1. Set a comfortable budget
Separate the maximum possible approval from the payment you want to carry. Include property tax, heating, insurance, condo fees, maintenance, transportation and savings.
2. Prepare the file
Gather identification, income confirmation, down payment statements, debt details and an explanation for any unusual credit or banking activity. If you are self-employed or new to Canada, start earlier.
3. Get conditionally pre-approved
A pre-approval can establish a working range and may include a rate hold, depending on lender and product. It is conditional: the property and all current information still require final approval.
4. Shop for the right property
Look beyond the list price. Taxes, utilities, condo documents, insurance availability, needed repairs and commuting costs change affordability. Your real estate representative, inspector, lawyer and insurer each have a role.
5. Protect the offer
Use appropriate conditions based on professional advice. A financing condition gives time to submit the property and application for lender review. An inspection can reveal issues that affect cost, safety or insurability.
6. Complete lender conditions
Respond quickly to requests for updated pay records, statements, down payment evidence, appraisal access, insurance and property documents. Do not assume approval is final until conditions are satisfied in writing.
7. Meet the lawyer and close
Your lawyer handles title, mortgage instructions, required funds and registration. Ask what certified funds or transfers are needed and when. Arrange utilities, insurance and your possession-day plan.
Mortgage do’s and don’ts before closing
Do
- Keep making every payment on time.
- Keep down payment funds traceable.
- Save new statements and pay records.
- Tell your broker about changes immediately.
- Maintain a closing-cost and emergency buffer.
Don’t
- Finance a vehicle or large purchase.
- Open or close credit without discussion.
- Move large unexplained sums.
- Change employment without checking the impact.
- Waive protections without professional advice.
Homebuying questions
Who orders the appraisal?
The lender or broker usually arranges it through an approved appraisal process when required. The appraisal supports the lender’s valuation; it is not a home inspection.
What are closing costs?
They can include legal work, registration, adjustments, inspection, appraisal, insurance and moving costs. The amount depends on the property and transaction, so confirm a personalized estimate.
Can I change jobs before possession?
A change can affect approval. Speak with your broker before accepting or starting a new role so the lender’s treatment can be checked.