Real Estate

How long do mortgage approvals typically take?

  • Last Updated:
  • Jan 1st, 2022 9:59 pm
[OP]
Deal Addict
Jan 26, 2016
2227 posts
2250 upvotes
Toronto, ON

How long do mortgage approvals typically take?

In days, how long do mortgage approvals typically take from receipt of all documents to approval?

Is it taking longer than usual these days?

Thank you.
29 replies
Deal Expert
Feb 29, 2008
19082 posts
17421 upvotes
Tarrana & The Ri…
It depends, really. Is it an easy mortgage? What I mean is, no rental properties, no shaky or low income, janky credit history/low score, etc...

I find brokers are much quicker...In my experience....it can take days. The actual bank will take quite a bit of time. Banks are just really thorough and just generally slower. Even if it's a straight-forward deal. I've seen approvals take weeks....especially with COVID...everything is taking longer.

Maybe someone here can confirm. I got my approval earlier in the year. Broker was much quicker than the bank but the bank asked for more things (rental properties).
[OP]
Deal Addict
Jan 26, 2016
2227 posts
2250 upvotes
Toronto, ON
JayLove06 wrote: It depends, really. Is it an easy mortgage? What I mean is, no rental properties, no shaky or low income, janky credit history/low score, etc...

I find brokers are much quicker...In my experience....it can take days. The actual bank will take quite a bit of time. Banks are just really thorough and just generally slower. Even if it's a straight-forward deal. I've seen approvals take weeks....especially with COVID...everything is taking longer.
Thank you.

Let's say it's a relatively straightforward case, verifiable full-time employment and nothing bad in credit report and owner occupied.

When you say days, how many days typically? 5?

When you say some take weeks is it when something goes wrong that needs to checked? And has covid made the process longer or is it many more people applying these days?

When you say broker.. the broker can't approve anything right? He/she pre-approves by lender does their own approval.
Deal Expert
Feb 29, 2008
19082 posts
17421 upvotes
Tarrana & The Ri…
WinterSleep wrote: Thank you.

Let's say it's a relatively straightforward case, verifiable full-time employment and nothing bad in credit report and owner occupied.

When you say days, how many days typically? 5?

When you say some take weeks is it when something goes wrong that needs to checked? And has covid made the process longer or is it many more people applying these days?

When you say broker.. the broker can't approve anything right? He/she pre-approves by lender does their own approval.
Broker before COVID I think quickest I got an approval is 2 days. During COVID less than a week. As for banks, I have multiple properties so looking for taxes and rental agreeents, etc can take time and sometimes I'm asked to clarify something so it could take longer but it's up to whoever is collecting your documentation to look it over properly. Few months ago I had someone at CIBC say they didn't have enough time to get an approval for me and close. That was maybe 2 weeks without even seeing any documentation or talking numbers. Maybe someone who got an approval within the last month or so can confirm.

I know for a fact TD is slow. I've dealt with them a couple times and they're slow whether it's COVID or not. Find RBC to be quick.

As far as approvals with a broker...it's the bank or whoever provide the loan that provides the approval.
Sr. Member
Feb 21, 2010
886 posts
262 upvotes
Scarborough
Sometimes banks have different SLA for broker channel versus direct channel. Hence brokers are able to turnaround quicker for few lenders.
Deal Fanatic
Jul 3, 2011
6517 posts
3788 upvotes
Thornhill
With my cleints this year none of whom are first time buyers. I'm finding that brokers for:

those looking to buy only: the usual broker qualification but no rate hold from the lender

those looking to sell and buy, Brokers are only going so far as to state what the seller as a buyer might qualify for. Nothing is coming from lenders unless there is a firm offer on the sale of their property.

Investors in multi-units: much less hassle

I am not dealing with mortgage brokers who specialize in delivering generic product or basic product.
Deal Addict
User avatar
Nov 30, 2005
1849 posts
1434 upvotes
Ottawa, ON
Ours took about a month going through BMO.

Most banks/lender will require an appraisal so that alone could take a week.

Recommend you go ask this question in the mortgage rate thread, plenty of mortgage brokers there, however from the recent responses I've seen, a week is out of the question, plan for 3+ weeks minimum.
Jr. Member
Jul 24, 2010
112 posts
84 upvotes
Toronto
I got one with Scotia MMS within a week and I have rental properties as well.

