Ready for a real mortgage pre-approval?
LendCity reviews your income, debts, and down payment, then shops lenders so you know your budget before you write an offer.
A mortgage pre-approval tells you how much a lender is willing to lend you, at what interest rate, and under what conditions — subject to GDS/TDS ratio limits and the mortgage stress test. It is an essential step before you start house hunting seriously. Buying with someone else? Read co-buying first so both incomes and debts are on the application from day one.
Quick answer
| Question | Short answer |
|---|---|
| Pre-approval vs pre-qualification | Pre-approval verifies documents and credit; pre-qualification is an estimate only |
| How long does it take? | Often 24–48 hours with a broker once documents are complete; banks commonly 2–5 business days |
| How long does the rate hold last? | Typically 90 to 120 days |
| Does it guarantee the mortgage? | No — the property still has to appraise and your finances must stay stable |
| Soft or hard credit check? | Full pre-approval usually means a hard inquiry; shopping several lenders in a short window is often treated as one inquiry |
Pre-Approval vs. Pre-Qualification
These two terms are often used interchangeably, but they mean different things and carry different weight.
Pre-Qualification
A pre-qualification is an informal estimate based on self-reported financial information. You tell the lender (or an online calculator) your income, debts, and down payment, and they give you a rough idea of how much you might be able to borrow.
- No documents are verified
- No credit check is performed (or only a soft check)
- No commitment from the lender
- Essentially a rough calculation that can be done in minutes
- Useful as a starting point but carries no weight in a real estate transaction
Pre-Approval
A pre-approval is a formal process where the lender verifies your income, employment, credit history, and debts. You submit documentation, the lender reviews it, and if approved, you receive a written commitment to lend up to a specific amount at a specific interest rate.
- Your documents are reviewed and verified
- A full credit check is performed (hard inquiry on your credit report)
- You receive a written commitment with a specific maximum mortgage amount
- Your interest rate is typically held (locked in) for 90 to 120 days
- Carries real weight — sellers and realtors know you are a serious, qualified buyer
Soft Credit Check vs Hard Pull
- Soft inquiry: Often used for a quick estimate or product eligibility check. It does not usually change your score the way a hard pull does.
- Hard inquiry: Standard for a full mortgage pre-approval. The lender pulls your credit file to verify scores, limits, and debts.
- Rate shopping: Multiple mortgage inquiries within a short period (commonly about 14–45 days, depending on the bureau) are generally treated as a single shopping event, so comparing a broker and your bank in the same window is normal practice.
If an online “pre-approval” never asks for T4s, NOAs, or pay stubs, treat it as a pre-qualification until documents are verified.
Online Pre-Approval vs Broker or Bank
You can start online, in a branch, or with a mortgage broker. The commitment only becomes meaningful when underwriting has reviewed your file.
- Online lenders and portals: Fast intake; still need the same income and down-payment documents for a real commitment.
- Mortgage broker: One application can be shopped to multiple lenders — useful when you want a rate hold without stacking separate hard pulls across many banks yourself.
- Your bank: Convenient if you already bank there; still compare against a broker quote before you lock in.
Buying with a friend or family member? Apply as co-borrowers from the start so the combined GDS/TDS picture matches how you will offer.
Documents You Will Need
Gathering your documents before starting the pre-approval process will speed things up significantly. Expect to provide the following:
Proof of Income
- T4 slips — From your employer for the last 2 years. These show your total employment income and tax deductions.
- Recent pay stubs — From the last 30 days, showing your current salary, deductions, and year-to-date earnings.
- Notices of Assessment (NOA) — From the Canada Revenue Agency for the last 2 years. These confirm your reported income and any taxes owing. You can download these from your CRA My Account.
- Letter of employment — A letter from your employer on company letterhead confirming your position, salary, employment status (full-time, part-time, contract), and start date.
- If self-employed: T1 General tax returns for the last 2-3 years, financial statements for your business, articles of incorporation (if applicable), and potentially a business licence. Self-employed borrowers generally need to show at least 2 years of consistent income.
- If you have other income sources: Documentation for rental income, investment income, child support, or any other income you want considered.
Proof of Down Payment
- Bank statements — For all accounts holding your down payment funds, covering the last 90 days. Lenders want to see the money sitting in your accounts and want to verify where it came from.
- FHSA statements — If part of your down payment is coming from a First Home Savings Account.
- RRSP statements — If you plan to use the Home Buyers’ Plan to withdraw from your RRSP.
- TFSA statements — If withdrawing from your TFSA.
- Gift letter — If any portion of your down payment is a gift from family, you will need a signed letter from the donor confirming the gift amount, confirming no repayment is expected, and showing proof of the funds transfer. Some lenders also require the donor’s bank statements showing the source of the gift.
Identification and Personal Information
- Government-issued photo ID — Driver’s licence or passport.
- Social Insurance Number (SIN) — Required for the credit check.
