The two terms get used interchangeably online. They are not the same thing, and the difference shows up the moment you write an offer. Pre-qualification A quick estimate based on numbers you state verbally or through an online form. Nothing is verified, no credit is pulled in most cases, and no rate is held. It is useful for setting an early budget and nothing more. Sellers and their agents give it no weight. Pre-approval A real underwriting exercise. The lender or broker pulls your credit, collects income documents and issues a written commitment for a maximum amount at a held rate — normally for 90 to 120 days. If rates rise inside that window you keep the held rate. If they fall, most lenders float you down before closing. Pre-qualification Pre-approval Credit check Usually none Hard inquiry Documents verified No Yes Rate hold No 90–120 days Written commitment No Yes Weight with sellers None Strong What a pre-approval still does not guarantee It is conditional. Final approval depends on: The property. The lender must be comfortable with the appraised value, the condition and, for condos, the status certificate. Your file staying the same. Changing jobs, financing a car or opening new credit between pre-approval and closing can undo it. Final document verification at the time of the offer. This is why buyers who skip a financing condition on the strength of a pre-approval are taking real risk in a soft appraisal market. Documents to have ready Letter of employment and a recent pay stub (salaried), or two years of T1 Generals and Notices of Assessment (self-employed) Two years of T4s 90 days of history for the down payment funds Photo ID A gift letter, if any of the down payment is gifted How long it takes A broker can usually return a full pre-approval in 24 to 48 hours once documents are in hand. Renew or refresh it if your house hunt runs past the rate hold — an expired pre-approval is just a pre-qualification again. See what payment your pre-approval amount implies with our mortgage calculator, then start an application. Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions Does a pre-approval hurt my credit score? It involves one hard inquiry, which has a small temporary effect. Mortgage inquiries in a short shopping window are generally treated as a single event by Canadian credit bureaus. How long does a mortgage pre-approval last? Typically 90 to 120 days. After that the rate hold expires and the lender needs updated documents to re-issue it. Can a pre-approval be withdrawn? Yes. It is conditional on your financial position staying unchanged and on the property meeting lender requirements. New debt, a job change or a low appraisal can all void it. Can I get pre-approved with more than one lender? You can, but each is a separate hard inquiry. A broker submits one application and shops it across lenders, which is cleaner for your credit file.
