A mortgage commitment letter is the lender's written offer. It tells you the loan terms and, usually, the conditions you still have to meet. Getting one is a real step forward. It does not mean every condition has been cleared or that the funds are ready for closing.
If you are buying in Ontario, read the letter with two questions in mind: What am I agreeing to? What is still outstanding? The answers matter more than the word “approved” at the top of a page.
What is different from pre-approval?
Pre-approval usually happens before you have a specific home under contract. It can help you set a budget, but it is not a promise to finance whichever property you choose. A commitment follows the fuller application and names a lender's proposed loan for the transaction. It can still carry conditions about you, the property and the closing.
Ontario's Financial Services Regulatory Authority (FSRA) says a lender's commitment is based on the information and documents supplied. A change or an undisclosed obligation can require the lender to revisit the decision. If you want the earlier steps explained, our pre-approval versus final approval guide covers that distinction.
Read the terms, not just the rate
Start by checking that the lender, borrowers, property address and mortgage amount are correct. Then look at the rate type, term, amortization, payment amount and payment frequency. Ask whether any fee is due to the lender or brokerage and what would happen if you pay out or change the mortgage early.
That list is a starting point, not a substitute for the actual document. The Financial Consumer Agency of Canada (FCAC) describes information that federally regulated lenders must disclose, including payments, interest, prepayment privileges, penalties and other charges. Different lender types can follow different disclosure rules. In Ontario, a brokerage also has its own written disclosure duties. Ask your mortgage professional to show you which document answers each question.
Turn every condition into an owner and a deadline
This is the part I would go through line by line with you. A condition is not just paperwork to collect. Someone needs to confirm it has been reviewed and accepted by the lender.
Common examples include updated income or employment documents, proof of down-payment funds, a property appraisal, insurance evidence and documents from your lawyer. Your letter may have different conditions. Do not assume an item is satisfied because you sent it to an agent or uploaded it to a portal.
For each condition, write down:
- What exactly is required? If “satisfactory appraisal” appears, ask who orders it and whether the lender has accepted the result.
- Who is responsible? Some items come from you; others come from the lender, insurer, appraiser or lawyer.
- When is it due? Compare the lender's deadline with your purchase agreement and closing date.
- Who confirms it is cleared? Ask for an updated written status from the mortgage professional or lender.
Imagine your commitment says “subject to appraisal.” You send your pay stubs today, but the appraisal has not been completed. Your income documents may be in good shape while the property condition remains open. Those are two separate facts. Our guide to a low appraisal explains why the property review can change the financing plan.
Keep the financing-condition deadline separate
If your purchase agreement contains a financing condition, that condition has its own deadline and legal consequences. A lender's commitment date, the date you sign it, the date a condition is cleared and the date you waive a purchase condition are not automatically the same milestone.
Ask your mortgage professional for a written list of outstanding lender conditions before the purchase-agreement deadline. Then speak with your real-estate lawyer about what the agreement requires and when. A verbal “it looks fine” is progress, but it is not the same as a clear written status. Our financing-deadline guide walks through that timing risk.
What should you ask before signing?
You can send this short note to the person presenting the commitment:
A message you can copy: “Please confirm the lender name, mortgage amount, rate type, term, amortization, payment and all fees. Which conditions are still outstanding, who handles each one, and what is the deadline? Please tell me when the lender has accepted each item, and flag any change that could affect the offer before closing.”
If you used an Ontario mortgage brokerage, ask for its written disclosures about costs, material risks, relationships and any conflicts. FSRA explains that you are entitled to at least two business days to review the mortgage disclosure statement before the earlier of signing the mortgage agreement or mortgage instrument; you may choose to shorten or waive that period. Do not waive review time simply because the closing date feels close. If the contract or purchase agreement is unclear, ask your lawyer for advice before you sign or waive anything.
The practical goal is simple: know what the lender has offered, what you still owe it, and who will tell you when the conditions are cleared. A signed commitment can be an important milestone. The closing still depends on the terms and remaining work in your own file.
General education for Ontario readers, not individual mortgage or legal advice or a promise of funding. Terms, conditions, fees, qualification and timing depend on the lender, contract, application and property. Hanif Hosseini, Mortgage Agent Level 1, M26001653. Mortgage Architects, brokerage licence #12728. Serving Ontario, based in Oakville.