The mortgage application process in Calgary is systematic and predictable, but requires careful preparation and understanding of each step. From the first contact with the lender to receiving the keys to your new home, it usually takes 45 to 60 days for the entire home buying process to be completed, although pre-approval can be obtained much faster — within 24-48 hours if all the necessary documents are available.

It is important to understand that the process consists of two main phases:

1. Pre-approval — determining the maximum loan amount and fixing the interest rate for 90-130 days.
2. Final mortgage approval — after finding a specific property and having it appraised.

Statistics show that well-prepared applicants with a complete set of documents have a much higher chance of quick approval. In Calgary, the average time for mortgage application processing is 11-25 days at the underwriting stage, but this period can be reduced to 5-7 days with proper preparation.

Stage 1: Preparing to apply

Assessing your financial readiness

Before starting the process, you need to assess your financial situation:

• GDS (Gross Debt Service) — no more than 39% of your gross monthly income.
• TDS (Total Debt Service) — no more than 44%.

For a typical buyer with an income of $80,000 per year, the maximum monthly housing expenses should not exceed $2,600. This includes:

• Mortgage payments
• Property taxes
• Heating
• Half of the condominium fees (if applicable)

Credit history check

• Minimum credit score for traditional mortgages — 680.
• Some programs accept scores as low as 600.
• It is recommended to obtain a free credit report from Equifax or TransUnion.
• Improving your score by as little as 20-40 points can lower your interest rates.

Saving for a down payment and reserve funds

• Minimum down payment: 5% for homes up to $500,000.
• For properties over $500,000 — 10% on the amount above that threshold.
• Reserve for closing the deal: 2-3% of the cost.

Example for a $500,000 home:

• Down payment: $25,000 (5%)
• Closing costs: $10,000-15,000 (2-3%)
• Reserve fund: $5,000-10,000
• Total amount: $40,000-50,000

Step 2: Gathering the necessary documents

Documents for identity verification

• Passport or driver's license
• Permanent resident card (for immigrants)
• Documents confirming your current address
• Previous address (if you have lived at your current address for less than 3 years)

Income documents

For employees:

• Last 2-3 pay stubs
• Form T4 for the previous tax year
• Notice of Assessment for the last 2 years
• Letter from employer stating:
• Position and length of employment
• Annual salary
• Type of employment (permanent/temporary)
• Employer's contact information

For self-employed individuals:

• Notice of Assessment for the last 2-3 years
• Business financial statements for 2 years
• Letter from an accountant regarding income
• Bank statements for business accounts for 3-6 months

Financial documents

• Bank statements for the last 3 months
• Investment statements (RRSP, TFSA, stocks, bonds)
• Information about all debts (car loans, credit cards, loans)
• Gift letter (if funds are provided by relatives)
• Blank check for automatic payments

Real estate documents (for final approval)

• Copy of accepted purchase offer
• MLS listing or information sheet
• Real estate appraisal report (ordered by the lender)
• Home inspection report
• Calculation of property taxes and utility bills
• Contact information for a lawyer/notary

Step 3: Select a lender or broker

Advantages of working directly with a bank

Major Calgary banks (TD, RBC, BMO, CIBC, Scotiabank) offer direct access to their mortgage products. **Advantages:

• Established relationship with the client
• Ability to obtain package discounts on other financial products
• Direct communication with the lender

TD Bank offers:

• Online applications with instant response
• 120-day interest rate lock
• Option to start the process online, by phone, or in person at a branch

Advantages of working with a mortgage broker

Mortgage brokers in Calgary have access to 50+ different lenders, allowing them to find the best terms for your specific situation. Key benefits:

• Brokers are legally obligated to work in the best interests of their clients
• Access to exclusive rates through wholesale agreements

Hello Mortgage and other brokerage companies in Calgary offer:

• Online applications
• Personal consultations
• Free analysis of options from different lenders
• Support throughout the process

Step 4: Apply for pre-approval

Online application

Most lenders offer convenient online forms for pre-approval. Process duration: 5-15 minutes. You will be asked to provide basic information about your income, assets, and desired loan amount.

