Verify your credit score

Obtain a copy of your credit file from Equifax.com (or an equivalent service). Review each line of the file, and if you find any errors or omissions, contact your credit bureau to have them corrected. How's your credit rating? For those of you who have more than one first and last name, make sure that the names on your Equifax file also appear on your credit products. A missing name can cause problems with a mortgage pre-authorization! Paying off your credit card debt is one way to improve your credit rating.

Do the math

Now that you have an idea of how much you owe, think about all the assets you own (your current property, investments, stocks, bonds and other properties) and add them up. Helpful hint: it's better to own more than you owe. You can easily find online calculators that will help you make sense of all these figures and work out approximately how much mortgage you can get.

Get a estimate

Meet with a representative of a financial institution or lender. The questions he or she will ask may bring to light things you overlooked in your initial assessment, such as liabilities or assets you didn't even realize you had. Based on this information, they'll give you a rough estimate of how much you can borrow. Please note, however, that this informal process does not constitute a guarantee or pre-approval. It is simply intended to give you an idea of what properties you can afford, and to help you determine whether you are ready to make this financial commitment.

Learn the terminology

Do your homework, familiarize yourself with mortgage terms and options. Talk to your broker, discuss the subject with friends and family, and visit the many websites that deal with amortization periods, the pros and cons of fixed and variable rates, and so on. - you'll learn a lot.

Choose a lender

Since contracting a mortgage is one of the most important financial contracts you can enter into, it can pay to shop around first. Even if you have an excellent relationship with your financial institution, it can't hurt to explore the mortgage options offered by other lending institutions.


If you're pressed for time, a mortgage broker can “shop around” for you and find the best possible rate. Before choosing a broker, make sure he or she is not affiliated with a particular financial or lending institution. A mortgage broker who is not affiliated with any financial institution can answer all your questions and present all your options in an unbiased manner.

Get pre-appoved

After reviewing your financial situation, the lender will determine the maximum mortgage amount you qualify for and lock in a mortgage interest rate. Prequalification certificates normally last for 90-120 days. If you don’t buy a home within this timeframe, you may renew your agreement at the going interest rate when your guaranteed rate expires.

A firm offer

Homebuyers with a pre-approved mortgage have the upper hand when they put an offer on the table. And it’s easy to see why. Having pre-approval demonstrates that you’re serious about purchasing a home—you’ve done your homework and have arrived prepared. It also officially addresses your ability to finance the purchase, which leaves no question in a seller’s mind that yours is a firm offer.

There you have it - now you know the simple steps you need to take to secure a mortgage that not only suits your needs, but, more importantly, allows you to move into the home of your dreams. Of course, if you have any questions or doubts, don't hesitate to contact your real estate or mortgage broker. After all, answering your questions is their job!