Mortgage Pre-Approval in Ontario: How It Works & Why You Need It

What Is a Mortgage Pre-Approval?

A mortgage pre-approval is a lender’s conditional commitment to loan you a specific amount at a set interest rate for 90-120 days. It’s based on your credit, income, and debt, helping you:
✅ Lock in the best mortgage rates Ontario offers (even if rates rise later).
✅ Shop confidently—sellers take pre-approved buyers seriously.
✅ Budget accurately—know your max home price before house hunting.

How Mortgage Pre-Approval Works in Ontario

1. Check Your Credit Score

Lenders require a credit score of 680+ for the best mortgage loan rates. Use free tools to review your report and fix errors.

2. Compare Current Mortgage Rates

Rates vary by lender. Use Rateshop.ca to compare:

• Fixed vs. variable rates

• 5-year mortgage rates in Canada

• Brokered mortgage loans (often lower than big banks).

3. Submit Documents

Prepare:

• Proof of income (pay stubs, tax returns)

• Down payment verification (bank statements)

• ID and employment details.

4. Get Your Pre-Approval Letter

Once approved, you’ll receive a rate hold and a purchase power estimate.

Why You Need Pre-Approval

1. Secure the Lowest Mortgage Rates Ontario Offers

Pre-approvals freeze your rate, protecting you from hikes. With current mortgage rates in Ontario near historic lows, locking in saves thousands.

2. Strengthen Your Offer

Sellers prioritize buyers with pre-approved mortgage loans—it proves you’re financeable.

3. Avoid Surprises

Pre-approval uncovers issues (e.g., low credit) early, so you can fix them before bidding.

Pre-Approval vs. Final Approval

How to Get the Best Pre-Approval Deal

1. Shop Multiple Lenders: Compare mortgage brokers and banks for the best mortgage rates Canada offers.

2. Ask About Penalties: Some lenders charge fees if you switch later.

3. Use a Mortgage Calculator: Estimate payments with today’s interest rate for Canada here.

Common Pre-Approval Mistakes to Avoid

❌ Assuming pre-approval = final approval (the property must also qualify).
❌ Letting your pre-approval expire (rates aren’t guaranteed after 120 days).
❌ Making big financial changes (e.g., new loans) before closing.

Next Steps: Get Pre-Approved Today

Ready to lock in Ontario’s lowest mortgage rates? Compare pre-approved mortgage lenders at Rateshop.ca/current-mortgage-rates-Ontario and start house hunting with confidence!