A pre-approval locks a rate and tells sellers you're ready to move. Here's exactly what it is, what lenders check, and how to walk in prepared.
Gather your documents
Recent pay stubs, a T4 or Notice of Assessment, ID, and a list of your existing debts (car loan, credit cards, student lines of credit).
Apply with a lender or mortgage broker
A broker can shop your file across multiple lenders at once, often surfacing a better rate than walking into a single bank branch.
Get your rate hold and pre-approval letter
The lender confirms roughly what you qualify for and locks today's rate for 90–120 days — protection if rates rise while you're searching.
Start touring with confidence
You now know your real budget and can hand your letter to a seller's agent alongside any offer to show you're financeable.
GDS (Gross Debt Service) caps your mortgage, property tax, heat, and (if applicable) condo fees at roughly 39% of your gross income. TDS (Total Debt Service) adds every other debt payment — car loans, credit cards, student debt — and caps the total around 44%. Lenders also stress-test you against a higher “qualifying rate,” not just your contract rate, so your real approved amount is often lower than a quick back-of-envelope guess.
How the stress test works (FCAC, Government of Canada) →
Book a free, no-obligation mortgage consultation with Narges, or run your own numbers first.
