Why The Property Matters

Carola Singer • July 29, 2020

When looking to qualify for a mortgage, typically a lender will want to review four main areas of your mortgage application. Income, credit, downpayment/equity and the property itself. Assuming you have a great job, excellent credit, and sufficient money in the bank to qualify for a mortgage, if the property you’re looking to purchase isn’t in good condition, it’s going to be hard to arrange mortgage financing.

Property matters because the property you are looking to purchase is the collateral the lender holds in case you default on your mortgage.

You can expect that any lender will make every effort to ensure that any property they finance is without defect. Lenders want to see that a property is what is called “prime and marketable”. In the rare case that you happen to default on your mortgage, they want to know that if they have to repossess, they can liquidate (sell off) the property quickly and recoup their money.

So to establish value, an appraisal is always required on every purchase. Now, if your mortgage is insured through an insurer like CMHC or Genworth, they will have used an automated system to appraise the property (you might not even have known an appraisal was done). For conventional mortgage applications, a physical appraisal; where an actual appraiser goes to the property, is required. Typically your broker will order this, and you will be responsible for the cost. the appraiser is not only assessing the property's value, but rather looking at the bones of the property itself. This is where problems can arise.

Why is this important to know? Well, because a lot of people believe that because they have a great job, excellent credit, and money in the bank, they should be able to buy anything they like. Without understanding that the property matters, some people have gone as far as to put in an offer to purchase without a condition of financing. And have lost their deposit, because the lender wasn’t satisfied with the state of the property and didn’t give them a mortgage.

You don't want to be in this position. So remember, when looking at the overall mortgage application, the property should be considered, because the property matters!

If you have any questions; about a particular property or anything else, please don’t hesitate to contact me anytime, I’d love to work with you!

RECENT POSTS 

Bank of Canada Holds Rate at 2.25% — September 2, 2026

By Carola Singer • September 2, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. While Canada's economic recovery is broadening, a new layer of uncertainty has entered the picture. Here is what happened and what it means for your mortgage.

Need Funds Between Buying and Selling? Here’s How Deposit Loans & Bridge Financing Help

By Carola Singer • August 26, 2026
You’ve outgrown your current home. It no longer fits your life, so moving makes sense. And you’re not interested in juggling two properties. Selling first and buying something new feels like the right move. Ideally, you want possession of the new home before leaving the old one. That overlap makes moving easier, reduces stress, and gives you time to paint, renovate, or settle in before the boxes arrive. But there’s a common challenge. What if the down payment for your next home is tied up in the equity of the one you’re selling? That’s where bridge financing comes in. How bridge financing works Bridge financing temporarily unlocks equity from your current home once it has a firm sale . It bridges the gap between selling your existing property and purchasing your next one, allowing you to use that equity toward your down payment. What about competitive markets? In a hot market, a strong offer often means a larger deposit . If you don’t have that cash sitting in your account, but you do have equity, a deposit loan can help you compete with confidence. The non-negotiable requirement To qualify for bridge financing or a deposit loan, your current home must have a firm, unconditional sale . No firm sale = no bridge or deposit loan. Lenders need certainty to calculate available equity and manage risk. Bottom line A firm sale is the key that unlocks bridge financing and deposit loans. If you’re planning a move and want to understand how these options could work for you, let’s talk. I’m always happy to walk you through your options and help you plan your next step with confidence.