This is where the lender stops assessing a profile and starts verifying a file. Your income gets proved rather than stated, and the property gets valued. In our files, this is where deals fall apart, and almost always over a document.
Pekoe Mortgages is licensed in Ontario (FSRA #13321) and Alberta (RECA). This stage page routes you to the answer. It does not replace it.
Whether the pre-approval becomes a commitment. The lender verifies the income it took on trust, values the property it had never seen, and either issues a mortgage commitment or declines.
If you have a financing condition from stage 3, this stage has to finish inside that window. That is the pressure, and it is why the document set matters more than anything else you do here.
| Step | Who does it | What it produces |
|---|---|---|
| Submit the full document package | You, chased by your broker | A file the underwriter can actually work |
| Verify income against the documents, not the application | Lender | Confirmed qualifying income, which can differ from the pre-approval |
| Order and complete the appraisal | Lender, through an approved appraiser | A value the loan is calculated against |
| Review condominium documents, where they apply | Lender and your lawyer | Confirmation the building itself is financeable |
| Issue the mortgage commitment | Lender | A conditional offer of financing, in writing |
| Satisfy the lender’s own conditions | You and your broker | A commitment with nothing outstanding |
A commitment is not the same as a pre-approval, and it usually arrives with conditions of its own attached.
Producing documents quickly, and disclosing anything that has changed since the pre-approval.
Packaging the file, answering the underwriter’s questions, and moving it to a second lender if the first declines.
The person at the lender who decides. You never speak to them, which is why how the file is presented matters.
Appointed by the lender, not by you. Valuing the property the loan is secured against.
| Document | Why it is needed | What delays it |
|---|---|---|
| Income verification matched to your employment type | Salary, hourly, commission and self-employed income are each assessed differently | Variable income, a recent job change, or a probation period |
| Down payment history | The source of funds has to be traced, not just the balance shown | Transfers between accounts shortly before closing |
| The signed purchase agreement and listing | The lender assesses the specific property and price | Amendments that have not been sent on |
| Access for the appraisal | The appraiser has to get into the property | Tenants, rural locations, limited appraiser availability |
| Condominium documents, where applicable | The lender assesses the corporation as well as the unit | The corporation’s own turnaround |
The paperwork. The full document checklist, what the lender needs inside the condition window, and how long a mortgage actually takes.
Income that is not a simple salary. First year self-employed, overtime income, rotational work, fly in fly out, and oil and gas income.
When life changed mid-file. A new job or probation, maternity or parental leave, and a layoff.
If it goes sideways. Declined by a lender, and the difference between monoline lenders and banks in Ontario or in Alberta.
If you are buying before you sell. Bridge financing in Canada, how the gap between closings is funded and what it costs.
Yes. The pre-approval was based on your profile. Underwriting verifies it and adds the property, and either can change the answer.
The lender’s written offer of financing on a specific property, usually with conditions attached. It is a stronger document than a pre-approval but still not unconditional.
The lender orders it through an approved appraiser. The borrower usually pays, and a residential appraisal typically runs $300 to $600.
The lender lends on the lesser of price or appraised value, so the shortfall becomes cash you have to find. If you still have a financing condition, you have an exit.
Qualifying income is calculated from filed history rather than recent pay, and the exact averaging period is lender-specific. Raise it early rather than at underwriting.
Immediately. Lenders re-verify income before closing, and a change found late is one of the most common reasons a deal collapses.
It depends on the lender’s queue, your income type, and how fast the appraisal comes back. The condition window from stage 3 does not pause while you wait.
Stage 5, closing, where your lawyer takes over and the money actually moves.
Pekoe Mortgages is a licensed brokerage in Ontario (FSRA #13321) and Alberta (RECA). This page is general information, not financial advice, and does not create a broker and client relationship.