What Is a Mortgage Pre-Approval?
A mortgage pre-approval is a lender's written commitment to lend you a specific amount at a specific interest rate, subject to verification of the property you're buying. It's different from a pre-qualification:
| Feature | Pre-Qualification | Pre-Approval |
|---|---|---|
| Credit check | No | Yes (hard inquiry) |
| Income verification | Self-reported only | Documents reviewed |
| Rate protection | No | 90–120 days |
| Seller credibility | Low | High — shows you're serious |
| Time required | Minutes | 1–3 business days |
| Used to make offers? | Not recommended | Yes |
In Ontario's competitive market, a pre-approval signals to sellers that you're a serious, qualified buyer. In multiple-offer situations, it can make the difference.
Documents You'll Need
Prepare these before you start. Having them ready speeds up the process significantly:
Self-employed: add T1 General returns (2 years), business registration, and accountant confirmation letter.
How Long Does Pre-Approval Take?
With a mortgage broker and complete documents, the typical timeline is:
Incomplete documents are the #1 cause of delays. Having everything ready upfront is the fastest way to get approved.
Affordability Calculator
See how much you can be pre-approved for before submitting your application.
How to Maximize Your Pre-Approval Amount
Several factors affect the size of your pre-approval:
- Reduce existing debt: Pay off credit card balances before applying. Monthly debt obligations directly reduce your maximum mortgage qualification.
- Increase your down payment: More down means a smaller mortgage needed. On homes near $1M, 20% down eliminates CMHC insurance and opens additional lender options.
- Add a co-borrower: Adding a co-applicant (spouse, parent) combines incomes and can significantly increase qualification.
- Improve your credit score: Scores above 760 qualify for best rates and maximum amounts. Review your credit report for errors before applying.
- Avoid new debts before applying: Don't finance a car or open new credit accounts in the 6 months before your mortgage application.
Your Rate Hold — 90–120 Days of Protection
A pre-approval holds your rate for 90–120 days. Here's how the rate hold works:
- If rates rise: Your pre-approved rate is protected. You pay the lower rate.
- If rates drop: Most lenders will honour the lower rate at closing.
- If you don't find a home: You can re-apply when the hold expires. No penalty.
- Multiple holds: A broker can hold rates from multiple lenders simultaneously, giving you options without multiple credit inquiries.
Timing tip: Start your pre-approval 1–2 weeks before you begin actively looking at homes. This gives you protection from day one without wasting your hold window.
Why Get Pre-Approved Through a Broker
Getting pre-approved through a broker means one application, one credit check, and access to rates from 30+ lenders. Going directly to one bank means one option — and their goal is to maximize their margin, not minimize yours.
One application, many lenders
Your application is submitted to the best-fit lenders for your profile simultaneously.
No cost to you
Broker pre-approval is completely free. The lender pays the broker when your mortgage funds.
Rate competition
Lenders compete for your business, which drives better rates than any single lender can offer.
Expert guidance
Your broker advises on term length, rate type, and structuring to match your goals.