The Pre-Approved Process
Obtaining a pre-approval will make the home buying process less stressful
*If you are a First time home buyer you are eligible for Government incentives. First Time Home Buyer Incentives
*Homebuyers with a pre-approved mortgage have the upper hand when they put an offer on the table. Having pre-approval demonstrates that you’re serious about purchasing a home.
A potential mortgage lender looks at your finances to find out the maximum amount they will lend you and what interest rate they will charge you.
With a pre-approval, you can:
A potential lender will look at your credit report before approving you for a mortgage.
- know the maximum amount of a mortgage you could qualify for
- estimate your mortgage payments
- lock in an interest rate for 60 to 120 days, depending on the lender
A lender will look at your current assets, your income and your current level of debt.
You’ll need to provide your lender or mortgage broker with the following:
- proof of employment
- proof you can pay for the down payment and closing costs
- information about your other assets, such as a car, cottage or boat
- information about your debts or financial obligations
For proof of employment, your lender or mortgage broker may ask you to provide:
- proof of current salary or hourly pay rate (for example, a current pay stub and a letter from your employer)
- your position and length of time with the organization
- Notices of Assessment from the Canada Revenue Agency for the past two years, if you're self-employed
Your debts or financial obligations may include:
CIBC Mortgage Calculators
- credit card balances and limits, including those on store credit cards
- child or spousal support amounts
- car loans or leases
- lines of credit
- student loans
- other loans
Submit your Application for Approval
Once your offer has been accepted, your lender will then submit your mortgage application for approval. This can take 7-14 days. Also, your lender will discuss all the terms and conditions of the mortgage, such as:
- the amount
- the amortization period
- the term
- how often you will make payments
- the interest rate
- if it is an open or closed mortgage
Once your Mortgage is approved, you can firm you your offer!
Consider your options and choose a mortgage that is right for you
Make sure you work with a qualified and knowledgeable Lender that provides you with a mortgage that is right for you
We highly recommend Lise Morton, a Mortgage Specialist at CIBC. She can offer extremely competitive rates and terms. We have yet to find someone who delivers better service than Lise.
Lise Morton Mortgage Specialist CIBC