Mortgage Approval Process: Step-by-Step Timeline

The mortgage approval process can seem complex, especially for first-time buyers — but breaking it down into clear, manageable steps makes it much easier to navigate.
Whether you're buying in Ontario, Barrie, Bradford, Pickering, or anywhere in the Greater Toronto Area, understanding the mortgage timeline gives you a major advantage when purchasing your home.

Here’s your complete step-by-step guide.

Step 1: Get Pre-Approved

Before you even start house hunting, your first move should be getting pre-approved for a mortgage.

Pre-Approval Benefits:

• Gives you a clear budget
• Locks in an interest rate for 90–120 days
• Shows sellers you're a serious buyer
• Helps you act fast in competitive markets

Documents you’ll need for pre-approval:

• Proof of income (pay stubs, tax returns)
• Bank statements showing savings and debts
• Employment verification letter
• Government-issued ID
• Consent for a credit check

Tip:
Work with a mortgage agent to get pre-approved — they can often secure better rates and a faster turnaround than banks.

Timeline:
✅ Pre-Approval usually takes 1–5 business days once all documents are submitted.

Step 2: Start House Hunting

With a solid pre-approval in hand, it’s time to start searching for homes within your price range.

Smart tips for house hunting:

• Stick closely to your budget (avoid maxing out)
• Factor in property taxes and utility costs
• Visit multiple properties to compare options
• Always get a professional home inspection later before finalizing

Tip:
Partner with an experienced real estate agent familiar with your local market — they can help you find hidden gems and negotiate strongly on your behalf.

Timeline:
✅ House hunting can take anywhere from a few weeks to several months, depending on market conditions and your flexibility.

Step 3: Make an Offer

Once you find the right property, it’s time to submit a formal purchase offer.

Key elements in your offer:

• Purchase price
• Deposit amount
• Closing date
• Conditions (such as financing, home inspection, or sale of your current home)

Why include a financing condition?
Even with a pre-approval, lenders must approve the specific property you are buying.
A financing condition protects your deposit if the final mortgage doesn’t go through.

Tip:
Offers with financing conditions may be less competitive — discuss strategy with your real estate agent depending on the situation.

Step 4: Finalize Your Mortgage Application

After your offer is accepted, you must finalize your mortgage approval.

What happens during finalization:

• Update your mortgage application with the new property details
• Submit any updated income, employment, or asset documents if requested
• Provide a copy of the purchase agreement to your mortgage agent or lender

This step ensures the lender officially signs off on both you and the property.

Step 5: Property Appraisal

The lender typically orders an independent appraisal to verify the fair market value of the property.

Why it matters:

• If the appraisal comes in lower than your offer price, you might have to renegotiate or increase your down payment.
• If the appraisal meets or exceeds the offer price, the process moves forward smoothly.

Tip:
Appraisal costs usually range from $300–$500, paid by the buyer.

Step 6: Underwriting

The underwriting stage is where the lender's mortgage team carefully reviews every detail:

• Confirms your income and employment
• Verifies the down payment source (bank account, RRSP, gift letter)
• Reviews appraisal results
• Ensures all lender conditions are satisfied

Underwriting is where most last-minute delays happen — so working with a mortgage agent who prepares your file perfectly from the start can make this painless.

Step 7: Mortgage Commitment Issued

If everything checks out, the lender will issue a Mortgage Commitment Letter.
This document outlines:

• The approved mortgage amount
• The interest rate and term
• Payment schedule
• Any final conditions (like providing updated bank statements before closing)

Once you accept and sign the commitment, your financing is secured!

Step 8: Closing Preparation

In the weeks leading up to closing day, there are a few final steps:

• Hire a real estate lawyer to handle title searches, document preparation, and money transfers.
• Arrange for home insurance. Lenders require proof before funding the mortgage.
• Transfer your down payment funds and closing costs into your lawyer’s trust account in advance.

Tip:
Budget around 1.5%–2.5% of the purchase price for closing costs (legal fees, land transfer tax, title insurance).

Step 9: Closing Day

On closing day, the final paperwork is signed, the down payment and mortgage funds are transferred, and you officially become a homeowner!

✅ You’ll receive the keys once your lawyer confirms the transaction is complete.

Tip:
Avoid scheduling your move early on closing day — delays can happen until the title transfer is officially registered.

Timeline Summary

• Pre-Approval: 1–5 business days
• House Hunting: Varies (few weeks to several months)
• Offer to Close: Typically 30–90 days, depending on the closing date negotiated

Tips to Speed Up the Mortgage Process

• Be highly responsive to document requests from your agent or lender.
• Avoid major financial changes (like quitting your job or taking out new loans).
• Provide full, clean documentation upfront.
• Work with a mortgage agent who can troubleshoot and advocate for you quickly.

The smoother your paperwork and communication, the faster your mortgage approval will happen.

Final Thoughts

Understanding the mortgage approval timeline gives you a huge advantage as a home buyer.
By preparing properly, choosing the right professionals, and moving through each step strategically, you’ll avoid surprises and secure your new home with confidence.

📞 Ready to get started with a smooth, stress-free mortgage approval? Call Garry Sidhu today at 437-961-0004 and let’s unlock your homeownership goals!