Housing guide · Updated October 5, 2026
Mortgage pre-approval: a step-by-step guide
A pre-approval tells you the most a lender may lend you, estimates your payment, and can hold an interest rate for 60 to 130 days while you shop.
Rate hold
60 to 130 days
depends on the lender
Housing costs limit (GDS)
39%
of gross household income
Total debt limit (TDS)
44%
housing plus all other debts
How to get pre-approved
- 1Check your credit report from Equifax and TransUnion and fix any errors first.
- 2Gather your documents (list below).
- 3Apply with two or three lenders or a mortgage broker. Each will run a credit check.
- 4Compare the maximum amount, the rate, and how long each lender holds the rate.
- 5Get the pre-approval in writing, then shop below your maximum.
Documents lenders ask for
- ✓Government photo ID.
- ✓Proof of employment and income: a recent pay stub and your position and time with the employer.
- ✓If you're self-employed: your CRA Notices of Assessment for the past 2 years.
- ✓Proof of your down payment and closing-cost money, such as recent bank or investment statements.
- ✓Details of your other assets and of every debt payment: cards, car loans, lines of credit, student loans, support payments.
How lenders decide how much you can borrow
Lenders compare your monthly costs with your gross (before-tax) income. Housing costs (mortgage payment, property tax, heating and half of any condo fees) generally shouldn't exceed 39% of gross household income. Housing costs plus all other debt payments generally shouldn't exceed 44%.
Banks must also stress-test you: you have to qualify at the higher of 5.25% or your negotiated rate plus 2%, for both insured and uninsured mortgages. That rule, more than your actual rate, sets your maximum.
Pre-approval is not a guarantee
A lender can still refuse the final mortgage, for example if the property doesn't meet its standards, your finances change or your credit worsens. Avoid new loans or credit applications until you close, and remember you'll need money for closing and moving costs on top of the down payment.
Frequently asked questions
How long does a mortgage pre-approval last?
Lenders typically hold the pre-approved rate for 60 to 130 days, depending on the lender. Ask whether you'll get a lower rate automatically if rates fall during that time.
Does a pre-approval hurt my credit score?
The lender usually runs a credit check, which can lower your score slightly. Several mortgage checks within a short shopping window have a smaller effect than spreading applications out.
What income do I need for a mortgage?
It depends on the home price, your down payment, your other debts and the stress-test rate. Your housing costs should stay under 39% of gross income and all debts under 44%. Try our affordability calculator for your numbers.
Can I be refused after being pre-approved?
Yes. The final approval depends on the property and on your finances at closing, so keep your job, debts and credit stable until then.
Related tools
Sources
Figures checked against these official sources on October 5, 2026. We re-check them every week; see what changed.
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