Pre-qualification vs pre-approval
Pre-qualification is a rough estimate based on numbers you self-report — quick, but not verified and not binding. Pre-approval is a deeper review where the lender confirms your income, pulls your credit, and commits (conditionally) to a specific amount and rate.
Sellers and agents take a pre-approval far more seriously, especially in competitive markets.
Documents you will need
Having your paperwork ready makes pre-approval fast — often same-day. Gather these before you apply.
- Proof of income: recent pay stubs, T4s, and Notices of Assessment (or business financials if self-employed).
- Proof of down payment: bank or investment statements showing the funds and a 90-day history.
- Identification and details of current debts (loans, credit cards, lines of credit).
- Consent for the lender to pull your credit report.
How long it lasts and what it locks
A pre-approval typically holds your quoted rate for 90 to 120 days. If rates rise during that window, you keep the lower rate; if they fall, most lenders will honour the lower rate when you finalize.
Remember that the dollar figure is a maximum, not a target. The amount you are approved for is set by the stress test, so budget for the payment you are comfortable with, not the largest mortgage available.
Protect your credit and your approval
Once you are pre-approved, keep your financial picture steady until closing — lenders re-check before funding.
- Avoid new loans, big purchases, or co-signing while you shop.
- Do not change jobs or income sources if you can avoid it.
- Try to keep mortgage rate shopping within a short window so multiple credit checks count as one inquiry.