelming, particularly when it comes to securing a mortgage. 

Hear me out: the mortgage approval process is not that scary. One thing that helps is knowing the basics.

Read more below to get your primer on what you need to know about getting a mortgage.  

What is a mortgage and a mortgage pre-approval? 

When you buy a house, a mortgage is the financing that you receive from a lender to purchase your property. In other words, a mortgage is a loan, over an agreed-upon term, provided by a bank or a private lender.  

A diligent buyer will not just think about the mortgage they’ll secure after buying a property—they will be three steps ahead and secure a mortgage pre-approval at the start of their search. 

A mortgage pre-approval outlines the specific conditions a lender agrees to–like the maximum price and interest rate—for your property purchase. Having a pre-approval assures sellers that you're a qualified buyer, increasing the competitiveness of your offers. It also can expedite the process by helping you focus your search on properties within reach. 

How do you get a mortgage pre-approval?

The process is straightforward: you provide a lender with the required information which they use to determine your pre-approval. 

This includes documentation to verify your identity, income, down payment and credit history—as well as a completed application. 

Depending on your specific situation, additional documents may be required, such as a gift letter if part of your down payment is a gift from a family member or explanations on any significant financial events.

It's important to note that these requirements can vary slightly between lenders and mortgage products. 

Let’s connect to set you up for success

A mortgage professional connects with your potential lenders—so you don’t have to make sense of the different options alone–and provides guidance suited to your unique needs. They take the lead in preparing documentation and preparing you for a successful and seamless process from start to finish. 

And that’s where I come in. Get in touch today and set up a discovery call to get started!