Typical online application includes:

• Personal information (name, address, contact details)
• Employment and income information
• Financial obligations and assets
• Desired mortgage amount and type of interest rate
• Information about the property (if already found)

Consultation with a specialist

After submitting an online application, a consultation with a mortgage specialist takes place. Meeting formats:

• In person
• By phone
• By video call

Duration: 30–60 minutes.

Topics discussed:

• Home purchase goals and timeline
• Detailed analysis of your financial situation
• Mortgage product options
• Interest rates and terms
• Next steps in the process

Preliminary approval result

Preliminary approval is usually issued within 24-48 hours and includes:

• Maximum loan amount
• Fixed rate for 90-130 days
• Monthly payment at maximum amount
• Terms and conditions of approval

Important: Pre-approval does not guarantee a final loan, but it significantly strengthens your position when searching for a property.

Step 5: Search for a property and make an offer

Using pre-approval

With pre-approval, you can search for a home with confidence within your approved budget. In Calgary's fast-paced market, pre-approval:

• Demonstrates serious intent
• Can be a deciding factor in the seller's acceptance of an offer

Offer terms specific to Calgary

When submitting an offer in Calgary, it is recommended to include the following terms:

• Financing contingency (usually 5-10 days)
• Property inspection contingency
• Radon testing (Calgary has elevated radon levels)
• Condominium document review (for apartments)

The deposit is usually $5,000-10,000 in Calgary and is held in escrow until the transaction is completed.

Step 6: Final mortgage approval

Submitting a complete application

Once the offer is accepted, you must submit a complete mortgage application with all required documents. This stage includes a detailed analysis of the specific property and a final review of the borrower's financial situation.

Additional documents at this stage:

• Complete copy of the purchase agreement
• Deposit receipt
• Detailed information about the property
• Calculations of own funds for closing
• Proof of home insurance

Underwriting process

Underwriting is the most critical stage of the approval process. The underwriter thoroughly analyzes three key aspects (the 3 C's of underwriting):

1. Capacity — analysis of income, expenses, and ability to service the debt. Includes verification of GDS and TDS ratios, income stability, and employment history.
2. Credit — a detailed analysis of credit history, including payment history, types of credit used, length of credit history, and total debt.
3. Collateral — assessment of real estate and its suitability as collateral. Includes professional appraisal, neighborhood analysis, and verification of legal ownership status.

Typical underwriting time in Canada is 11-25 days, but may be shortened if all necessary documents are available and there are no complications.

Possible requests for additional information

During underwriting, the lender may request additional documents:

• Explanation of unusual bank transactions
• Additional proof of income
• Updated bank statements
• Explanation of credit history
• Additional information about the property

The speed of response to these requests is critical to meeting the closing date.

Stage 7: Property appraisal

Appraisal ordering process

A property appraisal is ordered by the lender after the complete application is submitted. The appraisal fee is typically $300-600 and is paid by the buyer, although some lenders may waive this fee under certain conditions.

The process includes the following steps:

1. Ordering the appraisal — The lender appoints a licensed appraiser.
2. Scheduling the visit — The appraiser contacts the owner/agent to schedule a time.
3. Physical inspection — a detailed inspection of the interior and exterior (30-60 minutes).
4. Analysis and report — preparation of a detailed appraisal report (2-5 days).

Factors affecting appraisals in Calgary

Appraisers consider specific local factors:

• Proximity to LRT stations and transportation infrastructure
• Quality of school districts
• Proximity to downtown and major employers
• Flood risk (especially in some areas after the 2013 floods)
• Energy efficiency and environmental features

Potential appraisal issues

In Calgary's dynamic market, there may be discrepancies between the sale price and the appraised value. If the appraisal is lower than the purchase price, options include:

• Negotiating with the seller to lower the price
• Increase the down payment to cover the difference
• Appeal the appraisal by getting a second opinion
• Walk away from the deal (if there is a contingency clause)

Step 8: CMHC mortgage insurance

When CMHC insurance is required

CMHC insurance is mandatory for all mortgages with a down payment of less than 20%. The premium varies from 0.6% to 4.5% of the mortgage amount, depending on the size of the down payment and the amortization term.

