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Loan Origination

Learn what loan origination is in Canadian mortgage lending, what steps are involved, and how borrowers complete the approval and funding process.

Loan Origination

May 30, 2025


What is Loan Origination?

Loan origination is the full process of creating, reviewing, and approving a new mortgage or loan, from initial application to final funding.

Why Does Loan Origination Matter in Real Estate?

In Canadian real estate, loan origination involves multiple steps and stakeholders, including the borrower, broker, lender, and underwriter.



Steps in loan origination include:



Origination may involve fees, especially in private or complex lending scenarios. These fees should be disclosed up front in writing.



Understanding loan origination helps borrowers navigate the mortgage process and prepare documentation efficiently to avoid delays.

Example of Loan Origination in Action

The borrower completes the loan origination process, including credit review and appraisal, and receives funding two days before closing.

Key Takeaways

  • Covers full mortgage processing from start to finish.
  • Includes documentation, underwriting, and funding.
  • May involve fees and third-party services.
  • Critical to securing home financing.
  • Must comply with regulatory timelines.

Related Terms

  • Mortgage Application
  • Underwriting
  • Lender Disclosure
  • Broker Disclosure
  • Origination Fee

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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