Our clients knowing what happens next is VERY IMPORTANT to us.  Whether you are purchasing a new home or refinancing or renewing an existing home, knowing what the next steps are crucial in providing and excellent mortgage experience.

Our Commitment To Provide You With An Excellent Experience:

1. FAQ – Frequently Asked Questions & Mortgage Questionnaire – Our FAQ page contains all of the commonly asked questions that clients have about using a mortgage broker.  Our Mortgage Questionnaire is made up of less than 20 questions to help us get to know you better, determine mortgage suitability, and help identify any hurdles along the way.
2. Next Steps & What To Expect – Our Next Steps Page outlines our process on what you can expect next and your role and responsibility in the mortgage application process.  We also ask that you download our mobile phone app called my Mortgage Tool Box so that you can have access to the latest rates and our award-winning mortgage calculators.
3. The Mortgage Application – Our mortgage application is designed to take about 10-15 minutes to complete.

Mortgage Process Flowchart

1. Start
   • The process begins when a borrower expresses interest in obtaining a mortgage loan.
2. Introductory E-mail & Process
   • The borrowers will provide their contact information (Full Name, Phone Number, and E-mail address). We will then send an Introductory and process E-mail outlining our application process to the borrowers.
   • DLC Mainstream Mortgages (Peter, Derek, and Colten) are always available by phone or text at 431.482.2187 should the borrowers have any questions.
3. FAQ, Mortgage Questionnaire, Next Steps, and Formal Mortgage Application
   • The borrowers will complete the 3 steps of our application process
   • The borrowers can watch our YouTube playlist for further clarification and information.
   • The mortgage application will automatically request some documents through the secure portal from the borrower depending on how they completed the application.
4. Application Review & Credit Check
   • DLC Mainstream Mortgage (Usually Peter and Colten) will review the submitted application
   • We will check the borrower’s credit bureau report. If there are any issues or challenges, we will do our best to repair them or offer recommendations.
   • Request any additional mortgage documents that we feel will make the mortgage process smoother or help to achieve a lower rate, better mortgage terms or even a higher pre-approval amount.
   • We will likely have questions and offer to do a discovery call or Zoom meeting at this time.
5. Pre-Approval (if purchasing)
   • Where appropriate, we will submit the Borrower’s application for a pre-approval.
   • At this time we may decide to lock in a rate with a lender to protect the borrower from any rate increases.
   • We will E-mail the pre-approval details to our clients.
   • We prefer to write pre-approval letters for specific properties before our clients write an offer.  This will allow us to view the property, the property disclosure if available, confirm numbers, mortgage terms, and time frames.  Most importantly it will give us the opportunity to update any of the borrower’s documents that may have stale-dated.
   • If the borrower is not working with a REALTOR, we would be happy to recommend our favourites.
6. Property Selection (if purchasing)
   • The borrower may work with a REALTOR to find a property to purchase.
   • The REALTOR or borrower’s representative will enter into an offer to purchase (purchase and sale agreement) and agree upon the price of the property and the terms of the agreement.  Remember that we will write a tailored and custom pre-approval letter for the specific property.
7. Appraisal and Inspection
   • The lender may order an appraisal to determine the property’s value. For Insured Files (Less than 20% down) the appraisal will be done at no charge to the borrower.  For conventional files (20% down or more) the cost of the appraisal is the responsibility of the borrower (usually $300-450).
   • In many cases, the appraisal is either auto-appraised or waived.
   • If appropriate and agreed upon in the contract, the borrower arranges and pays for a home inspection.
8. Underwriting
   • The lender reviews DLC Mainstream’s credit application, rationale, all borrower documentation, and property information.
   • The underwriter assesses the risk and decides on loan approval.
   • For insured files, the underwriter will forward the application along with their recommendation to one of the three mortgage default insurers (CMHC, Sagen, Canada Guarantee).
9. Conditional Approval
   • If approved, the lender may issue a conditional approval with specific conditions the borrower must meet.
   • The approval document is called the Mortgage Commitment and it will outline the mortgage rate, term, payment, and other important information about the mortgage.
   • The conditions of a commitment can be either questions the underwriter has about the property or the application or a request for further documentation.
10. Documentation Submission
    • The borrower(s) will upload any additional required documentation to their portal to satisfy conditions.
    • While DLC Mainstream Mortgage strives to get all of the documentation required upfront, there are times when it isn’t possible.
    • The Borrower must provide this information as quickly as possible.
11. Final Approval
    • The lender reviews the updated documentation and issues a final approval.
    • We refer to this as “Broker Complete” or “Clear To Close”
    • It is important at this stage to review our “What NOT To Do After Your Mortgage Is Approved” because it is possible to have the approval revoked.
      What Not To Do After Your Mortgage Is Approved – https://peterpaley.com/what-not-to-do-after-your-mortgage-is-approved/
    • After the final approval is issued, the borrower will need to get homeowners insurance in the case of a purchase or contact their existing insurance provider to advise them of the new lender in the case of a refinance or transfer.
12. Loan Closing & Lawyer
    • The borrower and seller sign the final contractual documents.
    • In most cases, the Borrower will select a lawyer or solicitor to finalize all of the legal documents.  In the case of refinances or renewal, we are sometimes able to use the services of a title company such as FCT or FNF which can be a little more economical and convenient for a Borrower.
    • The down payment and closing costs will be managed and handled by the lawyer or title company.
    • If the borrower is applying for a Property Tax Installment Plan (TIPPS) this can be applied for directly at the lawyer’s office or directly through the municipality.
13. Funding
    • The lender funds the loan, and the funds are transferred to the lawyer.
    • The lender will usually reach out to the borrower with a welcome package that will outline their mortgage, their online portal, and contact information.
    • Your lawyer will provide instructions and advise when the Borrower can pick up the keys.
    • On possession day in the case of a purchase, it is important to walk through the property to identify any defects or anomalies and to also do a final meter reading for all of the utilities.
14. Loan Servicing
    • The borrower begins making mortgage payments to the lender at the payment frequency decided upon

At any time in the process please don’t hesitate to reach out by phone or text to 431.482.2187