For a typical mortgage in Calgary:

• 5% down payment → 4.00% premium
• 10% down payment → 3.10% premium
• Down payment 15% → premium 2.80%
• Down payment 20%+ → insurance not required

CMHC approval process

CMHC review time is typically 2-5 business days for standard applications. For complex cases or condos with engineering reports, the process may take longer.

Additional CMHC requirements:

• Maximum property value of $1,000,000
• Property must be located in Canada
• Compliance with minimum requirements for down payment

Step 9: Legal

Choosing a lawyer

In Alberta, it is mandatory to hire a lawyer to complete a mortgage transaction. The cost of legal services in Calgary is typically $1,000–2,500, including:

• title search,
• document preparation,
• registration.

Main functions of a lawyer:

• Title search and verification of ownership
• Preparation of mortgage documents
• Calculation of adjustments (taxes, utilities)
• Registration of property transfer
• Ensuring legal compliance

Documents to be signed

At a meeting with a lawyer one week before closing, the following documents are signed:

• Mortgage agreement
• Title transfer documents
• Automatic payment debit forms
• Insurance applications
• Calculation of final adjustments

Important: The lawyer will also need a bank draft for the amount of the down payment + closing costs – the mortgage amount.

Step 10: Final steps and closing

Preparing for closing day

1-2 weeks before closing, you need to:

• Finalize home insurance and provide confirmation to the lender
• Obtain an accurate calculation of closing costs from your lawyer
• Arrange bank drafts for the necessary amounts
• Conduct a final inspection of the property

Closing day

The following events take place on closing day:

1. Before noon: the lawyer registers the transfer of title and the mortgage
2. After noon: the lender transfers the funds
3. Afternoon: the seller receives the proceeds from the sale
4. Late afternoon: The buyer receives the keys

The lawyer sends a completion report to the buyer and lender.

Timeline and coordination

General timeline of the process

• Days 1–3: Negotiation and acceptance of offer

• Days 1–5: Submission of complete mortgage application

• Days 3–7: Ordering and conducting appraisal

• Days 5–10: Placement of deposit

• Days 7–15: Property inspection and condition checks

• Days 10–25: Underwriting and approval process

• Days 10–14: Title search and title insurance

• Days 20–30: Finalization of mortgage documents

• Day 45–60: Closing and transfer of ownership

Tips to speed up the process

• Prepare all documents in advance
• Respond quickly to lender requests
• Maintain stable finances throughout the process
• Do not make any major purchases before closing
• Maintain regular communication with all parties involved

Potential challenges and solutions

Delays in approval

The most common causes of delays are:

• Incomplete or inaccurate documents
• Changes in employment or financial situation
• Problems with property valuation
• Complex title issues
• Delays in obtaining CMHC approval

Loan denial

If the application is denied, possible alternatives include:

• Approaching B-lenders or private lenders
• Involving a co-signer
• Increasing the down payment
• Considering less expensive properties
• Improving credit history before reapplying

Problems on closing day

Rare but possible problems:

• Delays in the transfer of funds
• Last-minute changes to documents
• Title or insurance issues
• Technical problems with registration

In such cases, the lawyer coordinates the resolution of issues and may request a short-term extension of the closing date.

Conclusion

Applying for a mortgage in Calgary requires:

• a systematic approach,
• thorough preparation of documents,
• understanding of each stage of the process.

With proper planning and preparation, most applicants can expect successful approval and timely closing.

Key to success: start preparing early, communicate openly, and respond quickly to challenges.