Irina Marchenkova · RE/MAX Realtron Realty
How to get a mortgage pre-approval in Ontario: documents, the stress test, credit score, how much you can afford, and how long a rate hold lasts.
By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Last updated October 2026
A mortgage pre-approval is the first real step in buying a home in Ontario. It tells you how much a lender is willing to lend, locks in an interest rate for a few months, and shows sellers you are a serious buyer. This guide explains how pre-approval works in Ontario, what lenders look at, the documents you need, and the mistakes that can cost you the home you want.
A pre-qualification is a quick estimate based on what you tell the lender, often online, with no documents checked. A pre-approval is more reliable: the lender checks your credit and reviews your income and down payment documents before telling you what you qualify for. In a competitive Toronto market, sellers and their agents take a pre-approval far more seriously.
| Category | Typical documents |
|---|---|
| Identity | Government photo ID; for newcomers, a permanent resident card or work permit |
| Employment income | Recent pay stubs and a job letter showing position, salary and start date |
| Self-employed income | Two years of Notices of Assessment and T1 Generals, plus business financial statements |
| Down payment | 90 days of bank or investment statements, or a signed gift letter from family |
| Debts | Statements for loans, lines of credit, car payments, support payments |
| Other income | Rental income, pension or government benefits, with proof |
Every federally regulated lender must check that you could still afford your payments if rates went up. You qualify at the higher of 5.25% or your contract rate plus 2%. If your rate is 4.5%, you are tested at 6.5%. This is why your approval amount is usually lower than you might expect from today’s rates alone.
Lenders compare your housing costs and total debts to your gross income. For insured mortgages (less than 20% down), the usual limits are about 39% for housing costs (mortgage, property tax, heating and half of condo fees) and 44% for all debts combined. Paying down a car loan or line of credit before you apply can noticeably increase what you qualify for.
For an insured mortgage, at least one borrower generally needs a credit score of around 600 or higher, and higher scores get better rates. Newcomers without Canadian credit can use special programs; see my newcomer buyer guide.
The minimum is 5% of the first $500,000 and 10% of the portion up to $1.5 million; homes over $1.5 million need 20% down. Read my down payment guide for details.
Even with a pre-approval, most buyers include a financing condition in their offer, unless they are competing in multiple offers and their lender has already reviewed the property.
Once you’re pre-approved, I’ll help you find homes that fit your budget, not just your maximum, and connect you with trusted mortgage specialists if you don’t have one yet. See my first-time buyer guide and closing costs guide, or get in touch.
Most pre-approvals and rate holds last 90 to 120 days. If you have not bought by then, ask your lender to renew it with updated documents.
A pre-approval usually involves a credit check, which can have a small, temporary effect on your score. Several mortgage checks within a short period are generally treated much like one.
No. Final approval depends on the specific property, its appraisal, and your income, debts and credit staying the same until closing.
It depends on your income, debts, credit and down payment, and on qualifying at the stress-test rate. A lender or mortgage broker can give you an exact figure.
Both can pre-approve you. A bank offers its own products; a broker compares many lenders, which can help if you are self-employed, new to Canada or have less-than-perfect credit.
General information, not mortgage or financial advice. Lending rules and rates change; confirm the details with a licensed mortgage professional.
Trusted, independent sources I recommend to my clients (links open in a new tab):
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