Mortgage Financing in a Competitive Housing Market.

Matthew Chan • February 24, 2021

Canada is an interesting place to buy a property right now. If you’ve paid attention to the media at all over the last few weeks, you’ve probably heard that…

  • Many people are still out of work due to COVID-19.
  • The bank of Canada has forecasted rates will stay low for a long time.
  • Although house prices keep rising, we may be in for a housing crash sooner than later.


While more recently, the media is reporting that…

  • Canadian house prices are hitting record highs with no stop in sight.
  • There is very little inventory available in housing markets across Canada.
  • This week, bond rates have started to rise, and we can likely expect lenders to follow with an increase in fixed rates.


Needless to say, things can change pretty quickly. And while talking about the “Canadian housing market” is a lot like talking about the “weather in Canada”; it varies regionally and will be significantly different depending on where you live, one thing seems to be true, if you’re looking to buy a property, you can expect a competitive housing market.


Some markets will be hotter than others, but buying a home in a competitive housing market can be difficult.


You know you’re in a hot housing market when…

  • Properties sell within days of listing on MLS.
  • Properties are selling at or above the asking price.
  • Properties are selling with competing offers.
  • Properties are selling with competing offers well over the asking price.


Unfortunately, this can make you feel…

  • Rushed to make decisions out of your comfort zone.
  • Like you are being priced out of the market.
  • Like you won’t ever find a property.
  • Like you may need to change up your strategy to prevent being outbid by competing offers.


Now, if you get to this point in your home buying journey, you might begin to feel desperate. Understandably so. You might even look for ways to get your offer accepted and consider taking risks you wouldn't otherwise take. You may even consider (or be encouraged to) submit a subject-free offer.


While writing a subject-free offer might seem like a good solution to get your offer accepted, you need to know that it comes with significant risk. The biggest risk you take is that your deposit could be forfeit if you write an unconditional offer and your financing is declined.


The only time a subject-free offer is without risk is when you have enough money to purchase the property with the cash you have in the bank. So if you don’t have the cash to buy the house outright, the smart move is to mitigate your risk by including a “subject to financing” clause in the offer to purchase.


Mortgage financing is never guaranteed. The reason mortgage financing isn’t guaranteed is that securing mortgage financing is not only dependent on you the applicant, but also on the condition and value of the property. So even if you have the most stable income, an incredible credit history, and a large downpayment, if you need a mortgage, all lenders will assess the property’s condition and value before agreeing to mortgage financing.


Their scrutiny of the property is the same regardless of whether you include a subject to financing clause or make your offer unconditional.


Unfortunately, if you’re in a competitive situation, this is where you have to make quick decisions and put your best offer forward, but this is also when you’re at the highest risk of making mistakes. There are many reasons a lender can decline your mortgage application; here are just a few of them.

  • The property doesn’t appraise for what you offer, forcing you to come up with considerably more for a downpayment. This is especially true in competitive situations.
  • The MLS listing contains compromising information.
  • The property was a former grow op or drug lab.
  • The property has a special assessment pending.
  • The condo insurance docs aren’t acceptable to the lender.
  • The property doesn’t meet zoning or size requirements.
  • The lender finds out there is asbestos, aluminum or knob and tube wiring, or an underground oil tank.
  • Or anything else they deem too risky to lend money.


So what can you do? Well, the best place to start is to make sure you have all your ducks in a row. Here are things to consider.

  • Do you have a mortgage preapproval in place?
  • Do you have all the supporting documents submitted to your mortgage professional
  • Are you working with a mortgage professional who has outlined the process, including how long they need to arrange financing?
  • Do you have rock-solid personal guidelines for making an offer? This will help you to avoid making an emotional last-minute decision.
  • Are you working with a real estate professional who is willing to help you stick to those personal guidelines?


Securing mortgage financing in a competitive housing market is tough. So if you find yourself without a concrete plan, please contact us anytime. We deal with high-stress situations like this regularly, and we would love to provide you with the counsel you need. 

