Don Stoddart, AMP

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Mortgage Pre-Approval

Getting a mortgage pre-approval!

You may be surprised to hear that not all mortgage pre-approvals as equal!

Some are just a quick online calculated that does not factor in everything and can be very miss leading. If they have not pulled your credit, then in my opinion it’s not worth the paper it’s printed on. I see many people get caught in a bad situation as they bought firm and then learned later hat the pre-approval, they have been no good. If you’re going to get a mortgage pre-approval, do it the right way and this is where we can help.

A mortgage pre-approval in Canada is a process where a lender evaluates your financial situation to determine how much money they would be willing to lend you to purchase a home.

The lender takes into consideration factors such as your credit score, income, debt-to-income ratio, and employment history, among others. A pre-approval letter is usually valid for a set period, typically 90 to 120 days, during which time you can shop for a home with the assurance that you will be able to secure financing up to the approved amount.

Obtaining a pre-approval can help you understand your budget and make you a more competitive buyer when making an offer on a property. Keep in mind that a pre-approval is not a guarantee of final mortgage approval, and the lender will still need to verify your information and appraise the property.

A mortgage pre-approval is not the same as a mortgage commitment. A lender may provide you with a written confirmation of your pre-approval and ask you to sign it, but that doesn’t mean they’re committed to finalizing your deal. They can still change their mind once they see the appraisal or review your credit report.

A mortgage pre-approval is just a preliminary step in the process of getting a loan. It can help you understand your budget and make you a more competitive buyer when making an offer on property. Keep in mind that a pre-approval is not a promise of final approval, and the lender will still need to verify your information and appraise the property. It’s also important to understand that you may receive a different rate than your pre-approval.

You can review the difference between pre-approval and mortgage approval here.

In short form, a pre-approved mortgage is when your lender or multiple lenders, confirm that you meet all the requirements for a mortgage and that they will give you a loan if an acceptable property comes onto the market within your price range. A mortgage approval is when your lender confirms that you are approved for the specific amount of money needed for your purchase.

It’s also important for buyers to be aware that a pre-approval letter is not the same thing as mortgage approval. The former is merely an estimate of what you can afford based on your financial situation, while the latter is when your lender officially approves your loan.

Having a pre-approved mortgage will keep you focused on shopping for homes within your price range. If you qualify for a preapproved mortgage, you’ll be certain of the size of mortgage for which you qualify and guaranteed a rate for a specific period of time. If you don’t qualify for a pre-approved mortgage, we will be able to help you estimate a mortgage-qualifying amount.

It’s important to note that the quoted mortgage amount, including the interest rate and fees, can vary depending on your credit history and other factors. If you’re buying a home, it’s important to know the difference between pre-approval and mortgage approval.

When shopping for a mortgage, consider the following factors:

  • Interest rate: The interest rate will affect your monthly mortgage payment and the total cost of your loan over time.
  • Loan term: The length of the loan, typically 15 or 30 years, will also affect the monthly payment and total cost of the loan.
  • Fees and closing costs: Some lenders and financial institutions may charge higher fees or closing costs, which can add to the total cost of the loan.

It’s also a good idea to check the reputation and licensing of each lender on the pre-approval list to ensure that you are working with a reputable and trustworthy lender.

The benefits of working with a mortgage broker or mortgage agent for a pre-approval include:

  • Access to a wider range of lenders and mortgage products: Mortgage brokers work with many different lenders and can help you find the best mortgage loan and mortgage rates for your specific needs.
  • Expertise and knowledge: Mortgage brokers have extensive knowledge of the mortgage industry and can guide you through the pre-approval process and help with your mortgage application.
  • Timesaving: Working with a mortgage broker or mortgage professional can save you time by eliminating the need to shop around for the best mortgage loan offer on your own.


It’s important to choose a reputable and trustworthy mortgage broker or lender for your pre-approval process and once you’re ready to apply for a mortgage. For all your Barrie or surrounding areas mortgage needs, apply today or give us a call!

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