6 Things You Need to be Preapproved for a Mortgage

Before you start house-hunting in Canada, there’s one thing you need to get sorted: your mortgage preapproval. It’s the lender’s way of saying, “Yes, we’re willing to lend you up to this much.” But more than that, preapproval gives you the confidence to shop within your means and negotiate like a serious buyer.
In this guide, we’ll walk you through exactly what preapproval is, what you’ll need to get it, and how it’s different from prequalification. Whether you’re a first-time buyer or gearing up for your next purchase, this is the checklist to have in your back pocket.

What’s the Difference Between Prequalification and Preapproval?

Many people mix up prequalification and preapproval, but they’re not the same thing.

• Prequalification is like a quick check-up. A lender does a surface-level review of your finances and gives you a rough estimate of how much you might qualify to borrow. It’s fast, free, and doesn’t impact your credit score — but it’s not a guarantee.
• Preapproval goes deeper. Your lender will assess your full financial picture — income, employment, debts, credit history, and more — and give you a conditional commitment for a set mortgage amount and interest rate, typically valid for 90 to 120 days. This makes you a much stronger buyer in the eyes of sellers.

6 Things You Need to Get Preapproved for a Mortgage in Canada

1. Government-Issued Identification

You’ll need to prove you are who you say you are. Lenders will ask for official ID such as a Canadian driver’s license, passport, or permanent resident card. This helps prevent identity fraud and confirms your legal eligibility to apply for a mortgage in Canada.

2. Employment Verification

Your lender wants to see that you have a stable income. For employees, this typically means providing:

• A letter of employment stating your position, start date, and salary
• Recent pay stubs

If you’re self-employed, be prepared to show:

• Notices of Assessment from the CRA for the past two years
• Business financials, such as profit/loss statements or bank statements
• Details about your business’s structure and nature

3. Proof of Income

Your income is a big piece of the mortgage puzzle. In addition to job-related income, lenders also want to know about:

• Rental income from investment properties
• Commissions or bonuses
• Government support payments
• Alimony or child support (if applicable)

Having a two-year history of steady income boosts your chances significantly.

4. Proof of Assets

Assets show the lender that you have something to fall back on. Common assets include:

• Cash in savings or chequing accounts
• RRSPs, TFSAs, or other investments
• Real estate holdings
• Vehicles or valuable personal property (in some cases)

Lenders may also ask about the source of your down payment, especially if it’s a large gift from a family member. Be prepared to provide documentation, such as a gift letter.

5. Credit History and Credit Score

Your credit score is one of the most important factors in your mortgage preapproval. It tells lenders how reliable you are at paying back borrowed money.

• A score above 680 is ideal
• Scores between 600–679 are usually okay, but may come with conditions (higher interest rate, lower loan amount)
• Below 600? You might need to work with a B-lender or get a co-signer

Make sure your credit report is accurate. You can get a free copy from Equifax or TransUnion in Canada. If anything looks off, dispute it before applying.

6. Monthly Debts and Expenses

Lenders want to know how much you already owe so they can calculate your debt service ratios (GDS and TDS). They’ll ask for:

• Outstanding loan statements (car loans, student loans, personal loans)
• Credit card balances and minimum monthly payments
• Spousal or child support obligations
• Monthly expenses like property taxes, condo fees, or utilities (for your future home)

If your debt load is too high, your preapproval amount will likely be lower — or you may need to pay off some balances first.

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Getting preapproved is more than just paperwork. It means:

• You know exactly what price range to shop in
• Sellers will take your offer more seriously
• You can lock in an interest rate for up to 120 days
• You’re ready to move quickly if the right home pops up

Remember, preapproval isn’t a guarantee. Your mortgage still needs to be finalized after you make an offer on a specific property. That means the home itself must also pass appraisal and lender scrutiny.

Final Thoughts

Getting preapproved for a mortgage in Canada is one of the smartest moves you can make when starting your homebuying journey. It gives you clarity, leverage, and peace of mind.
With the right documents and preparation, it’s a straightforward process — and we’re here to help you every step of the way. Whether you’re just getting started or already house-hunting, Mortgage.Expert can help you make confident, informed decisions.

Get Preapproved With Confidence

From income docs to your credit score, we break down exactly what lenders want to see. Find out what you need to get mortgage preapproval — and how to boost your chances of success.
View the 6-Step Preapproval Checklist