What is the online mortgage approval process?

Looking for a mortgage? Did you know that there is now the opportunity to apply for a mortgage online? 

With Scotiabank’s eHOME you can be pre-approved, search for a home and get mortgage approval all in one place. That's right, you can get approved for mortgage from the safety and comfort of your couch.

If you're ready to start the process of applying for a mortgage online, here are some details on how to prepare and what to expect.

Before starting the mortgage pre-approval process, it’s helpful to get an idea of what you can afford. There are a number of online calculators, like this one from Scotiabank, that you can use to give you an initial idea of what you can afford.

To get a more accurate estimate for your pre-approval, you will need to provide personal and financial details as well as information about the property you're interested in purchasing. You will likely need to provide the following:

• Gross income
• Property taxes
• Condominium fees
• Heating costs
• Borrowing payments (e.g. credit cards, loans)
• Mortgage product (e.g. three-year variable)
• Interest rate
• Amortization (how long it will take to pay off your mortgage)

When calculating what you may be able to afford, don't forget to consider how much you have saved for your down payment and if you have enough to cover closing costs and moving costs.

The pre-approval process allows you to gather information from different lenders including the maximum mortgage you qualify for, and an estimate of your mortgage payments. The pre-approval process also allows you to lock in an interest rate for a period of 60 to 130 days, depending on the lender.

The pre-approval process will vary between different lenders, but you can expect to be asked to provide some personal and financial information. The lender is also likely to run a credit check to review your credit score and credit history. Some of the specific information you can expect to provide may include:

• Income
• Assets (what you own)
• Debt
• Proof of employment (e.g. recent pay stub)
• Proof you can pay your closing costs (e.g. administrative fees, lawyer fees)

During the pre-approval process, you should ask your lender to clarify any questions that you may have. Some questions to ask may include:

• How long do you guarantee the preapproved rate (usually between 60 to 130 days)
• Will I automatically get the lowest rate if interest rates go down during the preapproval process?
• Is it possible to extend the pre-approval?

It’s important to know that the pre-approval process does not guarantee that you will be approved for a mortgage.

Now for the fun part, it's time to start searching for your new home. You can search for your home directly on the eHOME platform. You can also reach out to a real estate agent to help you start your house hunt.

As you're conducting your search, think about which neighbourhoods you're interested in and whether you can afford them. You can also make a list of your needs and wants to help you narrow your focus.

With online real estate sites, you can quickly filter down to the city or neighbourhood you are interested in as well as the min and max property price, and the number of bedrooms or bathrooms you desire.

If you choose to use a real estate agent, you can share your lists of needs and wants with them so they have a better idea of what you're looking for.

As you navigate the mortgage process online, it’s normal that you will have questions and want to discuss what option will work best for you with a professional. With Scotiabank eHOME, there are mortgage specialists you can connect with who can answer your questions in real time to help you find the mortgage that’s right for you.