What is Mortgage Pre-Approval?
Imagine walking into an open house with a golden ticket—a document that tells sellers and real estate agents you're a serious, qualified buyer. That's essentially what a mortgage pre-approval is. It's a conditional commitment from a lender for a specific loan amount, based on a real assessment of your finances.
This isn't just a casual estimate. It's a thorough financial check-up where a lender verifies your income, assets, debt, and credit history. The result? A clear understanding of your borrowing power, which transforms you from a window shopper into a confident contender in the housing market.
Why It's Your Most Important First Step
Shop with Confidence
You'll know exactly how much you can afford, allowing you to search for homes within your budget. No more falling in love with a house only to find out it's out of reach.
Be a Stronger Buyer
Sellers are more likely to accept an offer from a pre-approved buyer because there's less risk of the deal falling through. In a competitive market like Newfoundland's, this can be the deciding factor.
Speed Up Closing
Since most of your financial information is already verified, the final mortgage approval process is much faster and smoother once you have a signed purchase agreement.
Hold Your Rate
Most lenders in Canada will offer a rate hold for 90-120 days. This protects you if interest rates rise while you're house hunting.
Estimate Your Realistic Pre-Approval Amount
This calculator provides a realistic estimate based on current Canadian lending rules, including the OSFI stress test. Always consult a lender for an official pre-approval.
Car payments, student loans, credit card payments. (Exclude rent).
Your estimated pre-approval amount will appear here.
Your Pre-Approval Checklist
Getting pre-approved is a clear, step-by-step process. Click on each item as you complete it to track your progress!
Getting pre-approved is the first, most empowering step on your journey to homeownership. It replaces uncertainty with clarity and confidence.Ready to Take the Next Step?
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