THE 4 PARTS OF EVERY MORTGAGE
- johnathanmcquoid
- Jan 17
- 2 min read
Every mortgage approval in Canada is based on four core components — and lenders review each of them before deciding how much you qualify for. Understanding these pieces early reduces stress and helps you avoid last-minute surprises.
Most buyers don’t prepare until they’ve already found a home, but planning ahead gives you a major advantage. See how👇
Before you start shopping for a property, it’s smart to understand what lenders look for when evaluating your application and determining your approval strength.
1️⃣ Down Payment
Your down payment demonstrates financial readiness and commitment.
✔️ confirm if funds are saved or gifted
✔️ provide a clean 90-day history
✔️ verify the source of all deposits
Preparing documentation early prevents delays and removes unnecessary complications.
2️⃣ Credit
Your credit report shows how you manage borrowing over time.
✔️ length of credit history
✔️ limits and utilization
✔️ number and type of accounts
Good credit habits can improve your approval options and help qualify for better rates.
3️⃣ Income
Lenders review income stability as carefully as income amount.
✔️ time in your current role
✔️ salary vs hourly
✔️ industry consistency
✔️ employee vs self-employed
Stable, predictable income makes qualification smoother and more reliable.
4️⃣ Subject Property
Even if YOU qualify, the home itself must also meet lender standards.
✔️ location and property type
✔️ age and construction materials
✔️ remaining economic life
✔️ past or current structural issues
Some homes require additional insurer review, so preparing early helps avoid delays.
💬 Final Thought
These four elements form the backbone of every mortgage approval, and the sooner you prepare them, the easier the financing process becomes. Planning ahead helps uncover issues early, structure your file properly, and increase your overall success rate.
If you’d like us to review your documents, assess your file, and lock in a rate hold before you start house hunting, send The Frontline Mortgage Group a message anytime.