Written by: Scott Nazareth

Getting a mortgage can be a time consuming task. I’m Scott Nazareth from mortgages.ca, I take clients through the mortgage process by providing access to multiple lenders in the marketplace rather than products from just one institution. I’ve outlined the mortgage process for you in 4 easy steps: 

STEP 1 : Fill Out A Mortgage Application 

Filling out a full mortgage application takes about 10 minutes. It’s okay if the answers are not 100% accurate as they will be clarified/cross referenced with the documentation you submit to your broker alongside your application. 

Your broker will underwrite the file, just like a bank would, giving you the certainty in knowing how much you qualify for and what products are available. Including your accountant in the document collection process can save you a ton of time as they will have digital copies available at their fingertips. 

Your broker will include a checklist of all documents required as a main reference point and to reduce any back and forth. Once your broker reviews your file they will issue you a pre-approval letter outlining your maximum affordability. This letter provides buyers the confidence to operate in competitive situations.

STEP 2 : Choosing A Mortgage Product/Rate 

It’s important to not be lured in by the sticker price, often the fine print is much more important. Mortgages are often not, one-size fits all products. Choosing a mortgage type, fixed or variable is often a conversation that includes considerations such as appetite to risk, upcoming life events like marriage or starting a family, prospects for job relocation and much more. 

On the surface, a fixed rate mortgage does not change for the entirety of your term. A variable rate mortgage can fluctuate, up or down, depending on market conditions. There are many caveats to consider including the type of lender and specific product features/benefits. Don’t worry, you do not have to decide on a mortgage product during the pre-approval stage and your broker will be able to show you the best deals available. Your mortgage product is decided on when you purchase a property and typically takes about two business days from application to approval. 

STEP 3 : Mortgage Approval

Your mortgage approval is a commitment letter from the lender for the specific product and rate you have selected. It includes your interest rate, mortgage payment, amortization along with the terms and conditions of the loan. The typical conditions on a mortgage commitment include income verification and down-payment tracking. 

Most of your income documentation is collected up front so ideally we have your income already signed off on from the lender. The lender may ask for an updated employment letter or pay stub / invoices  to show continuous work. 

Your down-payment is confirmed via bank statements obtained easily online and traces the source of your down-payment. The commitment letter and mortgage documentation is sent electronically and can be signed easily with a few mouse clicks. You will receive a courtesy copy for your records.

Step 4: Closing The Transaction

Once you have fulfilled all conditions in the mortgage commitment your lender will send an instruction package to your lawyer. Your lawyer will review all of the documents with you and confirm things such as your first payment date, your selected payment method and your payment frequency (monthly/biweekly/weekly). 

The lawyer will also perform certain tasks such as a title search and title registration. During this process you will receive a statement of adjustments ledger. The statement of adjustments will provide you with an account of your initial deposit, closing costs (land transfer tax, legal fees, title insurance) and the remainder of your down payment. Your lawyer will request a draft or wire transfer for the balance outstanding to be held in your lawyer’s trust account. On closing your lawyer will transfer the funds to the seller to complete the transaction.

We advise leaving it to an expert when looking for a mortgage. Contact Scott for your pre approvals & inquiries: scott@mortgages.ca.