After you apply for a mortgage, the waiting game begins. While big banks can take weeks or even a month, private lenders can often give you an approval in just 24-48 hours. Many people ask, “how long does a mortgage approval take?”, and the answer depends entirely on the lender you choose. Let’s break down the two different timelines you can expect.
Banks vs. Private Lenders
Not all lenders are built for speed. In fact, the difference in timing between a traditional bank and a private lender can be weeks, or sometimes even more than a month.
The Traditional Bank Timeline (Weeks to a Month or More)
The big banks have a very long and complicated process. Your application has to go through many steps, including underwriters and credit committees, and they have very strict rules. Because of this, the average mortgage approval process with a bank can take anywhere from a few weeks to over a month.
The Private Lender Timeline (Days, Not Weeks)
Private lenders can offer a much faster path to getting your mortgage approved. We are able to make decisions much more quickly because we focus on your property’s value and equity, not just your income or credit score. This is the real secret to fast mortgage approval.
At Seven Lending, we can often provide approvals in as little as 24-48 hours. This is the main advantage of working with private lenders.
The Standard Mortgage Approval Process Step-by-Step
To better understand how long it takes to get a mortgage approved, it helps to know the steps. This is the typical journey your application will take.
What Can Slow Down Your Mortgage Approval?
Several common problems can cause frustrating delays in the approval process. If you know what they are, you can often avoid them.
- Incomplete Documents: This is the number one reason for mortgage delays. Missing or incorrect paperwork will bring everything to a halt.
- Complex Income: If you are self-employed or have income that isn’t from a simple T4, banks will take much longer to review your file.
- Property Issues: If the appraiser finds any problems with the property, it can slow things down while the lender investigates.
- A Low Down Payment: Lenders often take more time to review applications with a smaller down payment. However, there are still options to get a mortgage without a large down payment.
How to Speed Up the Mortgage Process
You have more control over the timeline than you might think. Here are a few simple tips that can help you get a faster approval.
Your Mortgage Approval Checklist
Note: Choosing a lender like Seven Lending that understands complex situations can make the entire process much smoother and faster.
Conclusion
So, how long does a mortgage approval take? If you go to a traditional bank, you could be waiting for a month or more. If you work with a private lender, it can be just a few days. The most important factor is choosing a lender that is built for speed and understands your unique financial situation.
If you need a fast, common-sense approval, you don’t have to be stuck waiting for the banks. A private lender can provide the funds you need on a timeline that works for you.
About the Author:
As the Co-Founder of Seven Lending, Raghav Manchanda is passionate about helping BC homeowners who have been overlooked by the big banks. He created Seven Lending to offer a simpler, more flexible path to getting a mortgage. His expertise lies in using a property’s equity to create fast, common-sense solutions for his clients.