DAVE@DAVEBUTLER.CA

DAVE@DAVEBUTLER.CA

Pre-Approval

A pre-qualification is usually done over the phone and is meant to see if you meet basic financial
criteria, based most often on the borrower’s word-of-mouth. A true mortgage pre-approval is
when a mortgage broker or bank/lender has collected documentation from you and has
conducted a full investigation into your assets, debt, and credit history to determine whether
you can qualify for a mortgage, and how much you may be able to qualify for. A mortgage pre-
approval typically allows for an interest rate lock, whereby allowing a pre-approved buyer to have
up to 120-days to shop for a home while knowing their interest rate is being held, regardless
whether rates are rising.

It’s very important to understand the-
difference between a mortgage pre-
qualification and a mortgage pre-
approval

Why is a mortgage pre-approval important in Canada?

In Canada, many of the provinces have highly competitive real estate markets. If you plan to finance a home purchase, getting a mortgage pre-approval completed is extremely important, especially when multiple buyers may be competing for the same property at times.

  • Your real estate agent should be given a copy of your pre-approval, so they know your maximum purchasing power and any specific conditions that are required.
  • Sellers find buyers with a pre-approval more attractive compared to a pre-qualification, because it means the mortgage broker or bank/lender has done more due diligence to determine whether you are financially qualified for the loan.
  • Pre-approvals allow you to lock in an interest rate while you shop for a home.

What documents should I have ready to
provide for pre-approval?

Identification

Government issued ID for each borrower – this can be any provinces driver’s license, birth certificate, or a passport.

  • Employees – two most recent pay stubs + last two years T4’s.
  • Self-employed – last two years of Personal T1 Generals & Notice of Assessments (NOAs).
  • Passive income – last two years of personal T1 Generals & Notice of Assessments (NOAs).
  • Retired/pension – Last 3-months bank chequing account statements, showing pension income being deposited + last two years of personal T1 Generals & Notice of Assessments (NOAs).

Depending on where your funds are coming from, the following can apply:

  • Bank chequing and/or savings accounts (last 3-months of statements).
  • TFSA (last 3-months of statements).
  • RRSP (last 3-months of statements).
  • Agreement of Sale (if funds are coming from the sale of a home).
  • Refinance Commitment (if funds are coming from a refinance of another property you own).
  • Mortgage Statement (for all homes that you have mortgages on).
  • Property Tax Bill (for all homes that you own).
  • Lease Agreements (for any rental properties that you own).

We can help you with your pre-approval!

You just visited a property and decided you want to make an offer right away, but it’s in the
evening or on a Saturday afternoon, and most lenders are out of the office. Dave and his team
understand that real estate doesn’t take weekends off. We are available to execute a pre-approval 
when you need us. Our goal is to ensure you win.

How can I begin the pre-approval process?

Utilize our mortgage calculator below and complete our online mortgage application.

Want to check out more of our mortgage calculators?

Explore our diverse range of mortgage calculators designed to simplify your home financing
journey. Each of these calculators are user-friendly and designed to empower you with the
information you need to make informed decisions. Start planning your financial future today!

Use our Calculators
Complete an Application

Let's get you pre-approved

Need assistance with your application? Complete the form and we will begin an application manually for you.

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