MORTGAGE PROCESS

    What's involved in buying a home and getting a mortgage?

    • Step 1: Pre-Approval
    • Step 2: House Hunting
    • Step 3: Offer in and Accepted
    • Step 4: Lender, Insurer, Appraisal
    • Step 5: Firm Sale
    • Step 6: Moving Details
    • Step 7: Meeting with your Lawyer
    • Step 8: Possession
    • Step 9: First Mortgage Payment

    When you first decide you want to purchase a home, it is wise to get a pre-approved mortgage. The pre-approval will tell you how much of a mortgage you qualify for, ensuring you are looking at homes in your price range. Luckily, you're in the right place! I can arrange a pre-approval quickly and easily. Please click here to apply now.

    Once you know your price range, your REALTOR® will begin researching available properties and will show you homes that fit your criteria. If you do not have a REALTOR® please let me know, I can give you a list of reputable ones.

    Once you’ve found the home you are interested in, you will make an offer on the property. You will need to make your offer conditional on obtaining financing. Your REALTOR® will help you to add a condition in your offer that makes it “subject to financing,” meaning that you are asking the seller for some time to complete your financing, before finalizing your offer. Your offer may also have other conditions, such as “subject to a satisfactory home inspection” or “subject to review of the condo documents.” Once the offer has been accepted and signed by the seller, you will need to provide a copy of the purchase agreement to me so I can get started on your file!

    This is where my job really begins. Once you make an offer on a home you will be given some time to complete your financing and arrange for a property inspection (and deal with any other conditions you have put in your offer). This is called the "condition period". Generally speaking, you are usually given approximately one week to complete your conditions. At the time of your offer you will give an initial deposit on the property (the amount is negotiable). Please ensure you have easy access to enough funds for your deposit, via a personal line of credit or cash in a bank account; this is especially important if your down payment is coming from an RSP as you will not have the RSP funds available at the time you write the offer on the home.

    During the "condition period" I will send your file and property information out for approval and will work with the lender, insurer, and appraiser to get you final approval on the financing. Once received, the lending institution sends your information to the default insurer, if applicable. The default insurer underwrites your file and either conditionally approves it, asks for additional information/modifications to the deal or declines the file. If your down payment is 20% or more, you will usually require a property appraisal. I may ask you for further documentation at this time depending on the specifics of your file. You will need to collect the requested paperwork and submit it to me in a timely fashion, so the underwriter has a chance to review and approve your documentation. If approved, your lender will ask me to forward all supporting documentation to them (income, down payment etc). They will review the documents to ensure that the information contained in your application was accurate.

    Once your documents have been reviewed, and approved, and we have met to sign your mortgage documents I will receive an email from the lender explaining that your financing conditions have been met. I will forward this email to you so you can then remove the conditions on your offer. Generally speaking, at this time, you will give a second deposit to the seller.

    Once you have met all of your financing conditions, you will remove the “subject to financing” condition from your purchase contract. This is done through your REALTOR®. You may remove other conditions at the same time (if they have been met), such as “subject to a satisfactory home inspection.” Once all of the conditions are satisfied, you have a “firm sale”. A firm sale means that you have unconditionally purchased the property. The lender will begin to prepare mortgage instructions (paperwork) and, once completed, they will be sent to your lawyer’s office. If you do not have a lawyer, please let me know. I can send you a list of a few lawyers that I work with on a fairly regular basis. Now you simply wait until you get closer to your possession date.

    The lawyer will receive and prepare your mortgage documents. Use this time to start preparing for the move.

    The lawyer will contact you to arrange for a time and date for you to visit their office to sign the mortgage and legal documents. Approximately one week before your possession, you will meet with a lawyer to sign additional paperwork and, at this time, you will bring your lawyer a money order/certified cheque for the balance of your down payment (your down payment minus any deposits you have already given to the seller) as well as your legal fees.

    Time to move into your new home! The possession date is the day the money is given to the sellers and the property is transferred to your name.

    Unlike with rent, which is paid at the beginning of the month, you make your mortgage payment at the end of the month. For example, if the purchase of your home was completed on June 1, and you chose monthly payments, you will not have a mortgage payment until July 1. You will receive the details of the mortgage repayment from your mortgage lender.