The time frame required for obtaining a mortgage undertaking

The promise to purchase includes a deadline by which the seller must receive a copy of the lender's undertaking to grant the buyer a loan that meets the specified conditions. The deadline must take into account weekends and statutory holidays and meet lenders' requirements.  It is calculated in consecutive calendar days, including weekends and statutory holidays.

A period that is too short may limit the choice of lenders, compromise the loan, or force the buyer to request an extension, which may be refused by the seller.

Factors to consider when setting the deadline in the mortgage undertaking clause.

• The volume of requests at this time of the year.
• The buyer's professional status and sources of income.
• Steps already taken by the buyer with the lender or mortgage broker, such as obtaining mortgage pre-approval and providing required documents.
• Obtaining the documents required by the buyer to examine a mortgage application.
• The need for an appraisal by a certified appraiser, mortgage insurance, or other conditions like an inspection report.

The buyer should take steps to obtain a loan before presenting a promise to purchase. If the buyer deals with a mortgage broker, he or she must respect any exclusivity contract signed with the broker. Otherwise, the real estate broker may also refer the buyer to a qualified professional, depending on the type of loan required.