In this blog post we’re going to answer a very common question; how long does it take to get approved for a mortgage in Canada?
Alex Lavender has been one of the top rated mortgage brokers for years. When it comes to getting a mortgage approval they can be done relatively fast, sometimes within 24hrs. However this process can take up to 2-10 business days.
How long it takes to get your mortgage approved depends on how quickly you can provide the documents required for the lender. It also depends on how long the lenders take to review your application & documents and get back to you. If the property does not pass though the automated valuation system an appraisal may be required which can cause serious delays to the process
Typically you can expect to get a mortgage approval within 1-5 business days.
How to speed up your mortgage approval
You can take a few easy steps to speed up your mortgage approval.
3 Steps to speed up your mortgage approval
Step 1: Bring income documents
Bring a recent paystub and your last two years of T4’s to your mortgage broker. this will help the lenders establish a reliable income for you. If you are self-employed ensure you bring your last two years of T1 Generals and Notice of Assessments.
Step 2: Know your total assets & debts
Prepare a list of all of your assets and the approximate value of them. You can refer to online banking, most recent financial statements, or the internet to determine values of physical assets such as vehicles.
Create a list of your liabilities, including the interest rates on them, and when they will be paid in full if they are for a fixed loan or mortgage.
Step 3: Have your purchase documents ready
Once you have an accepted offer your realtor will provide you with a signed purchase and sale agreement for your home. This tells your broker everything about the property you are purchasing and is crucial for submitting this to a lender for the full approval. Ensure you have a copy of this available.
- When you reach out to your mortgage broker they will be able to provide you with a specific list of documentation required for your exact situation.
By following these 3 easy steps, you’ll greatly increase the speed that lenders and mortgage brokers can provide you with a mortgage approval. You can even get a quick approval if you have a bad credit score.
What we recommend; pre-approval
Alex Lavender has been one of the best rated mortgage brokers for years. If you’re considering getting a mortgage approval we highly recommend getting a pre-approval.
Mortgage pre-approvals last for 120 days, giving you plenty of time to find your dream home. It’s a great way to know exactly how much you can qualify for and to ensure that this amount aligns with your personal budget.