Mortgage Pre-Approval Checklist for Canada

Why Get Pre-Approved?

A mortgage pre-approval is a formal assessment by a lender of how much they're willing to lend you, at what rate, and under what conditions. It's different from pre-qualification, which is an informal estimate based on self-reported information. A true pre-approval involves a credit check and document verification.

Pre-approval benefits: you know your real budget, sellers take your offers more seriously, you lock in a rate for 90–130 days (protecting against rate increases while you shop), and you identify and resolve any issues before you're under the time pressure of an accepted offer.

The Document Checklist

Proof of Identity

• Government-issued photo ID (passport or driver's licence)
• SIN (Social Insurance Number)

Proof of Income — Salaried/Full-Time Employees

• Letter of employment on company letterhead (dated within 30 days) showing: position, start date, employment type, annual salary
• Most recent 2 pay stubs
• Last 2 years T4 slips
• Last 2 years Notice of Assessment (NOA) from CRA

Proof of Income — Self-Employed

• Last 2 years T1 General tax returns
• Last 2 years Notice of Assessment from CRA
• Last 2 years business financial statements (if incorporated)
• Business licence or registration
• 6–12 months business bank statements

Down Payment Verification

• 3 months bank statements showing the funds (or longer if funds were recently received)
• If using gifted funds: gift letter from donor, donor's bank statement showing the funds, your bank statement showing receipt
• If using RRSP (HBP): RRSP statements showing funds have been on deposit 90+ days
• If selling another property: current mortgage statement, estimated sale price

Property Information (if you have a specific property)

• Accepted offer to purchase or MLS listing
• Property address and PIN

Existing Debts and Liabilities

• Statements for any existing mortgages
• Car loan or lease statements
• Credit card statements (most recent)
• Student loan statements
• Any child support or alimony documentation

What Lenders Evaluate

Credit score: Most lenders want 680+ for best rates. Some will go to 620 with a higher rate. Check your credit report at Equifax and TransUnion before applying — dispute any errors.

Income stability: 2 years at the same employer is ideal. Recently changed jobs in the same field is usually acceptable. Under 2 years self-employed is more challenging but not impossible.

Debt ratios: Your GDS ratio (housing costs / income) should be under 39% and your TDS ratio (all debts / income) under 44%.

The stress test: You'll be qualified at your rate + 2% or 5.25%, whichever is higher. This is applied to all federally regulated lenders.

Rate Hold: What It Means

When you're pre-approved, your lender will typically hold your rate for 90–130 days. If rates rise during that period, you keep the lower rate. If rates fall, you can usually get the lower rate. Make sure you understand whether your rate hold is guaranteed and for how long.

Pre-Approval vs. Final Approval

Pre-approval is conditional. Final approval happens after you have an accepted offer and the lender has reviewed the specific property. They will order an appraisal (you pay for this, typically $300–$500) and may ask for updated documents. Don't make major financial changes between pre-approval and final approval — don't change jobs, take on new debt, or make large purchases.

Broker vs. Bank: Which Is Better?

A mortgage broker accesses dozens of lenders simultaneously — banks, credit unions, trust companies, and monoline lenders — and is paid by the lender, not by you. Going directly to your bank means you only see one lender's products. For most first-time buyers, working with a licensed mortgage broker leads to better rates and more options. Always ask a broker what their compensation is and whether any lender pays them more than others.