The Importance of a Mortgage Pre-Approval

Before you start house hunting, one of the smartest first steps you can take is securing a mortgage pre-approval. While it’s not a guarantee of final financing, a pre-approval gives you a clear picture of what you can afford and positions you as a more confident, prepared buyer in a competitive market.

A proper mortgage pre-approval involves a lender reviewing your income, credit history, debts, and down payment to determine the price range they’re willing to lend — often locking in an interest rate for a set period of time. This helps protect you from rate increases while you search and ensures you’re shopping within realistic financial boundaries, avoiding disappointment or overextension.

The pre-approval process may identify missing paperwork so you can take care of getting that ahead of time instead of rushing at the last minute. And if there are any surprise issues with your credit history, you may need to address them first.

From another practical standpoint, pre-approved buyers are also taken more seriously by sellers. When receiving an offer on behalf of a seller client, I certainly always ask the buyer agent where their buyer is with that, making sure they are working with a bank or broker and have got a pre-approval. In multiple-offer situations, a strong pre-approval may strengthen your offer and reduce concerns about financing risk. When paired with guidance from an experienced REALTOR®, it allows you to act quickly and decisively when the right home comes along — a major advantage in any real estate market.

In short, a mortgage pre-approval isn’t just a formality — it’s a powerful planning tool that brings clarity, confidence, and credibility to your home-buying journey.

If you're thinking about buying a home, I can refer you to a great mortgage broker who will look after your best interests. Call or email, and let's get you moving!

Terminology Tuesday: Deposit

When buying a home, one of the first financial steps a buyer makes is providing a deposit — but many people misunderstand what it actually means.

Simply put, a deposit is money the buyer submits when an offer is accepted to show they are serious about purchasing the property. Think of it as a good-faith commitment to move forward with the transaction. In that spirit, in some areas a deposit is called "earnest money" or even "good faith deposit".

The deposit doesn’t go directly into the seller’s pocket, though. Instead, it’s typically held in trust in the listing brokerage's trust account, or by a lawyer if no brokerage is involved, until closing. 

A deposit serves a few important purposes. First, it shows commitment, affirming to the seller that the buyer intends to complete the purchase. Second, this commitment makes the seller more comfortable taking their home off the market as sold. And finally, it's a bit of protection for the seller - if the buyer fails to meet the terms of the agreement without a valid reason, the deposit may be forfeited to the seller as compensation.

One point of terminology confusion is 'deposit' versus 'down payment'. The deposit is paid shortly after the offer is accepted to secure the deal. The down payment is the amount of the purchase price that a buyer is paying on their own, above whatever mortgage they are getting, and is paid on closing. The deposit is simply credited toward the down payment later. 

As for how much a deposit needs to be, there’s no universal number — it varies depending on the market, location, and price of the home. It's often around 5% but can ultimately be whatever is agreed to in the offer negotiation process. In competitive markets, stronger deposits may make an offer more appealing, but the right amount should always fit the buyer’s comfort level and financial plan. A listing also typically includes a requested deposit amount and if the buyer is able to meet that request that is one less point of consideration or potential objection for the seller.

The bottom line is that a deposit is more than just money — it’s a statement of intent. Understanding how it works helps buyers feel more confident and helps sellers feel secure when moving forward with a sale. 

If you’re buying or selling and have questions about deposits or offer terms, always speak with a qualified real estate professional who can explain how it applies in your specific situation.

Market Media Monday - February 23, 2026

A curated list of recent headlines relevant to real estate in Canada or locally, with short excerpts. Click each headline link to read the full article on the source site.

[ Market Outlook: Canada home prices fall to nearly five-year low in January ]
"Canada’s housing market began 2026 on softer footing, with benchmark home prices falling to their lowest level in almost five years as sales activity declined in January."

[ Most Canadian Provinces See Home Prices Rise, Two Hit Record Highs ]
"Home prices moved lower at the national level, but that reality isn’t aligned with buyers in most provinces. Canadian Real Estate Association (CREA) data shows the price of a typical home fell in January, but most provinces saw prices rise. The decline has been largely confined to BC and Ontario, where weak sales and robust inventory are dragging prices even lower."

[ National real estate association blames Ontario snowstorm for cooling housing sales in January ]
"The Canadian Real Estate Association (CREA) is blaming Old Man Winter as a factor in cool housing sales during the month of January."

[ Mortgage rate outlook: Why experts say the next move could be lower ]
"After a turbulent 2025, mortgage rates are opening the year in a narrow range, but experts say that calm may not last. "

[ Christopher Liew: How much income do you require to become a homeowner in Canada? ]
"An increasing number of people in their 20s and 30s are beginning to feel that homeownership is out of reach. Home prices remain high, mortgage rates are still elevated compared to a few years ago, and other daily living costs continue to squeeze household budgets."

