Services · 01 · Buying
Buy with the numbers settled first.
A pre-approval, a clear budget and a closing-cost estimate before you make an offer, so the offer you sign is one you can close.
01
What it is
A purchase mortgage is arranged in two stages. First comes a pre-approval: a lender reviews your income, credit and down payment and tells you how much it is prepared to lend, usually holding a rate for a set period. Then, once you have an accepted offer, the lender approves the property itself.
My part is to work out what you can comfortably carry, compare lenders on rate, penalties and prepayment terms, and keep the file moving so your financing condition is met on time.
Who it is for
- First-time buyers who want to know their real budget
- Owners moving up, down or to another city
- Newcomers to Canada with a short credit history
- Buyers with a gifted down payment or a co-signer
How it works
Eight questions
Tell me the price range, down payment and income. No documents yet.
Document checklist
You upload income and down payment documents in one secure place.
Pre-approval
A lender reviews the file and holds a rate, commonly for 90 to 120 days.
Offer to closing
With an accepted offer, the lender approves the property, you sign with your lawyer, and the funds are advanced on closing day.
Documents to have ready
A starting list. Your own checklist is built after the first conversation.
- Government photo ID
- Recent pay stub and a letter of employment
- T4s or Notices of Assessment for the last two years
- 90 days of statements showing the down payment
- A gift letter, if family is helping
- The purchase agreement and listing, once you have a property
Common questions
How much down payment do I need?
At least 5% of the first $500,000 and 10% of the amount above that, for homes under $1.5 million. Homes at $1.5 million or more need 20%. A property you will not live in generally needs 20% as well.
Is a pre-approval a guarantee?
No. It is a lender's conditional commitment based on your file. Final approval also depends on the property, the appraisal, and nothing material changing in your income, debts or credit before closing.
What does it cost to use a mortgage broker?
For most purchases with a prime lender, the lender pays the brokerage and you pay no fee. Where a fee applies, as it can with alternative or private lenders, you are told the amount in writing before you commit.
How long does it take?
A pre-approval often takes a few business days once the documents are in. After an accepted offer, leave about five business days in your financing condition for the lender to approve the property.
Talk it through with Hamed.
Eight questions, about a minute. Hamed reviews your answers and calls you, usually the same business day.