Mortgage Pre-Approval
Why a Pre-Approval is the First Step to Homeownership Success
In today’s competitive real estate markets across Canada, securing a mortgage pre-approval is more than a step in the process—it’s the foundation of a successful home-buying journey. At Better Mortgages, we ensure that our clients are not only pre-approved but fully prepared to enter the housing market with confidence.
What Is a Mortgage Pre-Approval?
A pre-approval is a comprehensive evaluation of your financial profile conducted by a mortgage broker or lender. Unlike a pre-qualification, which is a preliminary estimate often based on verbal information, a pre-approval involves collecting and reviewing documentation to determine:
- How much you can borrow.
- What interest rate you qualify for.
- Your readiness to secure a mortgage.
With a pre-approval, you’ll typically receive a rate hold for up to 120 days, protecting you from rising interest rates while you shop for your dream home.
As financial expert Barbara Corcoran once said, “A house is like a home run. You can’t score unless you’re prepared to run the bases.” A pre-approval gets you to first base and positions you to succeed in the competitive housing market.
Why Is a Pre-Approval So Important?
Securing a pre-approval offers several critical advantages:
Confidence in Your Budget
Knowing your maximum borrowing power helps you focus your home search within your financial limits, saving time and avoiding disappointment.
A Competitive Edge
Sellers view pre-approved buyers as serious contenders. In hot markets with multiple offers, a pre-approval can set you apart by showing sellers you’ve done your homework and are ready to close.
Rate Protection
A pre-approval locks in your interest rate for up to 120 days, giving you peace of mind as you navigate the market, even if rates rise.
Tailored Advice from Experts
Each bank and lender have unique qualifying criteria, and a pre-approval from one lender might differ significantly from another. A mortgage broker ensures you’re exploring all options and finding the best fit for your financial goals.
How Does a Mortgage Broker Make a Difference?
Not all pre-approvals are created equal. Working with Better Mortgages ensures:
Access to Multiple Lenders
Banks often offer limited products, but a mortgage broker can shop the market, ensuring you get the best rate and terms.
Expert Guidance
We understand the nuances of lender requirements and tailor your pre-approval to align with your unique financial situation.
Fast Turnaround
Real estate doesn’t take weekends off, and neither do we. Our team is available when you need us, ensuring you’re ready to act on your dream home.
The Better Mortgages Pre-Approval Process
Our process is designed to simplify and streamline your pre-approval, ensuring you’re fully prepared to navigate the market:
Initial Assessment
We start with a consultation to understand your financial profile and goals.
Document Collection
We guide you through gathering the necessary paperwork, including proof of income, assets, and liabilities.
Customized Solutions
Using our network of lenders, we identify the best mortgage options tailored to your needs
Rate Lock
Once pre-approved, your interest rate is secured for up to 120 days, giving you time to shop confidently.
Documents You’ll Need for a Pre-Approval
Here’s what you’ll typically need to provide:
Identification
✓ Government-issued ID (driver’s license, passport, etc.)
Property Details
(if applicable)
✓ Mortgage statements, property tax bills, and lease agreements for any existing properties
Income Verification
✓ Employees: Recent pay stubs and T4s for the past two years.
✓ Self-Employed: T1 Generals and Notice of Assessments (NOAs) for the last two years.
✓ Passive Income: T1 Generals and NOAs for the last two years.
✓ Retired: Pension deposit statements and recent NOAs.
Asset Verification
✓ Bank account statements (last 3 months).
✓ Investment account statements (RRSPs, TFSAs, etc.).
✓ Proof of funds from property sales or other sources.
How to Begin Your Pre-Approval
Starting your pre-approval process with Better Mortgages is easy:
- Use our mortgage calculator to estimate your borrowing power.
- Complete our simple online mortgage application to get started.
- Schedule a consultation with one of our expert mortgage representatives for personalized advice.
Did You Know?
In 2023, over 70% of Canadian homebuyers cited pre-approval as a critical factor in their ability to make competitive offers.
According to a recent study, working with a mortgage broker can save borrowers up to 0.25% on their mortgage rate compared to going directly to a bank, potentially saving thousands over the life of a loan.
Take the First Step with Better Mortgages
A mortgage pre-approval isn’t just a formality—it’s a competitive advantage in today’s real estate market. With award-winning mortgage agents and brokers ready to guide you, Better Mortgages ensures you’re prepared to succeed.
Choose a Better Mortgages representative or contact us today to get started. Let us help you turn your homeownership dreams into reality.