- Initial Discussion: Begin by having initial discussions with at least three different lenders to explore rate and interest options and find a reliable lender suited to your needs.
- Loan Application + Documentation: Submit your loan application along with necessary documentation, including property information and employment or income verification.
- Pre-Approval: After submitting your documentation, the lender will review your information and pre-approve you for a mortgage loan, providing confidence to proceed with your property search.
- Lender Underwriting: Once you’ve found a property, the lender will assess the property price against your financial situation to determine the best loan option. They’ll also verify if your income remains stable and approve or deny your loan application.
- Conditional Commitment Processing: If your application is approved, the lender will create a conditional commitment document outlining the loan terms. This document is shared with your lawyer and REALTOR (if applicable) to proceed with the transaction.
- Pre-Closing: Your lawyer and lender collaborate to prepare and register the mortgage with the Land Titles Office, ensuring all necessary paperwork is completed, down payments are made, and insurance is confirmed.
- Closing: Your lender transfers the mortgage funds to your lawyer’s trust account, and your lawyer manages the final steps to officially transfer ownership. You receive the keys, and your name is registered on the title, marking the completion of the loan process.
This guide offers a comprehensive overview of the mortgage loan process in Canada, highlighting key steps and considerations to ensure a seamless and successful experience. Working with a designated lawyer and local real estate agent can further support you throughout this journey.