Process & paperwork

Underwriting

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

Underwriting is where a pre-approval becomes a real commitment. The lender (and, on insured files, the insurer) verifies the '5 Cs' — credit, capacity/income, capital/down payment, collateral/property, and character — against actual documents, not estimates.

Most conditions fall into a few buckets: confirm income (pay stubs, NOAs, T4s or business statements), confirm down payment and its source, and confirm the property via appraisal. Clearing conditions quickly and cleanly is what keeps a closing on schedule.

A well-packaged file — complete documents, explained deposits, no last-minute new debt — sails through underwriting. This is much of the behind-the-scenes value a broker adds.

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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.

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.

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.

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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