The Mortgage Lender

It is essential you be pre-approved for a mortgage prior to commencing your housing search. With a pre-approved mortgage you know how much you can afford and you avoid delays in finalizing your financing when you find the right house to buy.

While the best place to start is your own bank or financial institution, there are other options available to you:

  • Bank, trust company, financial institution Arrange a meeting with those lenders individually. If you have a trusted relationship with your own financial advisor, see them first. Some institutions have mobile "Mortgage Specialists" who will arrange a convenient time and place to meet with you. They tend to work 7 days a week and take day or evening appointments to suit your time schedule. There is usually no additional cost to you.
  • Mortgage brokers Like insurance brokers, mortgage brokers shop the market and arrange the most favourable rate and terms for you. Like Mortgage Specialists, there is usually no application fee or set up cost for this service. Mortgage brokers also have contacts with private lenders should you require additional assistance. They can be quite skilled in putting together a mortgage financing package for you. There is a set up/application fee to arrange for private financing or for unusual financing circumstances.

 

  • Assuming an existing mortgage

    Some purchasers prefer to assume an existing mortgage on the property. This is only done when the rate of interest is lower or the terms more favourable than that which they can obtain out in the market. In a low interest rate environment, existing mortgages are very rarely assumed. Most financial institutions must approve you before they will allow the mortgage to be assumed.

    Once you have been pre-approved for a mortgage, you can confidently look for houses within your price range. When you find the home that fits your requirements, you must:

    1. Advise your lender you have purchased a home (usually conditional upon mortgage financing). Provide them with a copy of your offer to purchase. Provide them with a copy of the listing from the MLS system if they require it. Tell your lender how many days you have to arrange mortgage financing (7 - 14 days is quite standard) based on the financing condition in your offer.

    2. Ask your lender if there is any other information they require. When you were pre-approved, you would have provided the bulk of the information at that time.

    3. Provide your lender with the name of your lawyer.

    4. When everything has been approved, you will receive written confirmation of the approval. Written confirmation will take the form of an "approval certificate", "terms letter", or "approval letter" (three names that mean the same thing!). A copy of this can be faxed to the office of Christian, Paul and Fran.

    5. Christian, Paul and Fran's office will prepare a "Waiver" form for your signature to "waive" your condition on financing. The Waiver form is the means to communicate to the Vendor that you have satisfied yourself as to obtaining financing on the property. The Waiver is then immediately delivered by Christian, Paul and Fran to the Vendor.

    6. Christian, Paul and Fran are there for you on an ongoing basis to answer any of your questions on the process and given his bank manager background, Paul can competently answer questions on mortgage financing.