Pre-approved also means being prepared. The last thing you want to happen is to find your dream house and you can't get the financing quickly enough. To avoid this consider a pre-approved mortgage.

Getting a pre-approved mortgage puts the financing in place before you even make an offer. Also you can make an offer with confidence. The sale of a house is usually contingent on the buyer getting financing within an agreed-upon time. If the buyer can secure financing the sale could fall through.

What to do:

You can apply online on this web site for a pre-approved mortgage. You can feel secure knowing that all information you supply is completely secure and is always held in the strictest confidence. It's quick and easy and convenient. When you receive your pre-approval from us, we will work with you to find a lender with competitive rates who will issue your prequalification certificate. You will contacted from the mortgage lender to discuss options, and to request proof of income and employment, then you can be qualified easily and quickly.

Then once your purchase your home, simply contact your mortgage broker to provide property and offer details along with any other information and you can be approved within hours.

Know exactly what your Pre-approval means!

Not all pre-approvals are the same. John and Mary Jones decided they wanted to buy their first home. John held a steady job at a car dealership for the past 6 months and had already received one raise. Mary worked at a local department store as an assistant manager for over 3 years.  John and Mary spoke to their bank representative, gave them some basic details about their income and the funds available for the 5% down payment. The bank representative indicated to them that they were qualified to purchase a property. Excitedly John and Mary started looking for a place, looking in newspapers and magazines and actually started calling a few. They made some appointments to see some properties the next day.

When John and Mary went to the real estate office, the first question they were asked was "have you been pre-approved for a mortgage?" to which John answered, "Yes, we spoke to our bank and we qualify for the price we're looking for". So they went to look at homes. Over the two weeks, John and Mary out three times a week with their Realtor until they found a perfect condo. They put in an offer, which was accepted by the vendor.

The next day, they went to their bank for the financing. The bank input the application on the computer and sent it "down-town" for approval. Over the next few days John and Mary spent all their free time looking at furniture, paint and imagining everything they're going to do with their new home. They called their friends and family and told them all the layout, location and amenities of their new home.

Days later Mary gets a call from the bank indicating that their mortgage application had been declined. According to the bank, Canada Mortgage & Housing Corporation (CMHC) had declined the application because John didn't have the minimum required time on his job - one year. Disappointed and embarrassed, John and Mary decided to wait on the idea of home ownership and continue renting.

Knowledge---or the lack of.

Pre-approvals are calculations that are done based on the information supplied by the buyer. Often, the information obtained is poor due to the lack of knowledge by the buyers and/or the loan officers. Loan officers are knowledgeable in mortgaging criteria but due to time constraints or the fact that they can 200+ banking products, loan officers may miss critical pieces of information that could make the mortgage approval a reality. There are many times where the mortgage application is delayed or declined for unwarranted reasons. What ends up happening is annoyed and embarrassed buyers, frustrated vendors and tired and disappointed Realtors who spent the last three weeks trying to find that perfect home for the buyer.

Things could have worked out differently if the Jones' had contacted a mortgage broker right at the start. The broker would have made them aware that the short-term employment was an issue. Different options could have been arranged such as asking their parents to be co-borrowers on the loan as a way of strengthening the application. Speaking with a mortgage broker, prior to home shopping, is a smart way to eliminate many obstacles that may arise during the mortgage financing process.

Mortgage brokers work with the buyer to arrange financing that best suits their needs and it usually doesn't cost the consumer any fees. The brokers are paid a commission by the lender for placing mortgages with them. A brokerage fee only applies if the mortgage application doesn't fit standard qualifications.

The brokers have access to 30 plus lenders including the major financial institutions. More lenders mean more competition for your mortgage and that usually means better rates and terms for you. For the lenders, this is also a very efficient way of adding to their mortgage portfolio. They only pay a commission to the broker when a mortgage funds. Lenders eliminate the bricks and mortar costs of bank branches and all other costs associated with originating mortgages, in branches.

In 1992 25% of the mortgages were processed through mortgage brokers in the USA. By 2000 that has risen to approximately 70%. In Canada mortgage the trend seems to be heading in the same direction. At the end of 2001, mortgage brokers had 25% of the market share in Canada. A study by CMHC indicates that by 2005 mortgage brokers will have 50% market share.

The mortgage industry in Canada is changing and mortgage brokers are the catalyst for this change. As the consumer realizes this and become more aware of the value of what a mortgage broker brings to the table, you will see more people using brokers and recommending brokers to your friends and relatives. This means the experience that John and Mary had will become a thing of the past.