Process & paperwork

Home inspection

Definition

A professional review of the property's structural, mechanical, and safety condition.

Not legally required but strongly recommended on every resale purchase. Typical cost: $400-$700.

A home inspection is your due diligence on the building itself — roof, foundation, electrical, plumbing, HVAC, and signs of water or pest damage. It's distinct from an appraisal, which is the lender's check on value, not condition.

In competitive markets some buyers waive the inspection to strengthen an offer, or use a pre-offer inspection instead. Waiving is a real risk: a missed structural or moisture issue can cost far more than the $400–$700 inspection fee.

The inspector's report is also a negotiating tool — material defects can justify a price reduction or seller repairs before closing.

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Appraisal

An independent valuation of the property used by the lender to confirm the purchase price is reasonable and to determine maximum loan-to-value. Most files require a full appraisal; some refinances accept a desktop or automated valuation.

Mortgage broker

A licensed professional who shops your mortgage across multiple lenders to find the best fit. Paid by the lender on funding (not by you). Regulated provincially — FSRA in Ontario.

Pre-approval

A lender's conditional, written estimate of the maximum mortgage you can get and the rate it will hold for you while you shop. Rate guarantees run about 60 to 130 days depending on the lender. It is not a final approval: the property, appraisal and updated documents still have to be approved.

Renewal

When your term ends, you sign a new mortgage agreement for the remaining balance: same property, new rate and term, with your current lender or a new one. Federally regulated lenders must send a renewal statement at least 21 days before the term ends.

Underwriting

The lender's review of your application — credit, income verification, asset confirmation, property appraisal — leading to formal approval and a mortgage commitment.

Power of sale

An Ontario lender's right to sell a property to recover an unpaid mortgage without going through formal foreclosure. Faster than US-style foreclosure. Specialty advisors can negotiate workouts.