The mortgage process has a real sequence, and knowing what's coming next removes most of the anxiety. Here's exactly how it works, from first conversation to keys in hand.
Step 1: Check Your Credit and Gather Documents
Pull your credit report, address anything obviously wrong, and start gathering pay stubs, T4s or tax returns (two years for self-employed), bank statements, and identification. Having this ready before you apply speeds up everything downstream.
Step 2: Confirm Your Down Payment Source and Amount
Know exactly where your down payment is coming from, savings, RRSP Home Buyers' Plan, FHSA, or a gift, and have three months of statements showing the funds. See our down payment saving guide if you're still building toward it.
Step 3: Get Pre-Approved
A pre-approval calculates your real GDS/TDS ratios (see our debt-to-income ratio guide), applies the stress test, and typically locks a rate hold for 90-120 days. This tells you your real budget before you start touring homes, not an optimistic guess.
Step 4: House Hunt Within Your Actual Budget
Shop within your pre-approved range, factoring in Ontario's land transfer tax and closing costs (see our closing costs guide), which Ottawa buyers pay provincially, with no additional municipal land transfer tax the way Toronto buyers do.
Step 5: Formal Application Once You Have an Accepted Offer
Your file goes to full underwriting: document verification, an appraisal is ordered, and if you're putting down less than 20%, a mortgage default insurance application is submitted alongside your file.
Step 6: Commitment and Conditions
You'll receive a formal mortgage commitment listing any remaining conditions, sometimes a specific document, sometimes insurer approval, that need to be satisfied before final funding is confirmed.
Step 7: Lawyer and Closing
Your real estate lawyer handles the title search, mortgage registration, and fund transfers. This is also when title insurance is typically arranged, see our title insurance guide for what it actually covers.
Step 8: Funding and Possession
On closing day, your lender releases funds, your lawyer completes the transaction, and you get the keys.
Ready to Start Step One?
We'll walk you through every step above with your actual numbers, not general estimates. Talk to Sean to get started.