- Current address and address history for the past 3 years.
- Marital status — This affects how your application is assessed, particularly if you are applying jointly with a spouse or common-law partner.
Debt Information
- Credit card statements — Showing current balances and minimum payments.
- Car loan or lease agreements — Including monthly payment amounts and outstanding balances.
- Student loan balance — From your National Student Loans Service Centre account or provincial student loan provider.
- Line of credit statements — Including HELOCs, personal lines of credit.
- Any other debt obligations — Child support, spousal support, personal loans, buy-now-pay-later balances, or any other regular financial commitments.
Pre-Approval Document Tracker
Use this checklist to track which documents you have gathered. Your progress is saved automatically.
How Long Does Pre-Approval Take?
The timeline depends on how prepared you are and which type of lender you are working with:
- Mortgage brokers and online lenders: Can often provide a pre-approval decision within 24 to 48 hours once all documents are submitted. Some brokers can even give you a same-day conditional approval.
- Major banks (RBC, TD, BMO, Scotiabank, CIBC): Typically take 2 to 5 business days for a full pre-approval. Walking into a branch for the first meeting is often just the start — the actual underwriting happens at a processing centre.
- Credit unions: Similar timeline to banks, though smaller credit unions may be faster due to lower volume.
The biggest factor in how quickly you get pre-approved is how complete your document package is. If you submit everything the lender needs upfront, the process is fast. If documents are missing or need to be re-requested, it can stretch to 1-2 weeks.
Pro tip: Start gathering your documents 2-4 weeks before you plan to apply. Download your NOAs from CRA My Account, request an employment letter from your HR department, and pull together 90 days of bank statements. Having everything ready before your first meeting makes the process dramatically smoother.
What Your Pre-Approval Tells You
A pre-approval gives you several important pieces of information:
- Maximum mortgage amount — The most the lender will lend you based on your income, debts, and the stress test (calculated using your GDS and TDS ratios). This is a ceiling, not a target — you do not have to borrow the maximum.
- Interest rate hold — Your pre-approved rate is typically locked in for 90-120 days. If rates rise during that period, you keep your lower rate. If rates fall, most lenders will give you the lower rate.
- Monthly payment estimate — What your payments would look like at the pre-approved rate and amount.
- Conditions — Any conditions that must be met before the mortgage is finalized (appraisal, insurance, etc.).
What Pre-Approval Does NOT Mean
This is critical to understand, and many first-time buyers get this wrong.
What it does not commit you to
- You are not obligated to buy a home or to take that lender’s mortgage.
- You are not locked into the maximum amount — borrow less if the payment fits your budget better.
- A rate hold is not a promise that every property type (condo, rural, house with issues) will clear underwriting.
- Keep a financing condition on your offer until the lender issues a firm commitment on that address.
Should You Get Pre-Approved by Multiple Lenders?
You can, but be strategic about it. Each full pre-approval involves a hard credit inquiry, which can temporarily lower your credit score by a few points. However, multiple mortgage inquiries within a short period (typically 14-45 days) are generally treated as a single inquiry by credit bureaus, since they recognize you are rate shopping, not taking on multiple mortgages.
A common approach is to get pre-approved through a mortgage broker (who can shop multiple lenders with a single application) and separately through your primary bank (to compare offers). This gives you broad market coverage with minimal credit impact.
Frequently Asked Questions
What is a mortgage pre-approval in Canada?
A conditional commitment from a lender after they verify your income, employment, credit, and debts. It usually states a maximum loan amount and holds a rate for 90–120 days. It is stronger than a pre-qualification and weaker than a firm approval on a specific property. See FCAC’s pre-approval overview.
How long does mortgage pre-approval take?
With complete documents, many brokers return a decision in 24–48 hours. Major banks often take 2–5 business days. Missing NOAs, pay stubs, or down-payment statements is what stretches the timeline.
Can you get a mortgage pre-approval online?
Yes. Online applications are common, but a meaningful pre-approval still requires document upload and a credit check. If nothing was verified, you only have an estimate.
What documents do I need for pre-approval?
Typically two years of T4s and Notices of Assessment, recent pay stubs, an employment letter, 90 days of bank statements for the down payment, ID and SIN, plus statements for every debt. Self-employed buyers need tax returns and business financials. Use the checklist above to track them.
Does pre-approval hurt my credit?
A full pre-approval usually includes a hard inquiry. Shopping mortgages in a short window is normally counted as one shopping event. Soft-only online estimates have less impact but also less weight with sellers.
Sources: FCAC — Mortgages · OSFI — Residential Mortgage Underwriting (B-20) · FCAC — Pre-approval and qualifying
Next: GDS and TDS Ratios Explained
When you want these financing rules applied to your own file, book a free call.
How much cash do you actually need?
Canada's tiered down payment rules plus CMHC can change your target. Get a personalized estimate.
1-226-783-1640