Mortgage Pre-Approval: What to Prepare Before You Shop

Pre-approval is the difference between shopping with a number and shopping with a hope. Here's what it involves and how to walk in prepared.

What lenders will ask for

Have these ready and the process is a conversation instead of a scavenger hunt:

• Government ID and your Social Insurance Number (for the credit check).
• Proof of income — recent pay stubs, or two years of notices of assessment and a T4 or stubs if you're self-employed.
• Employment details — position, tenure, and employer contact.
• Debts and obligations — car loans, student loans, credit cards, support payments, and any existing mortgages.
• Down payment proof — where it is and how long it's been there. Large recent deposits need a paper trail.

What pre-approval actually guarantees

• It's a real credit check and a real number — subject to the property appraising and nothing material changing in your finances.
• The rate is held for a window, not forever. Rate-hold periods vary by lender; ask for the exact dates.
• It expires. Most pre-approvals lapse after 90 to 120 days. If your search runs long, refresh it.

The qualifying rate

Lenders must qualify you at a rate higher than the one you'll actually pay — a stress test designed to prove you could still carry the mortgage if rates rise. The exact qualifying rate is set by the regulator and moves over time, so ask your lender what they're using today rather than quoting a number you read last year.

Programs worth asking about

First-time buyers have two federal tax tools worth understanding: the Home Buyers' Plan, which lets you withdraw from an RRSP toward a first home, and the Tax-Free First Home Savings Account, which lets you save for a first home tax-free. Both have contribution and withdrawal rules that get updated — check the current limits on canada.ca or ask your financial advisor before planning around a number.

Pre-approval vs. pre-qualification

A pre-qualification is an estimate based on what you tell the lender. A pre-approval verifies it. When you're competing for a home, only one of those is worth mentioning in an offer.

Before you call the lender

1. Pull your credit report and fix any errors.
2. Pay down revolving balances — utilization moves the number.
3. Don't open new credit, change jobs, or make large purchases until after closing.
4. Gather the documents above into one folder.

Once you have the number, search with it →