Client Resources
We're Just Starting a Mortgage Pre-Approval
Will my credit be checked?
Yes — but only with your permission.
As part of the application process, you will sign a consent form allowing us to obtain your credit report. This authorization is required before we can check your credit, but it does not automatically mean a credit check will be performed immediately.
When you complete your application, you will provide details about your existing loans, credit cards, and monthly payments. As long as the information provided is accurate, we can usually review your situation and discuss several mortgage scenarios before pulling your credit.
In most cases, we review your credit after we meet to discuss your mortgage strategy and confirm we are ready to move forward with the pre-approval.
Many people worry that credit checks will damage their credit score, but the impact is typically very small. In addition, credit bureaus treat multiple mortgage inquiries within a 45-day period as a single inquiry, allowing us to shop for the best financing options without significantly affecting your score.
How long does a pre-approval last?
Most mortgage pre-approvals are valid for up to 120 days.
During this time, the lender guarantees your interest rate while you search for a home.
In some cases, the rate hold may be shorter. Certain lenders — particularly alternative lenders — may only guarantee a rate for about 45 days.
When we complete your pre-approval, we’ll confirm exactly how long your rate is guaranteed and discuss the best strategy while you’re shopping for a home.
What documents are required for a pre-approval?
After you submit your application, you’ll be automatically directed to a page with a complete list of documents needed to complete your pre-approval.
Most applications fall into one of two categories:
- Employed (full-time or part-time)
- Business owner / independent contractor
Employed (Full-time or Part-time)
Most lenders will require:
- Two pieces of valid government-issued photo ID (front and back — health cards are not accepted)
- Employment verification letter
- Recent pay stub
- T4 slips from the past two years
- Proof of down payment: three months of bank statements showing where your down payment is currently held
Business Owner / Independent Contractor
Most lenders will require:
- Two pieces of valid government-issued photo ID (front and back — health cards are not accepted)
- T1 General tax returns for the past two years
- Notice of Assessment for the past two years
- 12 months of business bank statements from the account where income is deposited
- Proof of down payment: three months of bank statements showing where your down payment is currently held
More or fewer documents may be requested depending on the lender and your specific financial situation.
Is a pre-approval a guarantee of financing?
No. A mortgage pre-approval does not guarantee final approval.
Most lenders do not fully review or underwrite an application until you have an accepted offer on a property. A pre-approval allows us to review your income, credit, and down payment to estimate how much you can qualify for before you begin shopping for a home.
However, financing can still be affected by changes such as:
- Income or employment
- Credit or new debts
- Down payment availability
- Interest rates or mortgage rules
- The specific property you choose to purchase
Once your pre-approval is complete, we work closely with you and your real estate agent to ensure the properties you consider fit within your financing plan. This helps you shop with confidence and reduces the risk of surprises during the mortgage approval process.
Where do I find the documents you requested?
There are many documents required when preparing for a mortgage application.
This Google Drive folder contains samples of the most commonly requested items and video tutorials on where to find specific items like bank statements and tax documents:
Commonly Requested Documents
👉 T4
👉 T4A
👉 T5
Video Tutorials
👉 How to Find Transaction Histories
👉 How to find a Notice of Assessment or Statement of Accounts (CRA)
We're Pre-Approved and Searching for a Home
The Do's and Don'ts of a Mortgage Pre-Approval
Once your pre-approval is complete, it’s important to keep your financial situation stable until your purchase closes.
Lenders will re-verify your employment, credit, and down payment funds before closing.
Changes to income, credit, or your down payment can affect your ability to obtain final mortgage approval.
Do
👉 Share the MLS listing, Realtor.ca link, or property address with me before submitting an offer (during business hours) so I can confirm the property meets lender requirements.
Don’t
👉 Change your employment status (no quitting, job switching, or reduced hours)
👉 Open new credit accounts (including credit cards, loans, or “buy now, pay later” plans)
👉 Make large transfers into the accounts where your down payment or closing funds will be sourced
If you have questions while house hunting, feel free to reach out during business hours.
Business Hours
Monday – Friday: 9:00 AM – 6:00 PM
Saturday: 10:00 AM – 2:00 PM
What happens if interest rates change while I'm house hunting?
In most cases, your pre-approval includes an interest rate hold for up to 120 days.
This means the lender guarantees an interest rate equal to or lower than your pre-approved rate, provided your home purchase both occurs and closes within that timeframe.
If interest rates decrease while you are house hunting, we will always request the lowest available rate when submitting your mortgage application. If rates drop further between approval and closing, we will also request a rate reduction from the lender whenever possible.
However, some lenders — particularly alternative lenders — do not offer rate holds. In these cases, your mortgage rate may change if market rates increase before your purchase is finalized.
If this applies to your situation, I will keep you informed throughout the process and explain how any rate changes could affect your maximum purchase price and monthly payment.
What are financing conditions, and will I need one when placing an offer?
A financing condition is a clause included in your offer to purchase that protects you if you are unable to obtain mortgage financing.
