Once the offer has been accepted I request the following from the client OR realtor:

• Copy of the mls

• Contract of purchase

• Property disclosure statement

• Strata minutes/Form B Information Certificate (if applicable).
   

If the property disclosure statement confirms "yes" to the question "Have you paid any special assessment(s) in the past 5 years?" the lender will always require an explanation.  Documentation to support the reason will be required if the amount is considerable and/or especially if there is an envelope/rain screen issue.   The lender wants to make there are no serious potential future issues with the building.

Mortgage approval process

• Submit the mortgage application electronically to the lender. The lenders can be very busy so it is very important to submit the mortgage application at the earliest opportunity.

• At minimum we need the Mls listing and contract of purchase to submit the mortgage application to the lender.

• Lender will issues a commitment typically 1 to 2 days after submission outlining what documents/conditions are required to fulfill the mortgage approval.  If volumes are high with a specific lender that could delay the process 1 to 2 days so it is always a good idea to have client confirm with the broker (if possible) just before offer is being made.

• For higher mortgage amounts (ie $700,000) some lenders require it to be referred to a credit department to sign off.  If the credit department is in Toronto then it can potentially delay the approval process slightly.

• Broker then emails/uploads the required documents (down payment, closing costs, employment confirmation, etc.) and underwriter will review accordingly.  

• Broker then orders an appraisal which is typically required if the down payment is 20% or higher.  A couple of lenders do not require an appraisal if the value is supported by their internal valuation system.  

• If the down payment is less than 20% then the value of the property is determined by the insurer (ie cmhc) via automated valuation system therefore a physical appraisal is not required.

• Lender will review the documents/appraisal and issue a full approval once all the conditions have been satisfied.  
                                                                                                                                              

Removal of subjects
If all subject conditions have been satisfied (ie financing has been approved, home inspection goes well, strata minutes are good, etc) the buyer will sign the subject removal addendum on the subject removal date and provide the deposit as specified in the contract.  The deposit forms part of the down payment and is the money paid up front by a purchaser as security for completing the transaction.  The deposit amount is determined by the parties involved to the transaction and can represent 5% to 10% of the purchase price and clients must have access to this amount on the subject removal date or shortly thereafter as stipulated in the contract.

The deposit is determined when the contract of purchase is written up and your realtor will be in the best position to recommend the deposit amount.  The important thing is that you have access to the deposit money and if the deposit is being borrowed (ie from family, line of credit, credit card, etc) or from RRSP’s it is imperative that you notify the mortgage broker at the pre-approval stage.

I will meet with the clients to sign the mortgage documents, review the mortgage product and explain what happens between subject removal and completion.

Choose a lawyer or notary
The purchaser will have to designate a lawyer or notary at least a few weeks before the completion date.  The lender and the realtor will send their instructions to the lawyer and typically 1 to 2 weeks before the completion date the lawyer will call the clients to arrange a time to sign documents on or just before the completion date.  The lawyer will normally request 2 forms of ID, a void cheque where you would like your mortgage payments withdrawn from, and will request a certified cheque or bank draft for the rest of the down payment and closing costs.  If the client has purchased a house (not a condo or townhouse) they will have to arrange house insurance prior to completion and provide confirmation to the lawyer.

Completion
The date on which the Seller is entitled to the net proceeds of the sale and the Buyer is entitled to the transfer of the title. Real Estate commissions and legal fees are normally paid out at this time to the transfer of the title