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Pre-Approval Process

A mortgage pre-qualification can be useful as an estimate of how much you can afford to spend on your home

Analysing Data

A pre-approval is when a potential mortgage lender looks at your finances to find out the maximum amount they will lend you and what interest rate they will charge you.

With a pre-approval, you can:


  • know the maximum amount of a mortgage you could qualify for

  • estimate your mortgage payments

  • lock in an interest rate for 60 to 120 days, depending on the lender


The pre-approval amount is the maximum you may get. It does not guarantee that you will get a mortgage loan for that amount. The approved mortgage amount will depend on the value of your home and the amount of your down payment. It may be a good idea to also look at properties in a lower price range so that you don’t stretch your budget to its limit.

Remember that you’ll also need money for:


  • closing costs

  • moving costs

  • ongoing maintenance costs

Mortgage Document Checklist

Confirming your down payment


1. Your Pre-Approved Mortgage Certificate,

if applicable


2. Confirmation of your down payment. This may include:

  • Borrowed funds


  • Withdrawal from RRSP through the Home Buyer's Plan


  • If the down payment is cash from your own resources, 3 months of bank statements are required showing the accumulation of the down payment


  • If the down payment is a gift, a gift letter from the donor is required specifying that the funds do not need to be repaid and proof of the deposit of the gift into your bank account


  • If the funds are coming from the sale of another property, include a copy of the sale agreement, including all schedules and appendices. If there is a mortgage on the property, include a current mortgage statement confirming the mortgage balance. If the property is in Quebec, include a copy of the mortgage approval obtained by the buyers of the property


3. List of assets and liabilities


4. Bank account number and transit number for payments

Copy of void cheque for account from which mortgage payments are to be taken


5. Confirmation of 1.5% in available funds on top of the down payment for dosing costs for high-ratio mortgages (insurer requirement)

Confirming your employment and income


1. Confirmation of your current employment and income 


For salary or full time this may Include:

  • Most recent direct deposit (EFT) payments (dated within the last 45 days) and EFT history printout showing EFTs for the last 6 months 

  • Most recent pay stubs (dated within the last 45 days) and one of the following:

  • Employment letter

  • Most recent 14

  • Previous year-end stub

  • Most recent federal or Quebec Notices of Assessment (NOA)


For fluctuating Income this may Include:

  • 2 most recent years federal or Quebec Notices of Assessment (NOAs)

  • Most recent pay stubs (dated within the last 45 days)

  • Most recent direct deposit (EFT) (dated within the last 45 days)

  • Copy of the most recent Employment Insurance (El) statement (dated within the last 45 days)


For self-employed Income this may Include:

  • Copy of first 4 pages of last two years filed T1 General Income Tax Return and the two related federal or Quebec Notices of Assessment (NOAs)

  • Financial statements for the last two years (if credit is not auto-approved), for limited companies only


Information about your property

1. A signed and complete copy of the accepted Purchase and Sale Agreement, including all schedules and appendices


2. A copy of the real estate listing with photo


3. Heating costs, property tax estimates and condo fees (usually available on the real estate listing)


4. Full address of property, including legal description and postal code


5. Name, address, postal code, telephone and fax number of your lawyer/notary

This Checklist is a guideline for information purposes only and is not a guarantee of approval. The Above list is not exhaust, additional documents and/or information may be requested when you apply for a mortgage. All applicants must satisfy lender’s criteria. Conditions and restrictions apply.

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