Mortgage Pre-Approval in Canada: Everything You Need to Know

What is a Mortgage Pre-Approval?

A mortgage pre-approval is a conditional commitment from a lender confirming how much they'll lend you and at what rate. It's based on a full review of your income, credit, and assets — not just a quick estimate.

Pre-Approval vs Pre-Qualification

• Pre-qualification: Quick estimate based on self-reported info. Not verified. Not reliable.
• Pre-approval: Full credit check, income verification, document review. Lenders take it seriously.

Always get a full pre-approval before making an offer on a home.

Documents You Need

• 2 most recent pay stubs
• T4 slips for last 2 years
• Notice of Assessment (NOA) for last 2 years
• 3 months of bank statements (showing down payment savings)
• Government-issued ID
• Letter of employment confirming salary and tenure
• If self-employed: T1 generals and NOAs for 2 years, business financials

How Long Does Pre-Approval Last?

Most Canadian lenders hold a pre-approval rate for 90–120 days. If you find a home within that window, you're protected at your pre-approved rate even if rates rise.

Does Pre-Approval Affect Your Credit Score?

Yes — getting a mortgage pre-approval triggers a "hard inquiry" on your credit report, which can reduce your score by 5–10 points temporarily. However, multiple mortgage inquiries within a 14-day window typically count as a single inquiry, so shop around quickly.

Should You Use a Bank or Broker for Pre-Approval?

Get pre-approved through a mortgage broker. They submit to multiple lenders with a single credit check and can often find better rates than going directly to a bank. The pre-approval is free and there's no obligation.

What Happens After Pre-Approval?

1. Shop for homes within your pre-approved budget
2. Make an offer with a financing condition
3. Submit final documents to your lender for full approval
4. Lender issues commitment letter
5. Close with your lawyer/notary

⚠️ This article is for informational purposes only. Not financial advice. Canada Mortgage Rates is not a licensed mortgage broker. Always verify with a licensed professional.