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.

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

Lucas & Julie-Home Sellers and Buyers

Jan 19th, 2019

Aaron 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

LKLucas Julie Krasovskis

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

RARichard Attenborough

Don & Kim -Home Sellers

Oct 13th, 2021

 We were pleasantly surprised by Aaron’s expertise and knowledge . From the initial discussion of selling our home to the final sale and signing of paperwork , Aaron has been with us every step of the way. He answered any questions we had , staged our home superbly and guided us through the offers made and considering our options. We would highly recommend using Aaron Albright as your realtor in selling your home. ~Kim & Don

DMDon and Kim MacNeil

Tonya & Matt Greenwood-Buyers and Sellers

Jan 9th, 2022

"Aaron has exceptional insight, experience and knowledge of the market. When we wanted to sell, he knew how to maximize the appeal of our home within our budget. He took a personal hand in renovating the kitchen, upgrading our yard, fixing problem areas and staging our house – as a result we sold comfortably over asking. When we were looking to buy, he was exceptional in his ability to assess the strengths and problem areas of potential properties, which helped us find a hidden gem of a home well within our price range. Aaron works hard for you and delivers results – and we are so thankful for everything he’s done for us!" Tonya & Matt Greenwood

TGTonya Matt Greenwood

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