Key is to find a MMS that knows his/her stuff and also provide all documents from get go.
Sr. Member
Mar 14, 2018
946 posts
902 upvotes
GTA
I really find that it depends on the closing date. I'm pretty sure that the brokers/banks process them based on urgency. So if your closing date is far away, they likely won't complete it until 1-2 weeks before the date.
Deal Expert
Feb 29, 2008
19082 posts
17421 upvotes
Tarrana & The Ri…
watul wrote: I got one with Scotia MMS within a week and I have rental properties as well.

Key is to find a MMS that knows his/her stuff and also provide all documents from get go.
This is true. A week is excellent if you’re a brand new customer. Which bank was this?

I can not stress enough to deal with someone who knows wtf they’re doing. Do not use someone in branch who barely works on deals.
Jr. Member
Jul 24, 2010
112 posts
84 upvotes
Toronto
JayLove06 wrote: This is true. A week is excellent if you’re a brand new customer. Which bank was this?

I can not stress enough to deal with someone who knows wtf they’re doing. Do not use someone in branch who barely works on deals.
Scotia :-)
Deal Expert
Feb 29, 2008
19082 posts
17421 upvotes
Tarrana & The Ri…
watul wrote: Scotia :-)
Have dealt with them 3 times now. They're OK. I think they're douches though.
Deal Addict
Feb 24, 2008
2202 posts
715 upvotes
Does anyone have experience with RBC mortgage approval timelines? A RBC mortgage specialist submitted my application on Nov 19, he said he was expecting an approval by Nov 22, but as still nothing. He says it's in the queue? I am getting a bit nervous as I am closing new house on Dec 21 and existing one on Dec 29. I need bridge financing (have firm sale agreement) for a week plus about $400,000 mortgage. Both wife & I have good jobs and there are no credit issues. Can someone enlighten me on the process? Thx.
Sr. Member
Nov 8, 2011
754 posts
480 upvotes
Etobicoke
I had a pre-approval from TD, so I contacted the same mortgage broker at TD when I wanted to go ahead with a mortgage. He got back to me several months later lol
The pre-approval itself took nearly a month, despite having all my documents ready.

Ended up going with BMO, they took two weeks from the time I submitted my documents, very responsive and transparent about where the documents were and timelines.

Both were referrals.
Sr. Member
Feb 23, 2005
954 posts
72 upvotes
Lenders are very busy at the moment. Current timeline you are looking at 5 business days at least for most lenders (big banks, credit unions, B-lenders, etc). I am speaking from the perspective of a mortgage agent.
Deal Expert
Feb 29, 2008
19082 posts
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Tarrana & The Ri…
DToronto wrote: I had a pre-approval from TD, so I contacted the same mortgage broker at TD when I wanted to go ahead with a mortgage. He got back to me several months later lol
The pre-approval itself took nearly a month, despite having all my documents ready.

Ended up going with BMO, they took two weeks from the time I submitted my documents, very responsive and transparent about where the documents were and timelines.

Both were referrals.
TD is notoriously slow. I've dealt with them on 2 occasions and went with a different bank.
Jr. Member
Nov 22, 2011
105 posts
172 upvotes
Toronto
Has anyone been going through the process lately? How long does it take now?
Jr. Member
Nov 22, 2011
105 posts
172 upvotes
Toronto
JayLove06 wrote: TD is notoriously slow. I've dealt with them on 2 occasions and went with a different bank.
Was this a recent experience?
Deal Expert
Feb 29, 2008
19082 posts
17421 upvotes
Tarrana & The Ri…
Leevini wrote: Was this a recent experience?
Earlier this year and then some years ago. Both times...slow, slow, slow.
[OP]
Deal Addict
Jan 26, 2016
2227 posts
2250 upvotes
Toronto, ON
Leevini wrote: Has anyone been going through the process lately? How long does it take now?
The consensus seems to be bigger banks are very slow especially through their own representative. It's better with brokers, but even with them if your closing is not in the next few weeks they can drag it along for small documents to complete file.

Shitty experience all around.

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