Mortgage Pre-Approval In Canada: How It Works And How Long It Lasts
A mortgage pre-approval in Canada is a lender's conditional offer to lend up to a set amount at a set rate, usually held for 90 to 120 days, and some lenders go to 130. It involves a credit check and income documents. It is not a final approval, because the property and paperwork are reviewed later. After the October 28, 2026 hike, the length of the hold is worth reading closely.
Pre-Approval Versus Pre-Qualification
People use the two words as if they were one thing. They are different in the way that matters most: how much the lender has checked.
| Feature | Pre-qualification | Pre-approval |
|---|---|---|
| Credit check | Usually a soft check or self-reported figures | Usually a hard credit inquiry |
| Documents | Few or none | Income, ID, down payment and debts reviewed |
| Rate hold | Generally none | Typically 90 to 120 days |
| Stress test | Rough estimate | Qualification includes it |
| Weight with a seller | Low | Higher, still conditional |
A pre-qualification gives a ballpark price range. A pre-approval gives a number a lender has looked at, and, for most borrowers, a rate they can hold while shopping. Neither obliges the borrower to use that lender.
How To Get A Mortgage Pre-Approval
The route is the same whether it goes through a bank branch or a licensed mortgage broker. The sequence:
First, gather the documents in the next section. Second, choose who will pull credit. A hard inquiry can touch the credit score slightly, so it is worth deciding on one or two channels rather than applying everywhere. Third, the lender or broker runs the numbers, including the stress test, and states a maximum loan, a rate and a hold period. Fourth, the borrower receives that in writing. Fifth, shopping for a home begins within the hold window.
A broker can submit to more than one lender from a single set of documents. The broker's role and how brokers are paid are explained in mortgage broker versus bank. For standard prime mortgages the lender usually pays the broker, and the borrower usually pays nothing, though fees can apply on private or complex files and must be disclosed in writing before commitment.
Documents Lenders Ask For
| Document | Detail |
|---|---|
| Government photo ID | Valid and current |
| Recent pay stubs | Most recent, showing year-to-date income |
| T4s and Notices of Assessment | Last 2 years |
| Employment letter | Role, start date, salary |
| Down payment proof | 90 days of bank statements |
| Debt statements | Loans, credit cards, car payments |
| Self-employed extras | Tax returns and supporting business income records |
The 90 days of bank statements show where a down payment came from. Missing pieces slow a file down, so the checklist is worth completing before the application, not after.
A pre-approval usually includes a credit report pulled with the borrower's consent. The lender looks at payment history, credit utilization and the length of history, along with total debt against income. The minimum score differs between lenders and between insured and uninsured files, and this page does not state a number that the sources do not support. A borrower with a score close to a lender's cut-off can ask a broker which lenders suit the profile.
Because the check is usually a hard inquiry, ask the lender or broker how many they will run and whether one inquiry serves several lenders.
The Stress Test Inside A Pre-Approval
Every pre-approval includes qualification under the federal stress test: the borrower must qualify at the higher of the contract rate plus 2 points or 5.25%. A 4.54% rate is tested at 6.54%. On a $500,000 mortgage over 25 years, a payment at 6.54% would be $3,361.25 a month, against $2,778.49 at 4.54%. The lower number is what is actually paid. The higher number is what the lender uses to decide whether the borrower qualifies. The detail is in the stress test guide.
The maximum a lender offers is therefore driven by the stressed payment, not by the contract payment. Income needed for a given loan size is worked through in income for a $400,000 mortgage.
A pre-approval is for a purchase. A borrower renewing without changing the loan amount or lengthening the amortization is in a different position. Since November 21, 2024, OSFI removed the minimum qualifying rate for uninsured straight switches at renewal at federally regulated lenders, and insured switches were already exempt. Lenders still underwrite under their own guidelines, and provincial credit unions follow provincial rules. The renewal route is covered in mortgage renewal rates.