Terminology Tuesday: Status Certificate

In a nutshell or "TLDR", a status certificate is a bundle of information about a condo corporation's finances and governance that a potential unit buyer will want to see before committing to a purchase.

When you purchase a unit in a condominium complex, whether apartment or townhouse, you are buying your specific unit but you are also buying an equal share in the condominium corporation.  Because you are buying into the condo corporation, you need to do some due diligence first.

Condo ownership typically gives you a right to vote in condo meetings on things like rule changes but it also means shared responsibility for corporate obligations and expenses, like maintenance of all the common area (known technically as common elements).  This includes lawn care, snow removal, and in apartment buildings stuff like cleaning and upkeep of hallways and elevators.

This should all be covered by your monthly condominium fees, with a portion also going into a legally-mandated reserve fund which the condo corporation uses to maintain and replace various building components and carry out repairs.  The reserve fund is used for a wide range of items, such as roof replacement, window updates, new carpeting in common areas, and so on.

The condo corporation should be carrying out a professional review of the reserve fund and expected repairs and maintenance, looking into the future by least several years, to make sure the reserve fund is reasonably adequate.  If significant repairs are required that can not be put off and the reserve fund isn't sufficient to pay for them, that is where owners can see special assessments to make up the difference.

Obviously, one of the most important things to consider when looking at a condo purchase is whether the reserve fund is appropriate for the age of the condo complex or building.  New condo developments obviously have smaller reserve funds because they haven't had time to build them up, and repair costs should be fairly minimal in the first few years.  Established condominiums on the other hand should have a healthy reserve fund built up.  But how do you know?

Here enters the "status certificate".  Don't let the name fool you, though.  The name might make you think of a certificate from school and imagine a one-pager.  But a proper status certificate, with the usual attachments, is actually a somewhat thick package of paper (although in modern practice, it's typically requested online, which makes it just a long multi-page file). It should include all the financial information for the condominium, including budget documents, reserve fund information, and whether the unit itself is in arrears or not, and any special assessments.  It also includes a copy of the condominium's by-laws and rules.  If you're interested in reading the source law, the Condominium Act, 1998 spells out the minimum requirements in [ Section 76 ].

When making an offer on a condo, you should include a condition for your lawyer to review the status certificate.  Unless the seller has already requested a copy, you'll have to request one and wait for it to come.  Legally, the condo corporation is supposed to deliver it within 10 day of receiving the written request and payment.  As such, this condition is usually for a couple of weeks.

Once received, your lawyer will review all the documentation and either give a thumbs-up or bring to your attention any points of concern. From there, you can make an informed decision whether to proceed with the purchase or not.

Market Media Monday - February 16, 2026

A curated list of recent headlines relevant to real estate in Canada or locally, with short excerpts. Click each headline link to read the full article on the source site.

[ Housing market faces possible recession in 2026 amid ‘subdued’ demand: CMHC ]
"Canada’s housing market is expected to stay “subdued” this year amid economic uncertainty stemming from the trade war and U.S. tariffs — with a recession still a possibility. The Canada Mortgage and Housing Corporation released its 2026 housing market outlook Tuesday, which says demand from buyers is expected to “remain below historical averages.”"

[ Christopher Liew: Is it smarter to renew your mortgage for 3 years or 5 years in 2026? ]
"After several years of elevated interest rates and persistent inflation, choosing between a three- or five-year mortgage renewal is weighing on the minds of many homeowners, as even a small difference in your rate can translate into thousands of dollars spent or saved over the life of your mortgage."

[ Why fixed mortgage rates may not move when the Bank of Canada does ]
"Fixed rate mortgages are products that have pricing locked in for a specific period of time. If you have a five-year fixed rate mortgage term, your interest rate and payments are set for the entire term. That means you won’t see any fluctuations in your interest costs, as long as you make all of your regular payments. Rates for these mortgages are based on the bond market, not directly on the BoC’s interest rate. Banks typically use the Government of Canada bond yield as a benchmark for fixed rate mortgage pricing."

[ Ontario city is suddenly one of the most in-demand places for renters in Canada ]
"According to RentCafe.com's latest Renter Interest Report, Hamilton, Ont., recorded the biggest jump this quarter among apartment hunters. The data shows that favourited listings have more than tripled in the city (up 207 per cent), representing the highest increase in the country."

Terminology Tuesday: Appraisal

When buying, selling, or refinancing a home, you may hear the term “appraisal.” An appraisal is a professional, unbiased estimate of a property’s market value conducted by a certified appraiser. Lenders typically require an appraisal to ensure the home is worth the amount being financed.

