Congratulations! You have just signed a sales agreement for your main or secondary residence or even for a rental investment. Before officially becoming the owner and receiving your deed of sale, you will most certainly need a mortgage.
Sometimes long procedures, which may vary in their duration for many reasons due to the economy, your banking establishment or your speed in gathering the necessary documents. So how long does it take to get a mortgage?
The compromise sets a period of 45 days to obtain a mortgage
When you sign a sales agreement with the seller for real estate, the notary enters a maximum period to obtain the mortgage. Generally, this period is 45 days, but it can be revised upwards or downwards upon request and agreement of the parties to the contract.
This unequivocal timeframe is what you have to get your precious sesame. Note that obtaining a mortgage is a suspensive clause of the sales agreement. If you receive refusal after refusal from the banks, the sale will be canceled. Also remember to put a maximum loan rate in the sales agreement to be well protected.
Time for research and negotiation with financial partners
Now that you have a compromise in your hands, time is running out. You will have to canvass banking establishments and put them in competition to find the most attractive loan, in line with your particular requests.
You have two solutions, namely to call on a broker specializing in real estate credit, or to negotiate the terms of your loan yourself with the banks.
Know that the broker will always be faster than you, because his professional status as intermediary in banking transaction allows him to have a network of privileged partners, who will study his request more quickly.
Nonetheless, a “physical” broker can take several thousand dollars to get your loan. A commission that is not always compensated by an advantageous rate, especially if you have a good record.
In this case, you can contact an “online” broker, the commissions he takes are reduced and you can obtain an attractive mortgage in a relatively short time.
If you want to do everything yourself, it is a good idea to use an online mortgage comparator to select the most relevant banking establishments on your file. We recommend that you do this early, even before the compromise is signed, so that you have two to three face-to-face meetings already scheduled.
Whichever method you use, you will receive an agreement in principle from your bank. You just have to wait for the loan offer …
Receipt of the loan offer: one week to three weeks on average
Even though you were relieved that you got a deal in principle, you start to worry that you won’t receive your loan offer a few days later.
Rest assured, this is completely normal. Your advisor must edit the loan offer, have it validated by his superior, then send it to the banking center in charge of loans. Round trips that can extend reception times by several days, depending on the speed of each on the one hand, and postal times on the other hand.
Usually you will receive the loan offer at home within one to three weeks. But it’s not over, you can’t immediately sign the loan offer …
Scrivener Law 2: 10-day cooling-off period
Here is the loan offer at home, enthroned on the living room table or on a moving box. You’ve read it, it’s signed and put in a stamped envelope, but you still have to wait.
Indeed, the Scrivener 2 (LS2) law, for the sake of protecting the borrower and any persons acting as surety, imposes a cooling-off period. This period, said to reflect, is 10 days from the day after receipt of the loan offer.
Concretely, if you receive your loan offer on the 1ster September, the next day being September 2, you must count ten days full of reflection. As your cooling-off period expires in the evening, it will end on the evening of September 11. You will be able to return the loan offer, initialed and signed to the bank, from September 12 in the morning.
In total, the time to obtain a mortgage can be 6 weeks
You will understand, if there are two weeks of canvassing with banks, two weeks to receive the loan offer and two additional weeks for it to come back to the bank, we reach an average of six weeks of waiting. .
This period is sometimes longer, due to a postponed appointment, a last minute impediment or forgetting, a strike, public holidays, or simply because your bank has a lot of files to manage at the same time during certain busy periods.
This is why we recommend that you, in order to live this period with as little stress as possible, extend the period mentioned in the compromise to 60 days, for your comfort as for that of the seller.