How to Get Pre-Approved for a Mortgage in Ottawa
What Is a Pre-Approval?
A mortgage pre-approval is a written statement from a lender confirming that you're qualified to borrow up to a certain amount based on your income, credit score, and financial health. It isn't a guarantee you'll get a mortgage, but it shows you're a serious buyer with borrowing power.
When a lender pre-approves you, they assess your creditworthiness by looking at your credit report, debt-to-income ratio, employment status, and savings. If you're successful, you'll receive a pre-approval letter stating the loan amount, interest rate, and how long the offer is valid.
Why a Pre-Approval Matters
Helps You Understand What You Can Afford
A pre-approval gives you a clear budget for house hunting. Instead of guessing, you know exactly how much a lender is willing to offer.
Makes You Competitive in a Hot Market
In Ottawa's competitive housing market, being pre-approved makes your offer more attractive. Sellers prefer buyers who already have financial backing.
Saves Time During the Mortgage Process
Pre-approval speeds up the final mortgage approval process. Since many financial checks are already done, the closing process tends to move faster.
How to Get Pre-Approved
Connect With a Mortgage Broker or Lender
Start by reaching out to a mortgage broker or directly to a lender. A broker can help you compare rates and offers from multiple institutions. Lenders include banks, credit unions, and online mortgage providers.
Gather Your Documents and Credit History
To get pre-approved for a mortgage, you'll need to provide:
Proof of income (pay stubs, T4s, or tax returns)
Employment verification
Recent bank statements
Government-issued ID
Consent to pull your credit report
The lender will use this information to assess your financial health and credit history.
Submit Your Application
Once your paperwork is ready, your broker or lender will submit a formal pre-approval application. This includes a "hard pull" on your credit, which may temporarily impact your score by a few points.
You’ll typically receive a response within a few days. If approved, you'll get a letter stating your maximum loan amount, estimated interest rate, and the validity period—usually between 60 and 120 days.
Factors Impacting Pre-Approval
Several variables affect how much you’re pre-approved for:
Credit Score: Higher scores mean better rates and larger loan amounts.
Income Stability: Consistent employment history shows lenders you’re low risk.
Debt-to-Income Ratio: Less debt = higher pre-approval.
Down Payment Amount: The more you can put down, the more you may qualify for.
Assets and Savings: Lenders want to see you have backup funds for closing costs or emergencies.
Making the Most out for Your Pre-Approval
A pre-approval doesn’t mean you should max out your budget. Stay within comfortable monthly payment limits and leave room for other expenses like home maintenance, insurance, and property taxes.
Don’t make major financial changes during this time. Avoid opening new credit lines, switching jobs, or making large purchases until your mortgage is finalized.
Frequently Asked Questions
What’s the Difference Between Pre-Approval, Mortgage Approval, and Pre-Qualification?
Pre-Qualification is a quick estimate based on self-reported data. It’s not verified.
Pre-Approval involves a credit check and document review. It’s more formal.
Mortgage Approval happens after you’ve made an offer on a home. It includes a property appraisal and full financial review.
Can I Get Pre-Approved With Bad Credit?
Yes, but options may be limited. You might face higher interest rates or need a larger down payment. Some lenders specialize in helping borrowers with lower credit scores.
Improving your credit before applying can expand your options and lower your rates.
Will a Pre-Approval Impact My Credit Score?
Yes, slightly. A pre-approval requires a hard credit inquiry, which can lower your score by a few points. This is normal and usually temporary. It’s best to keep all mortgage-related inquiries within a 45-day window so they count as one inquiry for scoring purposes.
How Long Does a Pre-Approval Take?
A mortgage pre-approval usually takes anywhere from a few minutes to a few days, depending on how you apply and how complex your financial situation is.
Instant / Same-Day Pre-Approval: Many lenders and mortgage brokers now offer online applications that can generate a conditional pre-approval within minutes to a few hours, provided you submit all required information (income, employment details, credit consent, etc.) and your financial profile is straightforward.
1–3 Business Days: If the lender requires manual review, such as checking pay stubs, employment letters, tax documents, or dealing with variable income (self-employed, commission-based, multiple properties), it can take a couple of days.
Up to a Week (or longer): In cases where extra verification is needed (e.g., unusual income sources, recent credit issues, or incomplete documents), the process may take up to a week or more.
The fastest way to keep the process smooth is to prepare your documents in advance (recent pay stubs, employment letter, tax returns, bank statements, ID).
Thinking of buying in Ottawa? Getting pre-approved is your first smart step. Talk to a local mortgage broker today to understand your options and start your home search with confidence.
We have an excellent network of trusted mortgage brokers we've worked with for years. Contact us, if you'd like help finding the right one and we can provide a list of referrals tailored to your needs and financial situation!
Additional Resources
Mortgage and Monthly Costs Calculators
Mortgage Brokers vs. Banks: Which to Choose in the Ottawa Market
Date the Rate, Marry the House
CMHC: Check if you are Financially Ready to Own a Home
Mortgage Alliance: Mortgage Pre-Approval
Canada.ca: Get Pre-Approved for a Mortgage
