Mortgage Pre Approval
Why pre-approval matters and what lenders look at
Get Pre-Approved Before You Start Looking
A pre-approval tells you what you can actually borrow, locks a rate while you shop, and makes your offer credible to a seller. Looking at homes before you have one is how people fall for a house they cannot buy.
Pre-Qualified Is Not Pre-Approved
A pre-qualification is an estimate based on what you tell a lender. A pre-approval means they have actually verified your income, debts and credit, and committed to a rate hold. In a competitive situation, only one of those carries weight with a seller.
What a Lender Will Look At
The Number That Trips People Up
You have to qualify at the greater of your contract rate plus 2%, or 5.25% — not the rate you will actually pay. That is the stress test, and it is why the amount you are approved for is often lower than an online calculator suggested. Better to know that now than after you have fallen for a listing.
How Long It Lasts
A rate hold typically runs 90 to 120 days depending on the lender. If your search takes longer, it can usually be renewed — but your circumstances get re-checked, so avoid financing a car or opening new credit in the meantime. That is the most common way a pre-approval quietly falls apart.
Not Sure Who to Talk To?
We work with mortgage professionals across Calgary and can point you toward someone who fits your situation — self-employed, new to Canada, first purchase, or refinancing. There is no cost to get pre-approved and no obligation to use anyone we suggest.
