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Most people start by looking at houses. That is the third step, not the first. Here is how a purchase actually runs from the mortgage side — what happens when, what you will need, and where files come unstuck.
Stephen Green, Mortgage BrokerWaterloo Region · serving all of Ontario
Nearly 30 years in Canadian financial services
General information about the purchase process. Everything is subject to full qualification, lender approval and final terms.
The mechanics are the same. What you need to know is not.
Down payment rules, the FHSA and Home Buyers’ Plan, land transfer tax rebates and the regional assistance programs nobody advertises. First Home Hub →
Two transactions at once, using the equity you already have, and bridge financing when the dates do not line up. Next Home Hub →
Different down payment rules, different qualification and different lenders. Worth a conversation before you make an offer rather than after.
What you are trying to do, when, and what you can comfortably carry — which is a different number from what you can qualify for. No credit check, no cost, no obligation.
Income, down payment history, identification. A lender reviews them and gives you a real ceiling. This is the step people skip and then regret.
With a number you can rely on and a written pre-approval behind you, which is also what makes an offer credible to a seller.
Financing and inspection conditions are your protection. We work to the deadline in your offer, so tell us the moment it is accepted — not the day before it expires.
The lender values the property and reviews the full file. Most last-minute problems appear here, and most of them trace back to documentation.
Instructions go to your lawyer, funds move on closing day, and you take possession. We stay involved after closing — renewal planning starts long before the letter arrives.
On top of your down payment. The single most common surprise in a first purchase.
| Cost | Roughly | Notes |
|---|---|---|
| Land transfer tax | The largest single item | Ontario, plus a second municipal one in Toronto. First-time buyers can claim a refund. |
| Legal fees and disbursements | Typically $1,500–$2,500 | Your lawyer handles title, registration and the lender’s instructions. |
| Title insurance | A few hundred dollars | Usually arranged by your lawyer; most lenders require it. |
| Home inspection | $400–$700 | Optional, and money well spent on anything not brand new. |
| Appraisal | $300–$500 | Often covered by the lender on insured files, charged to you on others. |
| Adjustments | Varies | Reimbursing the seller for property tax or fuel they have prepaid. |
Illustrative ranges for Ontario, not quotes. Your lawyer and the specific property determine the actual figures. The purchase calculator works out land transfer tax and the first-time rebates properly.
Files stall on paperwork far more often than on qualification. Gathering this early is the single most useful thing you can do.
Government photo identification for everyone going on the mortgage.
Recent pay stubs and a job letter if you are employed. Two years of returns and notices of assessment if you are self-employed or commissioned.
Ninety days of statements showing where the money came from, plus a signed gift letter if family is helping. If a parent is helping you qualify rather than helping with the down payment, see co-signing versus guaranteeing.
The purchase agreement and the listing, once you have an accepted offer. Condo files also need the status certificate.
Before closing, your insurer needs to name your lender on the policy — the mortgagee or loss payee clause — and send confirmation to the right address. Getting it wrong is one of the most common last-minute closing delays. Here are the mailing addresses lenders commonly ask for.
| Lender | Address to give your insurance company |
|---|---|
| TD | Toronto-Dominion Bank, 4720 Tahoe Blvd, Building 1, Mississauga, ON L4W 5P2 |
| Scotiabank | 4 King Street West, 2nd Floor, Toronto, ON M5H 1B6 |
| BMO Bank of Montreal | 2465 Argentia Blvd, 8th Floor, Mississauga, ON L5N 0B4 |
| B2B Bank | 600–199 Bay Street, 279 STN Commerce Court, Toronto, ON M5L 0A2 |
| CMLS Financial | 18 York Street, Suite 1500, Toronto, ON M5J 2T8 |
| Equitable Bank | 30 St. Clair Avenue West, Suite 700, Toronto, ON M4V 3A1 |
| First National | Computershare Trust Company of Canada c/o First National Financial, 16 York Street, Suite 1900, Toronto, ON M5J 0E6 |
| Manulife Bank of Canada | 500 King Street North, Suite 500-MA, P.O. Box 1602 STN Waterloo, Waterloo, ON N2J 4C6 |
| Your Neighbourhood Credit Union | 38 Executive Place, Kitchener, ON N2P 2N4 |
| Strive Capital Corporation | 16 York Street, Suite 1900, Toronto, ON M5J 0E6 |
| Home Equity Bank | South Tower, 200 Bay Street, Suite 3500, Toronto, ON M5J 2J1 |
| NPX — a division of Merix | c/o Paradigm Quest, P.O. Box 351, Station C, Kitchener, ON N2G 3Y9 |
Provided as a convenience for clients and their insurance brokers. Lenders move offices and change their servicing arrangements, so confirm the address on your own commitment letter or with your lawyer before the policy is issued. Some lenders also require a specific mortgagee wording or a reference number alongside the address.
Common in competitive markets and the riskiest thing a buyer does. Waiving it means you are committed even if the lender later says no or the appraisal comes in short.
The lender lends against value, not against what you agreed to pay. The gap comes out of your own pocket, in cash, before closing.
A new car loan, a job change, a credit card opened at a furniture store. Approvals are conditional on your circumstances staying as presented. Change nothing until the keys are in your hand.
Based in Waterloo Region, working throughout southwestern Ontario — and able to help buyers anywhere in the province.
Earlier than most people do. The useful conversation happens before you start viewing — while there is still time to fix documentation, choose the right account to save into, and find out your real number. There is no cost and no credit check to that first conversation.
A pre-qualification is a rough estimate based on what you say. A pre-approval involves a lender reviewing documents and a credit check, and it holds pricing for a period. Neither is a final approval — that comes after underwriting reviews the specific property.
No. It is a lender's view based on what they have seen so far. Full approval depends on your documents standing up, your circumstances not changing, and the lender being satisfied with the property itself. Plenty of files pass the borrower and fail on the house.
Land transfer tax, legal fees, title insurance, a home inspection, possibly an appraisal, and adjustments for prepaid property tax. Budget roughly 1.5% to 4% of the purchase price, at the higher end in Toronto because of the municipal land transfer tax.
Almost always, unless you fully understand what you are giving up. Waiving financing means you are committed even if the lender later declines or the appraisal comes in short. In competitive markets people waive it routinely, and it is the single riskiest thing a buyer does.
A lender-ordered opinion of the property's value, used to confirm they are not lending against an inflated price. It is often covered by the lender on insured files and charged to you on others. If it comes in below the purchase price, you make up the difference in cash.
Identification, income confirmation (pay stubs and an employment letter, or two years of returns if self-employed), 90 days of down payment history, a gift letter if family is helping, and the purchase agreement and listing once you have one.
Yes. It takes more paperwork — usually two years of tax returns and notices of assessment, sometimes business financials — and some lenders are considerably better at these files than others. That is exactly the kind of thing having options is for.
Pre-approval can be days. From an accepted offer to closing is commonly 30 to 90 days depending on what you agree. The part that takes longest is almost always gathering documents, which is why starting early matters.
No. Your bank is one lender with one set of products. A broker can take the same application to many lenders, which matters most when your situation is not perfectly standard.
Twenty minutes now saves a fortnight later. Bring what you know about your income and savings and we will work out your real number, what is missing, and what to do first.