For lenders, the home acts as collateral for the mortgage. An appraisal helps confirm that the property’s value supports the loan amount. If a buyer agrees to pay $700,000 for a home but the appraisal comes in at $680,000, the lender may only finance based on the lower value. This protects the lender from lending more money than the property is worth.

Appraisals can also be useful outside of purchases. They’re often required when refinancing, settling estates, handling divorces, or determining property value for tax purposes.

During an appraisal, the appraiser visits the property to evaluate its condition, size, features, and location. They will measure the home, take photos, and note things like renovations, upgrades, layout, and overall maintenance.

The appraiser then compares the property to recent sales of similar homes in the same area, often called “comparable sales” or “comps.” Adjustments are made to account for differences such as square footage, lot size, age, and features like garages or finished basements. Using this information, the appraiser prepares a report estimating the home’s current market value.

A house appraisal can be an important step in many real estate transactions. It provides an independent estimate of value that helps lenders, buyers, and sellers make informed decisions. While it may seem like just another item on the buying checklist, the appraisal plays a key role in ensuring that a property’s price reflects its true market value.

Market Media Monday - February 9, 2026

A curated list of recent headlines relevant to real estate in Canada or locally, with short excerpts. Click each headline link to read the full article on the source site.

[ Canada’s housing market split into ‘two geographies’ ]
"Prices overall in Canada are down amid rising supply and falling demand, but a new report has posited the nation’s real estate picture is actually split in two. The most recent Housing Market Monitor report from National Bank of Canada Capital Markets noted that British Columbia, Ontario and even Alberta represent one half of the market in Canada."

[ Greater Toronto home sales, prices slide in January with more weakness ahead: TRREB ]
"Greater Toronto Area home sales and price weakness is likely to persist for at least the first half of the year, the region’s real estate board said Wednesday. "

[ Douglas Todd: 10 ways to take advantage of Canada’s housing 'correction' ]
"Opinion: What is happening now in urban Canadian housing is an opportunity — for would-be buyers, as well as governments. We can restrict towers, retain existing rentals and more"

[ Bank of Canada Explains Toronto Condos, Describes A Ponzi Scheme ]
"Canada’s largest real estate market runs on speculation, not housing demand. That’s the core message from the Bank of Canada’s (BoC) latest report, outlining the mechanics of a Ponzi scheme, without dropping the P-bomb. They warn that falling investor returns, driven by higher interest rates, now threaten builder models, suggesting these homes aren’t viable as homes—only as financial instruments. "

Terminology Tuesday: Home Inspection

When buying a home, one of the most important steps in the process is the home inspection. A home inspection is a professional, visual examination of a property’s major systems and components. Its purpose is to help buyers understand the condition of the home before completing the purchase.

A qualified home inspector will typically examine key areas of the property, including the roof, foundation, structure, plumbing, electrical systems, heating and cooling systems, insulation, windows, and doors. They will also look for signs of water damage, safety issues, and general wear and tear. The inspection does not involve opening walls or dismantling systems, but it provides a thorough overview of what is visible and accessible.

After the inspection, the inspector provides a detailed written report outlining their findings. This report may include photographs, descriptions of any issues discovered, and recommendations for repairs or further evaluation by specialists if needed.

For buyers, a home inspection provides valuable information and peace of mind. It helps identify potential problems before finalizing the purchase and can give buyers the opportunity to negotiate repairs, request credits, or simply make a more informed decision about the property.

While no home is perfect, a home inspection helps ensure there are no major surprises after moving in. It’s an important step that helps buyers better understand the home they’re about to call their own.

Market Media Monday - February 2, 2026

A curated list of recent headlines relevant to real estate in Canada or locally, with short excerpts. Click each headline link to read the full article on the source site.

[ Canada’s housing market ended 2025 quietly — here's what buyers and sellers can look for in 2026 ]
"“The quiet finish to 2025 reinforces that this is a negotiation-first market rather than a momentum-driven one,” Fox said. “Buyers shouldn’t expect bidding wars to suddenly reappear just because rates are lower, and sellers shouldn’t assume prices will rebound quickly without concessions.”"

[ Bank of Canada rate decision fuels optimism among property investors ]
"First-time homebuyers and real estate investors should take advantage of the housing market while interest rates are low, mortgage professionals say."

[ Why your 2026 mortgage renewal could jump 40% — or fall by 20% ]
"Upcoming mortgage renewals are expected to have an uneven impact on Canadians in 2026, with households facing either sharp payment increases or meaningful relief."