When arranging a mortgage, there are several common expenses to plan for beyond the purchase price of the home. These may include legal fees, property appraisals, home inspections, and costs related to setting up utilities.

Because every situation is different, the exact costs can vary depending on the property and financing details. For a clear breakdown based on your specific needs, review our cost information or connect with us directly to walk through your personalized mortgage plan.

A mortgage is considered insured when the buyer provides less than 20 percent of the home’s purchase price as a down payment. Canadian lending rules limit lenders to financing up to 80 percent of a property’s value unless mortgage default insurance is in place. This insurance is provided through organizations such as CMHC, Canada Guaranty, or Sagen and exists to protect the lender if the mortgage goes into default.

When insurance is required, a premium is applied and typically added to the total mortgage amount rather than paid upfront.

An uninsured mortgage applies when a buyer puts down 20 percent or more. In these cases, mortgage default insurance is usually not required and no insurance premium is added. That said, there are situations where a lender may still require insurance based on factors like the property’s location, type, or risk profile.

Understanding how insured and uninsured mortgages work can help you choose the option that best fits your financial position and long term plans.

A mortgage pre-approval plays a key role in the home buying process because it gives you a clear understanding of what you can afford before you start looking at properties. Knowing your approved price range upfront helps you shop with confidence and prevents you from falling in love with a home that sits outside your budget.

Pre-approval goes beyond estimating a monthly mortgage payment. It factors in the full cost of homeownership, including property taxes, utilities, and other ongoing expenses that can catch first-time buyers off guard. Reviewing these numbers early allows you to make informed decisions based on what fits comfortably within your financial lifestyle.

While online calculators are a helpful starting point, they do not reflect a lender’s full approval criteria. Working with an Indi Mortgage professional ensures your pre-approval is based on real lending guidelines, not assumptions. If any concerns arise, addressing them early gives you time to correct issues before you begin house hunting.

And if you are not quite ready to qualify, we can help you create a clear plan to strengthen your position so you are prepared for a future purchase.

A mortgage pre-approval confirms that you, as the borrower, meet the basic lending requirements. At this stage, your mortgage broker has reviewed key details such as your income, credit profile, and available down payment. This helps establish how much you may be eligible to borrow.

That said, a pre-approval does not automatically approve the property you plan to purchase. The home itself must still be reviewed and accepted by the lender and, if applicable, the mortgage insurer. Because of this, it is essential to include a financing condition when submitting an offer. Your real estate professional can guide you through this step to ensure you are protected.

It is also important to understand that your pre-approval remains valid only if your financial situation stays the same. Changes such as a new job, additional debt, or other financial shifts can impact your approval. If anything changes after your pre-approval is issued, reach out to your mortgage broker right away so your file can be reassessed.

Once you’ve found a property you want to purchase, you and your real estate agent will prepare an offer. After negotiations are finalized, the accepted offer and property details are sent to your mortgage broker so they can begin the final approval process with the lender.

Your mortgage broker submits the application for full lender and, if required, insurer approval. When approval is granted, the lender issues a formal mortgage commitment outlining the terms, conditions, and any outstanding documents still needed. Your broker will review everything with you and let you know exactly what is required to move forward.

After all requested documents are provided and accepted, your financing becomes firm. At this point, you can safely remove the financing condition from your purchase agreement. Once any remaining conditions, such as a home inspection, are also satisfied, the home is officially yours.

The final step involves meeting with your lawyer to complete the legal paperwork, typically about ten days before your possession date. During this appointment, you’ll need to provide the remaining down payment and closing costs, usually in the form of a certified cheque or bank draft. After the legal work is completed, all that’s left is to wait for the agreed possession date and receive the keys to your new home.