Process & paperwork

Home inspection

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 written commitment from a lender estimating how much you can borrow at what rate, valid for 90-120 days. Subject to property appraisal and final underwriting on a real purchase.

Renewal

When your term ends, you sign a new mortgage agreement — same property, new rate, new term. About 60% of Canadians take the bank's first offer; brokers typically beat it by 30-60bps.

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.

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