The stages of real estate credit

Getting a mortgage doesn't happen in just a few days. It's better to anticipate each of the steps!

Step 1 : The Sales Agreement

You've found your dream apartment or house. As you've done your due diligence, this property is undoubtedly within a budget that aligns with your affordability!

💡 Calculate your budget using our online calculator

Now it's time to sign a sales agreement. This document, like a "pre-contract," serves as evidence of the commitment of both parties to proceed with the sale of the property. It is with this document that you can approach banking institutions to apply for a loan.

Step 2 : Choose Your Bank

If you have long-term and trusted relationships with your regular bank, it will probably be able to offer you the best terms. However, don't hesitate to shop around to get the most advantageous interest rate.

Step 3 : Document Compilation

Once you've chosen your bank, you'll need to compile a complete loan application package. This package will include the sales agreement, an appraisal report if it's an older property, as well as your income and job stability documents.

💡 To estimate the monthly payments you'll be required to make, click here.

Step 4 : Bank Approval

The response time from the bank will vary depending on their dossier review process. The loan amount will also have an impact. If the decision is favorable, your bank will provide you with a Pre-Offer of Credit, which you can confirm after a 10-day reflection period.

Step 5 : Credit Agreement

The signing of the credit agreement will allow the bank and the notary to collaborate in order to carry out the steps needed to finalize the purchase. The notary will then provide the bank with a letter of commitment for mortgage registration. The bank will provide a check for the borrowed amount.

Step 6 : Final Sales Agreement

Next is the signing of the final sales agreement with mortgage assignment between the seller, the buyer, and the bank. Following this, the notary can proceed with the registration procedures and the transfer of funds to the seller. You will receive your property certificate a few days later.

All that will be left is to prepare for the housewarming party! 🎉

Salima Hamrini Editor and journalist specializing in real estate.

22 Nov 2023