How Long A Pre-Approval Lasts
The rate hold is typically 90 to 120 days, and some lenders extend to 130. After it ends, the rate usually has to be re-quoted, and documents may need a refresh. One board report shows the shape of it: on October 26, 2026 a borrower posted a Scotiabank 120-day hold at 4.6% on a 3-year fixed and 3.6% on a 5-year variable. The variable was quoted against the older 4.45% prime. At prime 4.70% the same discount puts it near 3.85%, if the discount holds. Another borrower posted a broker pre-approval at 3.80% on a 5-year variable the same day.
A held rate protects against increases. Whether it also gives the borrower the lower rate if the market drops depends on the lender, so the question belongs in the conversation before the application.
Fixed Or Variable Hold: The Payment Gap
A pre-approval usually states a rate for one product at a time, so the choice between fixed and variable comes with it. Two board reports give the shape of the gap. A broker quote at B2B for a 5-year fixed, from a rate sheet dated October 21, was 4.54%. A broker pre-approval reported the same week had a 5-year variable at 3.80%, quoted before prime moved, so against the older 4.45% prime. On $500,000 over 25 years the fixed payment is $2,778.49 and the variable at 3.80% is $2,576.17, a difference of $202.32 a month. At prime 4.70% the same discount puts the variable near 4.05%, or $2,643.67, which narrows the gap to $134.82.
The two numbers come from different borrowers on different days, so they are an illustration, not a like-for-like quote. The point for a hold is that the variable is a moving number. If prime rises another 0.25 and the discount stays, the variable becomes 4.30%, the payment $2,712.04 and the gap $66.45. See fixed or variable after a rate hike for the contract differences.
How many days does the hold last, and what is the exact end date? Does the hold apply to the discount on a variable rate, or only to a fixed rate? If rates fall before closing, is the lower rate offered? Is the rate for an insured or uninsured file, since the two can price differently? Is any fee charged, and is it in writing? And what documents will the lender need to refresh at the end of the hold?
Those answers differ by lender, which is the reason to compare. Rate holds quoted on the board ranged across lenders and products in October, from Scotiabank's 120-day hold to broker pre-approvals with the lender not named.
Conditions That Can Undo A Pre-Approval
A pre-approval is conditional. It can fall away if income changes, if a new debt appears, if the credit score drops, or if the property fails an appraisal or does not meet the lender's rules. Changing jobs before closing is the classic case. The insurer rules matter for low down payments. See insured or uninsured mortgages for the thresholds and the $1.5 million cap.
Taking on a car loan or a large credit card balance between pre-approval and closing can shrink the maximum the lender will advance. The safe habit is to keep finances still until the deal funds.
Why Ask A Broker To Pre-Approve
With rates moving, the useful features are the hold and the comparison. A licensed mortgage broker can price a pre-approval across lenders, and hold a rate. The broker can also compare fixed and variable for the same hold. Right now, with prime at 4.70% and the Bank of Canada saying a further increase may be needed, the length of that hold is worth treating as a feature. Request cheaper rates and ask for the longest hold available, priced for both a 5-year fixed and a variable, so the payment on each is written down before house hunting starts. The rate board shows what other borrowers reported for comparison.
For buyers, the market backdrop is covered in whether it is a good time to buy a house. Nothing here is advice on the final choice. It is a description of how the process works and what to ask.
Questions
How long does a mortgage pre-approval last?
Typically 90 to 120 days, and some lenders hold a rate for up to 130. After that the rate is usually re-quoted and documents may need to be refreshed.
What documents do I need for a mortgage pre-approval in Canada?
Photo ID, recent pay stubs, two years of T4s or Notices of Assessment, an employment letter, 90 days of bank statements for the down payment and debt statements. Self-employed borrowers add tax returns.
Does a pre-approval hurt my credit score?
It usually involves a hard credit inquiry, which can have a small effect. Pre-qualification is usually a soft check or self-reported. Ask the lender or broker which one applies before you consent.
How long does it take to get pre-approved for a mortgage?
With complete documents it can be fast, but the time depends on the lender and on how clean the file is. Missing paperwork is the most common cause of delay.
Is a pre-approval a guarantee of a mortgage?
No. It is conditional. The property, the appraisal and the borrower's finances are reviewed again before final approval. See the stress test guide for how the limit is set.