Mortgage Journey · Stage 4 of 9

Underwriting and Your Documents

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.


The document checklist

Pekoe Mortgages is licensed in Ontario (FSRA #13321) and Alberta (RECA). This stage page routes you to the answer. It does not replace it.

Where you are

What this stage decides

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.

Your steps

What happens in this stage, and who does each part

The sequence for stage 4. Very little of it is in your hands once the documents are in.
StepWho does itWhat it produces
Submit the full document packageYou, chased by your brokerA file the underwriter can actually work
Verify income against the documents, not the applicationLenderConfirmed qualifying income, which can differ from the pre-approval
Order and complete the appraisalLender, through an approved appraiserA value the loan is calculated against
Review condominium documents, where they applyLender and your lawyerConfirmation the building itself is financeable
Issue the mortgage commitmentLenderA conditional offer of financing, in writing
Satisfy the lender’s own conditionsYou and your brokerA commitment with nothing outstanding

A commitment is not the same as a pre-approval, and it usually arrives with conditions of its own attached.

Who is involved

Who you deal with at this stage

You

Producing documents quickly, and disclosing anything that has changed since the pre-approval.

Your mortgage broker

Packaging the file, answering the underwriter’s questions, and moving it to a second lender if the first declines.

The underwriter

The person at the lender who decides. You never speak to them, which is why how the file is presented matters.

The appraiser

Appointed by the lender, not by you. Valuing the property the loan is secured against.

Documents needed

What the underwriter asks for

Stage 4 document set. The full list depends on your income type and the property.
DocumentWhy it is neededWhat delays it
Income verification matched to your employment typeSalary, hourly, commission and self-employed income are each assessed differentlyVariable income, a recent job change, or a probation period
Down payment historyThe source of funds has to be traced, not just the balance shownTransfers between accounts shortly before closing
The signed purchase agreement and listingThe lender assesses the specific property and priceAmendments that have not been sent on
Access for the appraisalThe appraiser has to get into the propertyTenants, rural locations, limited appraiser availability
Condominium documents, where applicableThe lender assesses the corporation as well as the unitThe corporation’s own turnaround

Read next

The answers behind each step

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.

Frequently Asked Questions

Can I still be declined after a pre-approval?

Yes. The pre-approval was based on your profile. Underwriting verifies it and adds the property, and either can change the answer.

What is a mortgage commitment?

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.

Who orders the appraisal and who pays?

The lender orders it through an approved appraiser. The borrower usually pays, and a residential appraisal typically runs $300 to $600.

What if the appraisal comes in below the purchase price?

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.

My income is commission based. What changes?

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.

Should I tell my broker if my job changed?

Immediately. Lenders re-verify income before closing, and a change found late is one of the most common reasons a deal collapses.

How long does underwriting take?

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.

What is the next stage after this one?

Stage 5, closing, where your lawyer takes over and the money actually moves.

Keep going

Move to the next stage


All broker questions

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.