This condition gives us time to submit your application to the lender, obtain a full approval, and complete any remaining requirements, such as an appraisal if needed.
If financing cannot be arranged during the condition period, you can withdraw from the purchase agreement, and your deposit is returned.
Should you include a financing condition?
In most cases, we strongly recommend including a financing condition to protect you during the approval process.
However, in competitive markets, sellers may prefer firm offers (offers without conditions). In these situations, removing the financing condition can make your offer more attractive to the seller.
What happens if you make a firm offer?
When you submit a firm offer, you are committing to complete the purchase regardless of whether financing is approved.
If financing cannot be arranged and you are unable to complete the purchase:
🚩 You may lose your deposit
🚩 You may be responsible for additional costs if the seller suffers financial damages as a result
How we help manage this risk
Before you begin house hunting, we complete a detailed review of your finances and work closely with you and your real estate agent throughout the process.
If your agent recommends submitting a firm offer, we will review the property and your financing situation and advise whether doing so is appropriate based on your specific circumstances.
How long does a financing condition last?
As a general rule, we request financing conditions of 3 - 5 business days.
This timeframe gives us enough time to submit your mortgage application to the lender, obtain a full approval, and complete any additional requirements, such as an appraisal if needed.
However, every purchase is different. In some situations, the timeline may be shorter or longer depending on the property, the lender, and the competitiveness of the offer.
While you are house hunting, we work closely with your real estate agent and will advise on appropriate financing condition timelines to ensure you are properly protected while keeping your offer competitive.
What happens once my offer is accepted by the seller?
Congratulations! Once your offer is accepted, please let me know right away so we can begin the mortgage approval process.
Your real estate agent will send me the Agreement of Purchase and Sale (APS) along with the MLS listing for the property.
At this stage, you will also submit your deposit to the seller’s brokerage. Once available, please provide a copy of the deposit receipt or draft order, as the lender will require confirmation that the deposit has been paid.
Once I receive the necessary documents, I will submit your mortgage application to the lender we selected during your mortgage strategy call.
You and your real estate agent will receive daily updates (Monday to Friday) on the status of your application. Once your mortgage is approved, I will contact you directly and send an email outlining the next steps.ho are interested get more information. You can emphasize this text with bullets, italics or bold, and add links.
Our Mortgage Has Been Approved
How long do I/we have to sign the mortgage approval?
I recommend signing your mortgage approval as early as possible.
Signing the commitment does not bind you to the mortgage. You can still make changes or walk away if needed. However, once you sign, the lender is committed to lending to you — provided all conditions are met (income, down payment, credit, etc.).
Signing promptly helps avoid delays that could impact your closing date.
Will I/we require an appraisal?
Most purchases with less than 20% down do not require an appraisal.
In some cases, the default insurer (CMHC, Sagen, or Canada Guaranty) may order one. These appraisals are arranged directly by the insurer and often happen behind the scenes, so you may not be notified.
If you are purchasing a home with a down payment of more than 20%, or refinancing/switching your mortgage at renewal, you may require an appraisal.
If the lender requests an appraisal not covered by the insurer, or you're refinancing/switching your mortgage at renewal:
👉 You may be asked to pay for it upfront (typical cost ranges from $300 - $600)
👉 Send me a copy of your invoice.
👉 The cost (up to one appraisal) will be rebated in full after closing if your mortgage is completed through my office
👉 Rebates may take up to 30 days after closing.
👉 Rebates do not apply to alternative or private mortgage lenders (speak with me for more details)
‼️ Important: Appraisal Copies
Please note that you will not receive a copy of the appraisal, regardless of who pays for it.
The appraisal is ordered for the lender (or insurer) and is considered the lender's (or insurer's) property. Most appraisal firms prohibit brokers from distributing copies to borrowers due to liability and regulatory concerns.
That said, I will always review the report and share the confirmed valuation along with any details that may impact your purchase or mortgage approval.
Do I/we require a life insurance policy?
Life insurance is not required to obtain a mortgage.
However, I strongly recommend speaking with a licensed insurance professional to plan for unexpected events.
Ask yourself: If one or both incomes were to stop for 2+ months, how would the mortgage be paid?
If you'd like an introduction to my trusted insurance advisor, I’m happy to arrange one.
What is the difference between MPP and Life Insurance?
Mortgage Protection Plan (MPP):
👉 Covers only your mortgage balance
👉 Coverage declines as your mortgage decreases
👉 Premium stays the same
👉 Typically post-underwritten (claims reviewed at time of claim)
Life Insurance:
👉 Covers a fixed amount you choose
👉 Coverage does not decline
👉 Fully underwritten upfront (may require health review)
👉 The claim is guaranteed if approved during the application
I strongly recommend speaking with a licensed insurance advisor to determine what’s best for your situation.
Once I’ve/we’ve signed the mortgage approval, what happens next?
1️⃣ Outstanding documentation (Please complete within 3 days):
👉 We’ll gather any remaining documents needed to satisfy lender conditions. This may include updated income or down payment documents.
👉 Please continue uploading all items through the document portal.
