Applications & Processing
Mortgage Brokers and Lenders – Who Does What?
In Ontario, a mortgage broker acts as your primary point of contact throughout the mortgage process. Brokers do not typically lend money directly. Instead, they work with a network of financial institutions to find the most suitable mortgage product for your needs.
These institutions may include:
- Banks
- Credit unions
- Monoline lenders (specialized mortgage lenders)
The mortgage broker is usually compensated by the lender once your mortgage is funded, meaning their services are often at no direct cost to you.
Your broker’s role is to:
- Compare mortgage products across multiple lenders
- Help you understand your options
- Assist with documentation and applications
- Coordinate communication with the lender
Filling Out the Mortgage Application
Mortgage applications in Canada follow standardized formats and can often be completed online, in person, or through a broker’s digital platform.
The information you provide is used to assess your financial situation and determine mortgage eligibility, so accuracy is essential.
Documentation Required
To support your mortgage application in Ontario, you will typically need to provide:
- Employment verification (job letter and recent pay stubs)
- Last 2 years of income tax documents and Notices of Assessment (CRA)
- Recent bank account statements (usually 3 months)
- Investment account statements (RRSPs, TFSAs, stocks, etc.)
- Proof of additional income (rental income, child/spousal support, etc.)
- Credit card statements and debt obligations
- Details of auto loans, student loans, and other liabilities
- Government-issued photo ID
- Proof of down payment and its source (very important in Canada)
- Mortgage statements (if refinancing or carrying existing property debt)
Lenders in Canada may verify this information directly through financial institutions and credit bureaus such as:
- Equifax Canada
- TransUnion Canada
Stay in Communication
Once your application is submitted, your mortgage file is reviewed by a lender’s underwriter—a specialist who assesses your financial profile and confirms your ability to repay the loan.
If you are purchasing a property, the lender may also conduct:
- Property appraisal
- Additional documentation reviews
- Final approval review before funding
This process is known as mortgage underwriting.
During this stage, communication is critical. Be sure to:
- Respond quickly to document requests
- Stay in regular contact with your mortgage broker
- Provide any additional information promptly
Delays in communication can slow down approval and, in competitive Ontario markets, may even jeopardize a transaction.
A proactive and well-organized approach helps ensure a smooth approval process and positions you strongly when making an offer on a home.