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.
Nicole & Jay DeHaan-Condo Sellers
Jan 4th, 2024
My wife and I recently had the pleasure of working with Aaron Albright for the sale of our condo in Pickering, and we are absolutely thrilled with the results. Aaron's dedication, expertise, and willingness to go above and beyond truly set him apart as an outstanding realtor.
From our initial consultation, Aaron demonstrated a deep understanding of the local real estate market and a clear plan for optimizing the sale of our condo. What truly impressed us, however, was his commitment to ensuring that our property was in the best possible condition before hitting the market. Not only did Aaron provide invaluable advice on staging and presentation, but he also took it upon himself to help with painting and minor repairs to enhance the overall appeal of our condo. This level of dedication was far beyond our expectations and made a significant impact on the outcome.
Throughout the entire process, Aaron's communication skills were exceptional. He kept us informed at every step, promptly answering our questions, and addressing any concerns we had. His transparency and honesty fostered a sense of trust that made us feel confident in every decision we made together.
When it came to negotiations, Aaron's strategic approach and market knowledge were evident. He skillfully navigated the complex process, ensuring that we received the best possible offers for our property. Thanks to his efforts, we were able to secure a deal that exceeded our expectations.
Aaron's commitment didn't stop once the sale was finalized. He continued to provide guidance and support all the way through the closing process, ensuring a smooth transition for us.
In conclusion, we can't speak highly enough of Aaron Albright's services as a realtor. His dedication, attention to detail, and willingness to go the extra mile truly make him stand out in the industry. If you're looking for a realtor who will not only help you sell your property but also make sure it's presented in the best possible light, Aaron is the one to choose. Selling a property can be a stressful experience, but with Aaron's expertise and personal touch, it turned into a seamless and rewarding journey. Thank you, Aaron, for your exceptional work! Nicole & Jay-Condo Sellers
Richard & Linda-Repeat Clients
Aug 27th, 2019"Aaron has consistently gone above and beyond what was expected, twice now, for my family. Aaron has made excellent sales for two of my family members, each time very quickly and at good prices. He cares about all of the little details and researches the area thoroughly to get the best price for your house. He leaves you in the driver seat but gives the best advice! I highly recommend working with Aaron, if you want to have as painless a sale as possible. Thanks Aaron!" ~Linda & Richard
Alexis-Home Seller and Buyer
Dec 6th, 2023Never 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
Steve & Melanie-New Home Buyers
Aug 27th, 2019"Dealing with Aaron has been awesome. Nothing beats the expertise he brings and the piece of mind knowing your best interests are his #1 priority. He does his homework and provides very detailed information to help you make the best decisions. I've had the luxury to have bought a home with Aaron on our team and it couldn't have gone any better. We got exactly what we wanted, on our terms and you can't beat that. Not only do I recommend Aaron Albright, I trust him 100% and hope everyone has the opportunity to have him in your corner on your next purchase or home sale. You won't be disappointed." -Steve & Melanie
Lucas & Julie-Home Sellers and Buyers
Jan 19th, 2019Aaron truly is an amazing person. He helped find our perfect family home. With time, kindness, patience and professionalism, he was always there for anything. We appreciate everything you did for us and without a doubt, if you're looking to sell or buy, Aaron's your guy! He is absolutely the best! ~Julie & Lucas
Real Estate Websites by Web4Realty
https://web4realty.com/