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By Matthew Chan • February 18, 2026
For most Canadians, the down payment is the biggest hurdle to homeownership. A down payment is the initial amount you contribute toward your property purchase, while the lender covers the rest through a mortgage. By law, Canadian lenders can only finance up to 95% of a property’s value, which means you’ll need at least 5% down to qualify. If you’re putting down less than 20%, your mortgage must be insured through one of Canada’s three default insurance providers— CMHC, Sagen (formerly Genworth), or Canada Guaranty . This insurance comes at a cost, but it can be rolled into your mortgage amount. The less you put down, the higher the premium. Since saving a down payment can feel overwhelming, it helps to know the different sources you can draw from. Here are the most common options available to Canadian homebuyers: 1. Savings & Personal Resources The most straightforward source is your own savings. Lenders will ask to see a 90-day history of the funds in your account. Any large deposits outside of regular payroll must be explained with documentation—such as the sale of a vehicle or a transfer from an investment account. This requirement isn’t just red tape; it’s part of Canada’s anti-money laundering rules. 2. Proceeds from the Sale of a Property If you’ve recently sold another home, you can use the proceeds as a down payment on your new purchase. Proof of the sale—such as the final statement of adjustments from your lawyer—will be required. 3. RRSP Home Buyers’ Plan (HBP) First-time buyers can withdraw up to $35,000 each (or $70,000 as a couple) from their RRSPs to put toward a down payment under the federal Home Buyers’ Plan . The funds are withdrawn tax-free, but they must be repaid over a 15-year period. This is a popular option for buyers who have been steadily contributing to their retirement savings. 4. Gifted Down Payment With today’s housing prices, many buyers turn to family for help. A parent or immediate family member can provide a gift that makes up part—or even all—of the required down payment. The lender will require a signed gift letter confirming that the money is a true gift (with no repayment expected) and proof that the funds have been deposited into your account. 5. Borrowed Down Payment In some cases, you may be able to borrow your down payment. This option is usually available only if you have strong credit and sufficient income. The payments on the borrowed funds are factored into your debt service ratios, so affordability is key. Lenders typically use 3% of the outstanding balance when calculating the additional payment. The Bottom Line A down payment doesn’t have to come from just one source—it can be a combination of savings, gifted funds, RRSPs, or other resources. What matters most is being able to show where the money came from and that it meets lender requirements. If you’d like to explore your options or learn how much you might qualify for, it’s never too early to start the conversation. Connect with us today—we’d be happy to help you create a plan and take the first steps toward homeownership.

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By Matthew Chan • February 11, 2026
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By Matthew Chan • February 4, 2026
You’ve found the right home, your offer’s been accepted, and your financing is approved—congratulations! But before you can pick up the keys and celebrate, there’s one more important stage: the closing process. Closing is the final step in your homebuying journey, where all the paperwork, legal details, and financial transactions come together. It can feel overwhelming if you don’t know what to expect, but with the right preparation, closing can be smooth and stress-free. Here’s a step-by-step guide to help you understand the process. Step 1: Hire a Lawyer or Notary A real estate lawyer (or notary, depending on your province) handles the legal side of closing. They will: Review the purchase agreement and mortgage documents Conduct a title search to confirm the seller has the legal right to sell the property Ensure the mortgage lender is properly registered on the title Handle the transfer of funds between you, the lender, and the seller Your lawyer or notary will be your main point of contact during closing, so choose one you trust and who communicates clearly. Step 2: Finalize Your Mortgage Your lender will send the mortgage instructions directly to your lawyer or notary. At this stage: You’ll provide proof of property insurance (lenders require this before releasing funds) You’ll confirm your down payment and closing costs are available in your lawyer’s trust account The lawyer will prepare all documents for your review and signature Step 3: Pay Closing Costs Closing costs typically range from 1.5% to 4% of the purchase price. These can include: Legal fees Title insurance Land transfer tax (where applicable) Adjustments for property taxes or utilities prepaid by the seller Home inspection or appraisal fees (if not already paid) Your lawyer will provide a final statement of adjustments so you know exactly how much is due on closing day. Step 4: Sign the Paperwork A few days before closing, you’ll meet with your lawyer or notary to sign all the necessary documents, including: Mortgage agreement Title transfer Insurance confirmations Statement of adjustments Bring valid government-issued ID to this appointment. Step 5: Transfer of Funds On the day of closing: Your lender sends the mortgage funds to your lawyer Your lawyer combines these funds with your down payment and pays the seller Legal ownership of the property is transferred into your name The lender is registered on title as a secured creditor Step 6: Get the Keys! Once the paperwork is filed and the funds have cleared, your lawyer will confirm that the transaction is complete. You’ll then get the keys to your new home—officially making it yours. The Bottom Line The closing process is a series of important steps, but with the right team in place, it doesn’t have to be stressful. By working closely with your mortgage professional and lawyer, you’ll have guidance every step of the way—from signing the documents to turning the key in the front door. If you’d like help preparing for the closing process—or want a clear breakdown of your own closing costs— connect with us today.