Getting a mortgage pre-approval should be your very first step when you’re thinking about buying your first home. Buying a home is a big part of the Canadian dream, in fact, about two-thirds of Canadians owned their homes as of the last Census. And for most people, their home ends up being their biggest financial asset so it makes sense that you’d want to start the process off on the right foot.
Whether you’re a first-time buyer or just haven’t been through the mortgage process in a while, starting with a pre-approval through a mortgage broker helps you avoid surprises and make smarter, more informed decisions. You’re not just applying for a loan—you’re getting expert guidance, access to competitive rates from multiple lenders, and support through every step of the process.
What is a Mortgage Pre-approval?
A mortgage pre-approval is basically a green light from a lender or mortgage broker saying, “Yes, based on your current financial situation, this is roughly how much we’d lend you to buy a home.”
It’s different from a mortgage pre-qualification, which is more of a ballpark estimate based on basic details. Pre-approval is more serious—it involves submitting paperwork like income statements and undergoing a credit check. It shows sellers you’re a committed buyer and gives you a clear idea of your price range. Some lenders will even lock in a mortgage rate for you for 90 to 120 days, which can be a big help in a market where rates often change.
Why Mortgage Pre-approval Matters
There are a few key benefits to getting preapproved before your house hunt:
You’ll know your budget: No guessing, no wishful thinking—your pre-approval tells you exactly what you can afford. You can get an idea of how much you qualify for with my online mortgage calculator.
You’ll be taken seriously: Sellers and real estate agents are far more likely to work with buyers who already have a pre-approval in hand.
You’ll lock in an interest rate: If rates go up while you’re shopping, you’re protected for a set amount of time.
Think of it as your first big step toward homeownership—and it can usually be done quickly if you’ve got your documents ready.
What You’ll Need for Pre-approval
Speaking of documents, here’s what you’ll typically need to get preapproved:
- Government-issued ID
- Proof of income (like pay stubs or a letter from your employer)
- Tax documents (especially if you’re self-employed)
- Bank account and investment statements
- Details on any debt you currently have (like student loans, credit cards, or car payments)
Your mortgage broker can give you a full list and walk you through the process. It’s a good idea to start pulling these things together early—it’ll save time later on.
Tips for a Smooth Pre-approval Process
- Shop around: Don’t just accept the first offer you get. A mortgage broker can help you compare different lenders and rates to make sure you’re getting the best deal.
- Stick to your comfort zone: Just because you’re preapproved for a higher amount doesn’t mean you need to spend that much. Think about what you’re comfortable paying month to month and don’t forget about things like utilities, taxes, and maintenance. My purchase calculator can help you work out what you’ll need to be prepared for.
- Avoid big financial changes: Once you’re preapproved, try not to make any major purchases or changes to your job. Adding new debt or switching employers can affect your approval status.
- Read the fine print: When your pre-approval comes through, look over the details carefully. What type of mortgage is it—fixed or variable? What’s the term? What’s the rate hold period? If anything is unclear, talk it through with your mortgage broker.
- Keep in touch: Stay available in case your broker needs more info. If you’re planning to go away, give them a heads up so your application doesn’t get delayed.
What Happens After You’re Pre-approved?
Once you have your mortgage pre-approval, it’s time to start house hunting! You’ll usually have about 90 to 120 days before your rate hold expires, so use that time wisely. Keep your finances steady and work closely with your broker and realtor to find the right home for you.
Don’t Go It Alone As A First Time Buyer, Work With A Mortgage Broker Who Will Guide You Through Your Pre-approval And Beyond
Buying a home is a huge milestone, and getting a mortgage pre-approval is a smart way to get started on the right foot. It helps you plan realistically, gives you confidence when making offers, and can even save you money by locking in a great rate.
If you’re thinking about buying soon, talk to me about getting preapproved—you’ll be glad you did when it comes time to make an offer. I’ll find you the best mortgage options and interest rates, and give you the advice that will help get you started as a first time buyer. Book a free consultation or call me at 705-315-0516 and let’s get started!