Mortgage pre-approval: what it is and how to get one in Toronto
A pre-approval sets a clear baseline for your home search by holding an interest rate for up to 120 days and showing your maximum purchase power. By reviewing your income, debts and credit profile before you look at properties, we help you shop with confidence and make offers knowing your financing has already been reviewed.
Why get pre-approved before shopping?
Interest rate hold
Hold a rate for up to 120 days to protect yourself if rates rise while you look for a home.
Stress test clarity
See your qualifying power at the stress test rate, which is the higher of 5.25% or your contract rate plus 2%.
Stronger offers
Your realtor and the seller can see that your financing has been reviewed by a licensed agent.
Fewer surprises
Spot and fix credit or documentation gaps early so your final approval moves without delay.
Run your numbers
Estimate the largest mortgage you can qualify for under the stress test, and the income it takes.
What do lenders review for a pre-approval?
- Income verificationPay stubs, job letters, or Notices of Assessment (NOAs) for self-employed applicants.
- Down payment confirmationBank statements showing 90 days of accumulated savings, or a signed gift letter from immediate family.
- Debt ratiosVerification that your Gross Debt Service (GDS) ratio stays within 39% and your Total Debt Service (TDS) within 44% on insured loans.
Questions, answered
Does a pre-approval guarantee I get the mortgage?
A pre-approval confirms your qualifying power based on your credit and financial documents. Final approval depends on the property you buy meeting the lender's appraisal and underwriting criteria.
How long does a mortgage pre-approval last?
On a purchase, a pre-approval can hold your rate for up to 120 days. If your search takes longer, we update your documents and request a new rate hold.
Related
Rules and figures current as of October 2026.