Securing a mortgage pre-approval in Canada can sound like an intimidating task. But trust me, it doesn’t have to be! A pre-approval is the best way to determine how much you can comfortably afford. Below is a simple mortgage approval checklist on how to get mortgage pre-approval Canada.
Mortgage Approval Checklist
1. Collect Your Financial Information
Your financial information helps lenders know what you are eligible for. However, we know that gathering up these documents can feel overwhelming. Yes, there’s a ridiculous amount of information for preapproval, but you don’t need to figure it out alone. That is what I am here for! After you reach out to me, an account manager will carefully and clearly walk you through the documents needed. Here’s an example list of mortgage pre-approval documents we may request:
- Recent pay stubs and T4s, or if you’re self-employed, your Notice of Assessment
- Proof of employment (an employer letter or contract)
- Bank or investment statements showing your savings
- A list of debts or monthly payments (credit cards, loans, etc.)
This service is entirely free and is a foundational starting point to your mortgage approval.
2. Make a Plan for your Credit Score
Your credit score impacts your ability to borrow for your mortgage. Most lenders have a threshold credit score they need to be met before approval. But do not worry if you are not there yet! A strong credit score is built. Once we review your credit report for mortgage pre-approval, we can plan on ways to improve it to get you in a better position for lenders. Using my history in financial planning, I will lend insight and strategies to improve your credit score. Here’s a list of what can improve credit score before mortgage approval:
- Pay down balances as much as possible
- Keep making on-time payments
- Avoid opening new credit cards right before your application
A clear plan for your finances leads to confident home buying.
3. Understanding Down Payment Options in Canada
“When is mortgage insurance waved in Canada?”, “Can I buy a house in Canada with 5% down?” “What is the minimum down payment for a house in Canada in 2025?” These are common questions I get from my clients as we crunch through the numbers and figure out the options that work best for every individual and regional case. A few quick rules of thumb when it comes to down payment rules Canada:
- For homes under $500,000, you’ll need a 5% down payment
- For anything over $500,000, it’s 5% on the first $500K and 10% on the rest
- If you can put down 20%, you’ll avoid mortgage default insurance
- Every province, except Alberta and Saskatchewan, have either a land transfer tax (LTT) or property transfer tax (PTT)
Understanding how down payment percentage and other regional-specific costs affect your mortgage options will help you secure a mortgage that works for you and your budget. This is a great Home Purchase Calculator to get you started on seeing how your numbers come together.
4. Shop Around
Do not just go to your bank. You will want to shop around to multiple lenders to find a mortgage that best works for your own situation. This is where using a mortgage broker makes life so much easier. What does a mortgage broker do in Canada? Well, instead of visiting multiple banks yourself, I will check rates and options across a wide range of lenders. Different lenders fit different situations. Here are some examples of lenders I will check with:
- Traditional Banks
- Local Credit Unions
- Alternative lenders
- Private lenders
I’ll do the legwork to find what works best and present the options to you in a clear and no-pressure way. Oh. And this is a free-for-you service!
5. Submit Your Application for Pre-Approval
Once we’ve got your documents ready and know what your goals are, it’s time to apply.
That means:
- Filling in your pre-approval application
- Submitting your documents
- Letting me check your credit
Within a few days, you’ll get a letter showing how much you’re pre-approved for. You might wonder, “Does mortgage pre-approval lock in my rate in Canada?” It can! Usually, you’ll have up to 120 days of house-hunting knowing exactly your price range and interest rate.
Ready to Get Started?
If you’re thinking about securing a mortgage pre-approval in Canada, and want to see where you stand, reach out! You can connect with me anytime here or contact me directly to book a quick, no-pressure pre-approval chat.
I make the process simple and stress-free so you can focus on the fun part: finding your new home 🏡