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An underwriter is the lender-side professional who evaluates a mortgage application against the lender’s credit policy and, for insured deals, the default insurer’s eligibility rules, before approving or declining the loan.
An underwriter works for the lender — or, for high-ratio files, for the default insurer — reviewing income documentation, credit history, the property, and the borrower's debt-service ratios. The decision weighs the five Cs of credit alongside the lender's or insurer's specific policy.
Once an underwriter signs off, the file moves to a conditional approval, and once every condition is satisfied, to a commitment letter. Mortgage brokers and agents assemble and submit the file, but it's the underwriter — not the broker — who ultimately approves, declines, or sets conditions on it.
Works for the lender or insurer: underwriters are employed by the lender (or, for insured deals, CMHC, Sagen, or Canada Guaranty) rather than by the brokerage arranging the deal.
Applies the lender's and insurer's rules: underwriting decisions weigh the five Cs of credit, debt-service ratios, and — for high-ratio files — the default insurer's eligibility criteria.
Issues the approval documents: an underwriter's sign-off produces the conditional approval and, once conditions are satisfied, the commitment letter.
Brokers package, underwriters decide: mortgage brokers and agents assemble and submit the file, but the underwriter is the one who approves, declines, or sets conditions on it.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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