The Mortgage Approval Process

Obtaining a mortgage can be intimidating and confusing. Similar to the buyer and seller guides, I’ve outlined the mortgage process for you in 4 easy steps!


Step 1: Mortgage Application


Before an application gets filled out, it’s important to first asses yourself financially. Figure out how much money you have and how much you need to borrow. It’s always critical to sort out how much you can afford so that when you apply for a mortgage you will be able to financially sustain yourself. A mortgage associate will then take an application by phone, in person, or online. Once it has been received, the mortgage application process will begin by verifying the information you have provided.


Step 2: Choose the Right Mortgage Program


Like all homes, Canadian mortgages also come in all shapes and sizes. You have to pick which loan is more aligned with your financial situation and goals. There are four basic types of Canadian home financing loans.

A) Fixed Rate Mortgage

A Fixed Rate mortgage usually has terms that can last from 1 year to 10 years. As the name suggests, the interest rate and monthly payments will remain the same for the specified term.

This type of loan should appeal to you if you:

  • Plan to live in the home for more than 5 years
  • Like the stability of a fixed interest payment
  • Think your income and spending will stay the same
  • Don’t like the risk of having a higher monthly payment

B) Adjustable Rate Mortgage

Adjustable Rate Mortgage (ARM) lasts for 3-5 years. But during these terms, the interest rate on the loan can go up or down which means monthly payments can increase or decrease.

This type of loan should appeal to you if you: 

  • Plan to say in your home for less than 5 years 
  • Don’t mind having your monthly payment increase or decrease
  • Are comfortable with risk of possible payment increases in the future
  • Think your income will probably increase in the future

C) Combination Rate Mortgage

A Combination Rate Mortgage combines fixed interest rates and adjustable interest rates.

This type of loan would appeal to you if you:

  • Want to manage interest rate risk
  • Choose to take advantage of both long and short term rates
  • Like the stability of a fixed interest payment
  • Don’t mind having monthly payment increase or decrease

D) Lines of Credit

Line of Credit is becoming an innovative way to finance your home purchase. You can take the amount you need from the credit limit that you were granted. You only pay interest on what you use and this money can be put towards things like home renovations, a child’s education, and debt consolidation.


Step 3: Mortgage Submission and Approval


Once you select the appropriate mortgage program, you will submit this information to your mortgage associate along with any other required documentation. You will then wait for the mortgage approval from the mortgage associate either through email or fax. After the approval, the associate will also review your commitment to the mortgage. Any additional documents that are required by the lender should be sent to the associate no later than 10 days after the approval.


Step 4: Lawyer


The associate will send the mortgage instructions to your lawyer to review and sign the documents. First you will review all the terms and conditions prior to signing to make sure the interest rate and loan terms are what were promised. Double check to see that the names and address are correctly spelled on the documents. Signing takes place in front of a notary public or lawyer. There will be several fees with obtaining a mortgage and transferring property ownership which will be paid at closing. Bring a bank draft check for the down payment and closing costs if required. Personal cheques are not accepted. You will also need to show homeowners insurance policy and other requirements such as flood or fire insurance and proof of payment.

Alexis-Home Seller and Buyer

Dec 6th, 2023

Never met an agent like Aaron. I can honestly say that I would recommend him to any one that's buying and/or selling. He's with you through every step, answering any questions you may have and making certain that you are happy with your decision. Although it's a short and professional relationship, he makes it feel like you were friends. He has made my decision so much easier. Thanks for going above and beyond, Aaron!

Alexis Harding

AHAlexis Haley

Mike & Louise Whitney-Home Seller & Buyer

Aug 27th, 2019

"A wonderful transition which Aaron made happen seamlessly. Everything was completed in a timely fashion with the utmost professionalism. Top notch service all the way. Aaron went above and beyond to make our move less stressful. His suggestions and advice were very useful and greatly appreciated. 
Cheers Aaron."
~Mike & Louise

MWMike Whitney

Patrick & Felicia-First-Time Home Buyers

Jan 13th, 2021

Aaron did a wonderful job of making my husband and I feel confident in the purchase of our first home. He was very professional and responsive during the whole process and ensured that we felt comfortable each step of the way. Purchasing a home during a pandemic can be a daunting task but with his vast knowledge and remarkable attention to detail we found a home that suited our needs perfectly. ~Patrick & Felicia

 

FLFelicia Listro

Jay & Karly D'Rocha-Home Sellers

Feb 12th, 2024

I recently had the pleasure of working with Aaron Albright as my real estate agent to sell my investment property, and I cannot express enough how grateful I am for his outstanding service. From start to finish, Aaron demonstrated unparalleled professionalism, positivity, and a sincere dedication to ensuring the success of our venture.

One of the most remarkable aspects of working with Aaron was his upfront and honest approach. From our initial consultation, it was evident that Aaron's integrity was unmatched. He provided transparent communication, never sugarcoating any aspect of the process. His sincerity instilled trust and confidence in my wife and me, making us feel comfortable every step of the way.

What truly sets Aaron apart is his willingness to go above and beyond the call of duty. He didn't just list our property and wait for offers to come in – he rolled up his sleeves and got to work. Aaron meticulously inspected the house, made insightful recommendations for improvements, and even took on the responsibility of planning, cleaning, and rebuilding aspects of the property to enhance its appeal.

Aaron's vision for presentation was nothing short of exceptional. His keen eye for detail ensured that both the exterior and interior of the house looked absolutely magnificent. Thanks to his efforts, my wife and I found ourselves marveling at the transformation, almost tempted to move back in ourselves!

Throughout the process, Aaron never once pressured us to make decisions we were uncomfortable with. Instead, he encouraged us to make economical choices when investing in renovations and preparing the house for sale. His guidance was invaluable, helping us maximize the property's potential while staying within our budget.

One of Aaron's greatest assets is his vast network of high-quality technicians who offer reasonable prices. Whether it was a repair person, installer, or contractor, Aaron had a reliable professional ready to tackle any task. His connections saved us time, money, and hassle, ensuring that every aspect of the property was in top condition.

Aaron made the entire sales process simple and easy to understand. He advocated tirelessly on our behalf, ensuring that our best interests were always prioritized. Even after the sale was finalized, Aaron surprised us with a thoughtful cashback gift, further exemplifying his generosity and commitment to client satisfaction.

My wife and I are Aaron's biggest fans, and we wholeheartedly recommend his services to anyone embarking on their real estate journey. With Aaron by your side, you can trust that the stress and worry will be kept at bay, leaving you with more money in your pocket and a lasting sense of gratitude for his exceptional service.

Jay & Karly D'Rocha-Home Sellers
 

JDJason DRocha

Craig & Carol-Lakefront Buyers

Nov 21st, 2019

I can't say enough about how fantastic Aaron was during our search for our cottage home!! He took to heart our concerns, our dreams and our determination to find the perfect place for us. Aaron spent hours researching different lakes, and the ins and outs of different areas so that we were very knowledgeable in making our final decision.
We are SO happy with our new property, and have Aaron to thank for being so patient , trustworthy and just as determined to find the perfect place for us!!
I've never met a realtor who cared as much as Aaron does about his client's happiness...Thanks again Aaron!! ~Craig and Carol

CBCraig Baxter

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