Mortgage Pre-Approval
A lender's review of your income, debts and credit that estimates how much you may borrow and often holds a rate for 60 to 130 days.
A mortgage pre-approval is a lender's early review of your finances before you shop for a home. It estimates the maximum amount you may borrow, your likely payments and the interest rate you may get. Many lenders also hold that rate for a set period. The Financial Consumer Agency of Canada says rate holds usually last 60 to 130 days, depending on the lender.
To pre-approve you, a lender looks at your income, assets and debts, and will likely run a credit check. Expect to provide identification, proof of employment such as a recent pay stub, and proof you can cover the down payment and closing costs. Self-employed borrowers are usually asked for Canada Revenue Agency notices of assessment for the past two years. Lenders also ask about debts such as credit cards, car loans, lines of credit, student loans and support payments.
The maximum amount reflects the mortgage stress test. Federally regulated lenders qualify you at a rate higher than your contract rate, so the figure can be lower than you expect.
A pre-approval is not a guarantee. The amount you are finally approved for depends on the property's value and your down payment. Before final approval, the lender checks that the specific home meets its standards, which vary by lender. A lender can still say no after a pre-approval. It may instead offer a smaller loan or a higher rate, or ask for a larger down payment or a co-signer. Taking on new debt or changing jobs before closing can change the numbers the lender relied on.
Terms differ between lenders, and some use pre-qualification or pre-authorization to mean different steps. Ask how long the rate is guaranteed, whether you automatically get a lower rate if rates fall, and whether the pre-approval can be extended.
Sources
Last reviewed October 16, 2026.
Go deeper
Related terms in Mortgage & Buying
- Mortgage Renewal Signing a new term for your remaining balance when your mortgage term ends, with the option to negotiate or switch lenders.
- Mortgage Stress Test A federal rule that makes you qualify for a mortgage at a higher rate than your contract rate, to show you could handle higher payments.
- Trigger Rate The interest rate at which a fixed payment on a variable-rate mortgage covers only interest, so nothing goes toward the principal.
- Amortization The total time it would take to pay off your mortgage at your current rate and payment, usually much longer than your rate term.
General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.