Pre-Approval

A pre-qualification is usually done over the phone and is meant to see if you meet basic financial criteria, based most often on the borrower’s word-of-mouth. A true mortgage pre-approval is when a mortgage broker or bank/lender has collected documentation from you and has conducted a full investigation into your assets, debt, and credit history to determine whether you can qualify for a mortgage, and how much you may be able to qualify for. A mortgage pre-approval typically allows for an interest rate lock, whereby allowing a pre-approved buyer to have up to 120-days to shop for a home while knowing their interest rate is being held, regardless whether rates are rising.

It’s very important to understand the difference between a mortgage pre-qualification and a mortgage pre-approval

Why a mortgage pre-approval is important in Canada

Why is a mortgage pre-approval important in Canada?

In Canada, many of the provinces have highly competitive real estate markets. If you plan to finance a home purchase, getting a mortgage pre-approval completed is extremely important, especially when multiple buyers may be competing for the same property at times.

  • Your real estate agent should be given a copy of your pre-approval, so they know your maximum purchasing power and any specific conditions that are required.
  • Sellers find buyers with a pre-approval more attractive compared to a pre-qualification, because it means the mortgage broker or bank/lender has done more due diligence to determine whether you are financially qualified for the loan.
  • Pre-approvals allow you to lock in an interest rate while you shop for a home.

What documents should I have ready to provide for pre-approval?

We can help you with your pre-approval!

You just visited a property and decided you want to make an offer right away, but it’s in the evening or on a Saturday afternoon, and most lenders are out of the office. Dave and his team understand that real estate doesn’t take weekends off. We are available to execute a pre-approval when you need us. Our goal is to ensure you win.

How can I begin the pre-approval process?

Utilize our mortgage calculator below and complete our online mortgage application.

Canadian mortgage calculator

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Need assistance with your application? Complete the form and we will begin an application manually for you.