🧠Step-by-Step Guide to Getting a Mortgage in Canada (2025 Edition)
Buying a home is one of the biggest financial decisions you’ll ever make — and securing the right mortgage can make all the difference. Whether you’re a first-time buyer or planning to refinance, understanding each step of the process helps you save time, money, and stress.
Here’s your complete 2025 step-by-step guide to getting a mortgage in Canada.
1. Check Your Credit Score
Your credit score is one of the first things lenders review when assessing your mortgage eligibility.
A score above 680 is considered strong.
Scores between 600–679 may still qualify with higher down payments or special programs.
To prepare:
✅ Pay off small debts.
✅ Avoid opening new credit accounts.
✅ Check your credit report for errors before applying.
2. Determine Your Budget & Affordability
Before contacting a lender, know how much you can realistically afford.
Use a mortgage affordability calculator to estimate your maximum purchase price based on:
Income and debts
Down payment amount
Current interest rates
Property taxes and utilities
Tip: Aim to keep your total housing costs under 39% of your gross monthly income.
3. Get Mortgage Pre-Approval
Pre-approval helps you:
Lock in a rate (usually for 90–120 days).
Show sellers you’re a serious buyer.
Identify your borrowing limit early.
You can get pre-approved through banks, credit unions, or mortgage brokers like RateShop.ca, which compares offers from multiple lenders to find the lowest possible rate.
4. Compare Mortgage Types
Choosing the right mortgage type is key to long-term savings:
Fixed-Rate Mortgage: Stable payments and protection from rate increases.
Variable-Rate Mortgage: Fluctuates with the prime rate, offering potential savings.
Open Mortgage: Allows you to pay off your loan early with no penalty.
Closed Mortgage: Lower rate but with restrictions on extra payments.
A broker can help you decide which is best based on your goals and risk tolerance.
5. Gather Required Documents
Prepare these documents in advance to speed up approval:
Proof of income (pay stubs, T4s, NOAs)
Employment verification letter
Government ID
Recent bank statements
Details of assets and debts
Having these ready helps lenders process your application faster and improves your chances of approval.
6. Submit Your Mortgage Application
Once you’ve chosen your lender and mortgage type, it’s time to apply formally. Your broker or loan officer will guide you through the submission, appraisal, and approval stages.
If approved, you’ll receive a mortgage commitment letter outlining your terms, rate, and payment schedule.
7. Close the Deal
Before closing, your lawyer will review all documents, verify funds, and finalize ownership transfer. Once complete — congratulations, you’re officially a homeowner! 🎉
8. Why Work with RateShop Mortgage
At RateShop.ca, we help Canadians secure mortgages with lower rates and better terms. Instead of visiting multiple banks, you can compare over 50 lenders online — including big banks, credit unions, and private lenders — all in one place.
