Getting pre-approved is the single most important step in your home-buying journey. It tells you exactly what you can afford, gives you negotiating power with sellers, and protects you from rate increases. Here's everything you need to know about the pre-approval process in 2026.
What Is Mortgage Pre-Approval?
Pre-approval is a lender's conditional commitment to provide you with a specific mortgage amount at a locked-in rate. Unlike a quick pre-qualification (which is just an estimate), pre-approval involves:
- Full credit check
- Income and employment verification
- Document review
- Rate hold (typically 90-120 days)
Why it matters: When you make an offer, sellers know you're a serious, qualified buyer—not someone who might fall through at the financing stage.
Documents You'll Need
Income Verification
| Employment Type | Required Documents |
|---|---|
| Salaried | Recent pay stubs, T4s (2 years), employment letter |
| Hourly | Pay stubs (showing YTD), T4s (2 years), employment letter |
| Self-employed | T1 Generals (2 years), NOAs, business financials |
| Commission | T4s + T1 Generals (2 years), commission statements |
Asset Documentation
- Bank statements (90 days)
- Investment account statements
- Down payment proof (showing funds available)
- Gift letter (if receiving gift funds)
Identification
- Government-issued photo ID (driver's license or passport)
- SIN for credit check
- Proof of Canadian residency (if applicable)
Pro tip: Gather documents before applying. Missing documents are the #1 cause of pre-approval delays.
The Pre-Approval Timeline
| Step | Timeline | What Happens |
|---|---|---|
| Application | Day 1 | Submit online or with broker |
| Initial review | Days 1-2 | Lender reviews basics |
| Credit check | Same day | Pull credit report and score |
| Document collection | Days 1-5 | You provide all required docs |
| Underwriting | Days 3-7 | Full verification |
| Pre-approval issued | Days 5-10 | Rate hold confirmed |
Fast-track tip: With a broker and all documents ready, pre-approvals can be completed in as little as 24-48 hours.
Start Your Pre-Approval Today
Get pre-approved now and lock in today's rates. Our team will guide you through the entire process and ensure nothing is missed.
Understanding Rate Holds
One of the biggest benefits of pre-approval is the rate hold:
- Duration: Typically 90-120 days
- Protection: If rates rise, you keep your lower rate
- Flexibility: If rates drop, you get the lower rate
- Renewability: Most can be renewed or extended
Rate Hold Strategy
In 2026's rate environment:
- Lock in your rate hold early
- Monitor rates during your hold period
- Work with your broker to renew if needed
- Consider shorter terms if expecting rate drops
Learn more about rate holds and how they work.
Pre-Approval vs. Pre-Qualification
| Feature | Pre-Qualification | Pre-Approval |
|---|---|---|
| Credit check | No | Yes (hard inquiry) |
| Income verified | Self-reported | Documented |
| Rate hold | No | Yes (90-120 days) |
| Time required | 5-10 minutes | 1-10 days |
| Seller confidence | Low | High |
| Accuracy | Estimate only | Reliable commitment |
Bottom line: Pre-qualification is a starting point; pre-approval is what matters when you're ready to buy.
What Can Affect Your Pre-Approval?
Once pre-approved, protect your status by avoiding:
- Changing jobs or going on leave
- Making large purchases on credit
- Opening new credit accounts
- Co-signing for someone else
- Large unexplained deposits
- Missed payments on any accounts
Important: Your pre-approval is conditional. Material changes to your finances can result in approval being revoked.
FAQ
Q: Does pre-approval guarantee I'll get the mortgage?
A: No—it's conditional on the property appraising at value and no material changes to your finances. But it's a strong indicator of final approval.
Q: How long does pre-approval last?
A: Typically 90-120 days. Rate holds can often be renewed, though the rate may change.
Q: Will pre-approval hurt my credit score?
A: The hard inquiry may lower your score by 5-10 points temporarily. Multiple mortgage inquiries within 14-30 days count as one inquiry for scoring purposes.
Q: Can I get pre-approved with bad credit?
A: Yes, though your options may be limited to B lenders or alternative programs. The pre-approval will tell you exactly where you stand.
Q: Should I get pre-approved before house hunting?
A: Absolutely. It sets your budget, strengthens your offers, and prevents the heartbreak of falling in love with a home you can't afford.
What's Next
Ready to know exactly what you can afford? Get pre-approved today. Our team will walk you through every step, ensure your documents are in order, and lock in the best rate available.
Ready to Get Started?
Contact us today for personalized mortgage advice and competitive rates.
