- Lenders can hold a pre-approved rate for 60 to 130 days, depending on the lender, according to FCAC.
- Banks must qualify you at the higher of 5.25% or your contract rate plus 2%.
- FCAC says housing costs shouldn’t top 39% of gross income, and all your debts together 44%.
- A pre-approval isn’t a promise: a lender can still decline if the property or your finances don’t check out.
Checked October 2026
Pre-approval vs pre-qualification
FCAC explains that the process goes by several names, including pre-approval, pre-qualification and pre-authorization, and that each lender defines its own steps. In practice you’ll meet two kinds of answers:
A quick estimate
Often called pre-qualification. Based on what you tell the lender about income and debts, usually with no documents. Useful for a first look, but nothing is held or verified.
A documented pre-approval
The lender reviews your documents and likely runs a credit check, then gives a maximum amount and may hold a rate. This is the one sellers and agents take seriously.
Because the labels vary, ask any lender or broker exactly what you’re getting: whether they checked your credit, verified your income and are holding a rate.
How to get pre-approved, step by step
- Check your credit reportFCAC suggests ordering your report before you shop and fixing any errors, since a weak score can mean a refusal or a request for a co-signer. See how to read a credit report.
- Set your own budget firstWork out what payment you’re comfortable with, not just the maximum you might qualify for. Our mortgage affordability calculator applies the same stress test lenders use.
- Gather your documentsID, proof of income and employment, proof of your down payment and closing costs, and a list of your debts and other assets. Details below.
- Shop lenders and brokersCompare banks, credit unions and mortgage brokers. FCAC says mortgage quotes from different lenders within a 2-week period count as 1 credit inquiry.
- Get the terms in writingConfirm the maximum amount, the rate being held, how long the hold lasts and what conditions apply.
Documents lenders ask for
Before pre-approving you, a lender or broker looks at what you own, what you earn and what you owe. FCAC lists what you’ll typically provide:
- Identification
- Proof of employment: a recent pay stub, your position and how long you’ve worked there
- If you’re self-employed: Canada Revenue Agency notices of assessment for the past 2 years (see our note on the notice of assessment)
- Proof you can cover the down payment and closing costs, often recent bank or investment statements
- Other assets, such as a car, cottage or boat
- Your debts and obligations: card balances, car loans, lines of credit, student loans and child or spousal support
How lenders work out your amount
Three rules do most of the work: two debt ratios and the stress test, with the minimum down payment setting the floor.
| Rule | What it means |
|---|---|
| Gross debt service (GDS) | Mortgage payments, property tax, heating and 50% of condo fees shouldn’t be more than 39% of gross household income |
| Total debt service (TDS) | Housing costs plus all other debt payments shouldn’t be more than 44% of gross income |
| Stress test | Banks qualify you at the higher of 5.25% or your negotiated rate plus 2%, for insured and uninsured mortgages |
| Minimum down payment | 5% of the first $500,000, plus 10% of the part from $500,000 to $1,500,000; 20% at $1,500,000 or more |
| Mortgage insurance | Required when you put down less than 20% |
Sources: FCAC, Preparing to get a mortgage; CMHC mortgage loan insurance rules.
The stress test is why a pre-approval often comes in lower than a payment calculator at your real rate suggests. If you’re offered 4.49%, about the average Bank of Canada data shows for new uninsured 5-year fixed mortgages in July 2026, you’d qualify at 6.49%, because 4.49% plus 2 is higher than 5.25%.
The down payment works on a sliding scale. On a $700,000 home, the minimum is $25,000 (5% of the first $500,000) plus $20,000 (10% of the remaining $200,000), or $45,000. Try your own price in the down payment calculator.
The rate hold and what to ask
One of the main reasons to get pre-approved is to lock in a rate while you look. FCAC says lenders hold rates for 60 to 130 days, depending on the lender. Ask:
- How long is the rate guaranteed, and can the pre-approval be extended?
- If rates fall while I’m pre-approved, do I get the lower rate automatically?
- What conditions could change the amount or the rate before closing?
Compare what you’re offered with current mortgage rates from banks, credit unions and online lenders.
Lender or mortgage broker?
You can get pre-approved directly by a lender (a bank, caisse populaire, credit union, or a mortgage, trust, loan or insurance company) or through a mortgage broker.
Brokers don’t lend money themselves. They find a lender for you, usually don’t charge you a fee and are generally paid a commission by the lender. Because brokers work with different lenders, FCAC suggests asking which lenders a broker deals with. Brokers are licensed by the provinces, so you can check a licence with your provincial regulator.
After you’re pre-approved
The maximum is a ceiling, not a target. FCAC suggests looking at homes below it so your budget isn’t stretched, and remembering closing costs, moving costs and ongoing maintenance. Closing costs include land transfer tax or registration fees, which vary by province; estimate yours with the land transfer tax calculator.
Keep your finances steady until closing. A lender can still refuse you after pre-approval, for example if the property doesn’t meet its standards or your credit history changes. If that happens, FCAC says options can include a lower amount, a higher rate, a larger down payment or a co-signer.
Frequently Asked Questions
How do I get pre-approved for a mortgage?
Check your credit report, set a budget, gather ID, proof of income, down payment statements and a list of debts, then apply with a lender or mortgage broker. They’ll review your documents, likely run a credit check, and give you a maximum amount and often a rate hold.
How long does a mortgage pre-approval last?
FCAC says lenders hold a pre-approved rate for 60 to 130 days, depending on the lender. Ask whether yours can be extended.
Does getting pre-approved hurt my credit score?
The lender will likely run a credit check, which is a hard inquiry. FCAC says mortgage quotes from different lenders within a 2-week period are treated as 1 inquiry, so shop within that window.
What documents do I need for a mortgage pre-approval?
ID, a recent pay stub and employment details, notices of assessment for the past 2 years if you’re self-employed, proof of your down payment and closing costs, and details of your other assets and debts.
What is the mortgage stress test?
It’s a qualifying rate. Banks must check that you could afford payments at the higher of 5.25% or your negotiated rate plus 2%, for both insured and uninsured mortgages.
What’s the difference between pre-approval and pre-qualification?
FCAC says lenders use the terms differently. A pre-qualification is often a quick estimate from what you tell the lender, while a pre-approval usually involves documents, a credit check and sometimes a rate hold. Ask which one you’re getting.
How much mortgage can I get pre-approved for?
It depends on your income, debts, down payment and the stress test rate. Lenders generally keep housing costs within 39% of gross income and all debts within 44%. Our mortgage affordability calculator runs the numbers.
What credit score do I need for a mortgage pre-approval?
CMHC sets a minimum score of 600 for the mortgages it insures. Lenders set their own rules for uninsured mortgages, and a stronger score usually means a better rate.
Can a lender deny my mortgage after pre-approval?
Yes. A pre-approval doesn’t guarantee a mortgage. The lender still has to approve the property and confirm your finances, and it may offer a lower amount, a higher rate or ask for a co-signer instead.
Should I get pre-approved through a bank or a mortgage broker?
Either works. A bank lends its own money; a broker compares several lenders and is usually paid by the lender. Ask a broker which lenders they work with, and compare offers before you sign.
Try this next
Sources, checked October 2026
- FCAC: Getting preapproved for a mortgage canada.ca
- FCAC: Preparing to get a mortgage canada.ca
- CMHC: Purchase (mortgage loan insurance) cmhc-schl.gc.ca
- FCAC: Improving your credit score canada.ca
General information for Canadians, not financial, tax or legal advice. Rules and menus change, so confirm details with your bank, lender or the Government of Canada. See our methodology.