How Long Does it Take to Get Approved for a Mortgage in Canada?
If you're considering buying a house in Canada, you'll want to know how long it takes to get approved for a mortgage. Applying for a mortgage can be long and frustrating, but it's worth it in the end. In this article, we'll outline the steps you need to take to get approved for a mortgage and tell you exactly how long it takes. So whether you're looking to buy your first home or update your current residence, this is the article for you!
What is the mortgage approval process in Canada?
The mortgage approval process in Canada can vary depending on the location, but most banks and lenders will require you to submit various documents to prove your ability to afford the debt burden. These may include your credit score, credit history, household income and expenses, etc. You may also need to work with a mortgage broker to discuss your financial situation and ensure that you are qualified for the specific type of mortgage or loan product you're applying for.
Once all of these documents have been submitted and processed, your application will be reviewed by a mortgage underwriter explicitly assigned to underwriter a mortgage application. If everything is in order, you should receive a notification within 10-14 business days indicating whether or not your application has been approved. Remember that some applications may be rejected outright due to strict pre-approval guidelines set by particular lenders or insurance companies.
However, almost all applicants who follow the proper steps will eventually receive a Mortgage Approval Letter from their lender confirming their eligibility for a mortgage product.
What are the steps involved in getting approved for a mortgage in Canada?
You need to take a few steps to get approved for a mortgage in Canada. The first step is to determine how much is your desired loan amount and the estimated property value.
Once you have decided on your options, it's time to look at your credit score. An excellent way to improve your credit score is by paying off all of your debts (including any personal debt, student loans, and car loans) in full prior to applying for a mortgage. This will show lenders that you're responsible and capable of taking care of yourself financially.
After improving your credit score, it's time to apply for a mortgage with the help of a mortgage broker in Vaughan. Lenders usually require that borrowers provide documentation such as tax returns, employment verification, and more before approving them for a loan. Once everything has been submitted correctly and successfully, congratulations! You've completed a critical first step towards becoming homeowner in Canada!
How long does it take after submitting your application for a mortgage to be processed?
It can take up to two weeks for your mortgage application to be processed, but this time frame is always subject to change. Generally, the sooner you submit your application and with all supporting documents sent upfront, the faster it will to reach a decision. Keep in mind that several steps are involved in getting a mortgage - from gathering required documentation to submitting an online application - so make sure you do everything possible to speed things up.
Can you get information about the status of your application?
Yes, you can get information about the status of your application. You can ask your mortgage broker to keep close contact with the underwriter regarding the status of your mortgage application.
Is there anything I need to do while waiting for my application to be processed?
There is no one-size-fits-all answer to this question, as the waiting time for an application to be processed will vary depending on the specific situation. However, some things you can do to ease the wait include:
Stay patient - Application processing times can take several weeks or longer, so it's important to maintain patience. Don't call or email the admissions office daily asking about your status; relax and wait until you hear from them.
Do not change job - If you are considering to change your employment, try to stay with your current employer until after you have received a decision from the mortgage underwriter. Changing employer will affect your application and require it to start from the beginning.
Do not incur additional debt - Make sure to keep your household income and expenses approximately the same. Do not incur large personal debt such as a new car loan, student debt, etc. This additional debt may tip the balance of the debt-to-income ratio that put the mortgage application in jeopardy of getting declined.
Factors that affect the time it takes to get approved for a mortgage in Canada
The process of getting approved for a mortgage in Canada can be lengthy and challenging, but there are several factors that can affect the time it takes.
Some of the most important factors to consider include your credit score, income, debt levels, and whether you live in an urban or rural area. Your lender will also consider your current housing status (e.g., is your home already financed?) and any recent changes, such as a new job or relocation.
If you're serious about obtaining a mortgage in Canada, make sure to work with a licensed mortgage broker in Vaughan and submit everything required by the lender promptly so that processing times can be kept to a minimum.
Tips to speed up the mortgage approval process in Canada
The mortgage approval process can be long and complicated if you're looking to buy a home in Canada. Here are some tips to help speed up the process:
Do your due diligence. Finding out your desired loan amount, and supporting paperwork for your household income and expenses will help to expedite the entire mortgage application process.
Have a mortgage broker to prepare your file for submission. A qualified mortgage broker in your local area in Vaughan will have access to the various lenders and can prepare your file quickly and efficiently.
Be prepared to answer questions thoroughly. Your lender may ask about everything from your current debt load to how much you plan to spend each month on housing expenses. Make sure you have answers ready!
Don't lie to lenders in your mortgage application - make sure to provide truthful information in your mortgage application, else you may be liable for mortgage fraud. Above all else, keep calm and carry on!
If you've been looking for a reliable mortgage broker, then we can help. Our team of licensed mortgage agents and mortgage brokers will be with you all the way to give the best advice on how long it takes to get approved for the mortgage that suits your needs.