2️⃣ Employment verification (if applicable):
👉 The lender may verify your employment with your employer or HR department.
👉 If they cannot reach anyone directly, I may ask you to help coordinate a quick introduction.
This step is simple and usually takes only a few minutes for the lender to complete.
3️⃣ Broker Complete:
Once all documents and verifications are finished, your file becomes “Broker Complete” (or “File Complete”).
This means:
👉 All income, down payment, and credit conditions are satisfied
👉 Mortgage instructions are sent to your lawyer
👉 Your file is ready for closing
‼️ Important:
Do not change jobs, take on new debt, or miss payments before closing.
Lenders may re-check employment and credit prior to funding.
4️⃣ Arranging Homeowner’s Insurance:
👉 Lenders require fire/home insurance before closing.
👉 If you are buying a condo, this may not be required (depending on the building coverage).
👉 You may obtain insurance through any provider. Provide them with the Mortgage Loss Payee details I sent you in the “Mortgage Approval: Next Steps” email.
👉 Our partners at Simplinsur can provide a no-obligation quote in about 10 minutes or less. Let me know if you would like me to connect you with them.
👉 Please note: If you choose Simplinsur, they may pay us a referral commission.
5️⃣ Lawyer’s Office
Once your lawyer receives mortgage instructions, they will:
👉 Open your file
👉 Contact you for information
👉 Schedule your signing appointment
👉 Provide a final closing cost breakdown
Funds required for closing may include:
👉 Remaining down payment
👉 Legal fees
👉 Land transfer tax
👉 Adjustments from seller
👉 Any previously discussed fees
Our Mortgage Renewal is Less Than 1 Year Away
What is a mortgage renewal?
When you first obtained your mortgage, it was set for a term length — typically between 1 and 10 years.
At the end of that term, your mortgage matures, meaning the remaining balance is due to the lender.
Most lenders will allow you to renew the mortgage for another term at the interest rates available at that time. When this happens, your interest rate and monthly payment may change, depending on current market conditions.
However, many lenders assume borrowers will simply renew without exploring other options. In fact, about 80% of Canadians renew their mortgage with their current lender without shopping around.
Because of this, renewal offers are not always the most competitive rates available.
For our clients, we begin reviewing renewal options up to 8 months before the mortgage maturity date using our Rolling Renewal Strategy, allowing us to compare lenders and secure the most competitive terms available.
What is the Rolling Renewal Strategy?
The Rolling Renewal Strategy is an approach I use to help clients secure the lowest possible cost of borrowing when their mortgage renews.
Interest rates can change daily. At the same time, as you get closer to your mortgage maturity date, the penalty for breaking your mortgage early gradually decreases.
Using the Rolling Renewal Strategy, we begin reviewing your renewal about 240 days (8 months) before your mortgage matures.
Phase 1 – Early rate protection (240 days before maturity)
We apply with a competing lender and lock in an interest rate for up to 120 days. This protects you in case interest rates rise.
As we approach the end of that rate hold, we calculate whether it would save you money to switch early and pay the remaining penalty, or wait and continue monitoring rates.
Phase 2 – Final comparison (120 days before maturity)
If switching early does not save money, we submit a new application around 120 days before your maturity date to secure another rate hold.
At that point we compare:
👉 Your current lender’s renewal offer
👉 The new lender’s rate and terms
👉 Any costs associated with switching lenders
We then choose the option with the lowest overall borrowing cost.
Why this strategy works
By starting the renewal process early, we can:
👉 Protect you if interest rates increase
👉 Compare multiple lenders
👉 Ensure you are not simply accepting your lender’s first renewal offer
The goal is simple: make sure you pay the least amount of money for your mortgage.
What happens if we can't qualify for a new mortgage at renewal?
In most cases, you can still renew your mortgage with your current lender, as long as you're current on payments.
Most lenders allow borrowers to renew their mortgage automatically without re-verifying income, employment, or credit. This helps ensure homeowners can continue making their mortgage payments even if their financial situation has changed since the original mortgage was approved.
As your renewal approaches, we will still review your finances together to make sure the new mortgage payment remains affordable.
If qualifying with a new lender is not possible, we will discuss options such as:
👉 Renewing with your current lender
👉 Adjusting the mortgage term or payment structure
👉 Exploring other solutions that best fit your situation
Our goal is to ensure you have a clear plan well before your mortgage renewal date.
What happens if we don't sign the renewal on-time or find a new mortgage?
Most lenders will automatically renew your mortgage if no action is taken before the maturity date.
This automatic renewal is typically placed into a short-term open mortgage, often a 6-month or 1-year open term.
Open mortgage terms usually have higher interest rates, as they are designed to give you flexibility while encouraging you to select a new closed term.
Before this happens, your lender will usually send a renewal notice and may attempt to contact you by phone if you have not yet signed your renewal agreement.
If you do not respond or choose a renewal option, the automatic renewal will take effect, and your interest rate and payment will adjust accordingly.
The good news is that once the mortgage is on an open term, you can switch to a closed mortgage term with the lender at any time without penalty.
