How to Get Approved for a Mortgage
Getting a mortgage in Ontario isn’t always easy—especially with the housing market hitting all-time highs. Fortunately, by understanding the qualification process and working with experienced professionals, you can navigate the home financing process smoothly and increase your chances of a successful outcome.
Let’s break down what you need to know to get approved for a mortgage in Ontario..
Understanding the Mortgage Approval Process in Ontario
The mortgage approval timeline typically ranges from a couple of days to over a month. On average, most applications are approved within 2 to 10 days.
The process begins by connecting with a mortgage broker or visiting a bank. Working with a broker is often the better choice—they can give you access to multiple lenders, allowing you to compare rates and find the best fit.
Here’s a general flow of the mortgage process:
- Contact a mortgage broker or lender
- Get pre-approved for a mortgage
- Search for a home within your budget
- Submit your offer and complete the formal application
- Receive mortgage approval and transfer funds on closing day
Key Requirements for a Mortgage in Ontario
To qualify for a mortgage in Ontario, you’ll need to meet several important criteria:
- Credit Score: A score of 650–680 or higher is generally required, along with a strong history of bill payments.
- Employment & Income: Lenders want to see stable employment. Be prepared to provide a letter of employment and recent pay stubs.
- Total Debt Service Ratio (TDS): Your total monthly debt payments should not exceed 44% of your gross monthly income.
- Down Payment: Depending on the home’s price, down payments range from 5% to 20%. If your down payment is below 20%, mortgage insurance (from CMHC, Sagen or Canada Guarantee) is required.
Why Get a Mortgage Pre-Approval?
A mortgage pre-approval isn’t mandatory—but it’s incredibly helpful. It provides a realistic picture of your budget and helps you stand out as a serious buyer to sellers and realtors.
You can easily start a pre-approval application online here. You’ll need to supply documents such as ID, proof of income, and down payment verification.
Tips to Increase Your Mortgage Approval Chances
Preparing in advance can significantly increase your chances of getting approved for a mortgage. Here’s how:
- Boost Your Credit Score: Pay bills on time, keep your credit utilization low, and avoid new credit applications before applying.
- Pay Down Debts: Lowering your debt improves your debt-to-income ratio and strengthens your financial profile.
- Save for a Larger Down Payment: A bigger down payment lowers your loan amount and shows financial discipline.
- Maintain Job Stability: Staying in the same job or industry for at least two years demonstrates income reliability to lenders.
Common Reasons for Mortgage Declines — and How to Avoid Them
Mortgage denials often stem from poor credit, high debt, or inadequate income. Even if you qualify on paper, missing or incomplete documents can lead to rejection.
That’s why working with a mortgage professional is essential—they ensure every detail is in place to support your application.
Final Thoughts
Getting approved for a mortgage in Ontario may seem complex—but it’s completely manageable with the right preparation and support. We’re here to help you every step of the way.
Ready to start your mortgage journey? Contact us today for expert advice, personalized service, and your free Homebuyer’s Guide.
