Your Guide to Getting Your Mortgage Approved

Quick, Easy Approvals with The Best Toronto Mortgage Pros

When purchasing Canadian real estate in 2023; it’s true that you need to be prepared to move quickly. In many markets, there is a shortage of inventory, with a surplus of qualified buyers. Review these tips from our top mortgage brokers, so that you can get your mortgage loan approved and be ready to jump on your dream property when it hits the market.

Don’t Quit Your Day Job

When it comes to the world of mortgage approvals, having tenure with your employer goes a long way. Lenders look at not only your income but also the industry that you are in and the length of time that you’ve been in your role. Changes to your employment can cause big delays in your mortgage approval and in some cases may even result in a declined application from your mortgage broker. Don’t throw a wrench in your approval plans; ensure you keep your current job until your mortgage is not only approved, but completely closes.

Be sure to chat with your certified mortgage advisor to confirm the details of your mortgage approval such as the interest rate, mortgage terms, any additional fees associated with the application and what your options will be for porting your mortgage in the event you sell the property. For more information on the mortgage pre-approval process, visit our helpful What to Expect When Buying a Home Guide.

Have a Pulse on Your Credit Standing

With tools like, it only takes a few minutes to access your credit report. Your credit bureau will report your current credit score, any open trade lines, as well as the length of history that you have with paying back credit. You may not know that having longer standing trade lines, such as your oldest credit card, actually help to boost your credit score over time.

Since credit scores and activity have a large impact on your mortgage approval; it’s important to note that below-average credit scores can make getting a mortgage difficult, or even impossible. Most lenders require a minimum credit score of 680, so if you’re working to build poor credit or start a credit standing all together, a lender could deny your request for a traditional mortgage loan. In addition to higher credit scores being more desirable to a lender, ensure that you pay your bills on time, keep your debts low, and avoid new loans. 

Ask our licensed mortgage brokers more about how you can boost your credit score before applying, or head over to our Credit Tips Guide.

Connect with a bad credit mortgage broker here

When in Doubt – Save, Save, Save

Another key component to achieving a smooth approval with your certified mortgage advisor is showcasing your savings needed for your down payment and closing costs. Lenders like to reduce their risk, so the more you have saved, the better chance you have of getting your mortgage approved. 

Down payment needs vary depending on a variety of factors, such as the style of loan, the property type, and the financial institution’s rules. Each lender establishes its own criteria for a down payment, but as an average, you’ll need to show at least a 5% down payment. When it comes to closing costs, our mortgage professionals say to budget another 3%-4% of the purchase price of the home for fees such as Land Transfer Tax, inspection fees, legal fees, disbursements and more.

Minimize Debt Obligations

Though you don’t need to show your mortgage agent a zero dollar balance on your loans to qualify for a mortgage, the less you owe any creditors, the better. Mortgage affordability takes into account your debt-to-income ratio, which includes your housing costs and any monthly debt obligations. Under the stress test rules, you should not exceed 44% of your gross monthly income when taking on a mortgage.

Most importantly, you must avoid ANY major purchases during your mortgage approval process – all the way up until you have your new keys in hand. This means that shiny new car you’ve had your eye on, or those new appliances for your home will have to wait.

If you’re ready to connect with the best Toronto mortgage brokers and get started on your mortgage pre-approval process, head over to our easy and convenient mortgage calculator tools, or online application.


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