Pre-approval

Mortgage pre-approval: what it does (and doesn’t) guarantee

A pre-approval tells you your budget and can hold a rate while you shop. Here’s how to get one and what to watch out for.

By the MortgageMatchr teamUpdated September 25, 20265 min read
Key takeaways
  • A pre-approval can hold a rate for about 90 to 120 days.
  • It isn’t a final approval. The property and your file still need to be verified.
  • Avoid new debt or job changes between pre-approval and closing.

1. What a pre-approval is

A lender reviews your income, debts and credit to estimate how much you can borrow and at what rate. Many lenders will hold that rate for 90 to 120 days, protecting you if rates rise while you shop.

2. What it doesn’t guarantee

A pre-approval is conditional. Final approval depends on the property itself (usually an appraisal) and a final review of your documents. Anything that changes in the meantime can affect the outcome.

3. Documents to gather

Expect to provide photo ID, recent pay stubs or an employment letter, two years of T4s or Notices of Assessment, and proof of your down payment, typically a 90-day history of the account it’s in.

4. Expect a credit check

To pre-approve you, a lender or agent will ask for your consent to check your credit. Multiple mortgage checks in a short window are generally treated as one shopping event, so comparing lenders won’t hurt you much.

5. Protect your approval

Between pre-approval and closing, avoid financing a car, opening new credit cards, missing payments or changing jobs. Keep your down payment where it is and tell your agent about any changes right away.

This guide is general information, not financial advice. Rules and programs change; an independent, licensed mortgage agent can confirm what applies to you.

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