If you’re thinking about buying a home in British Columbia, the smartest first step is getting pre-approved for a mortgage. A pre-approval gives you a clear idea of what you can afford and helps you shop with confidence in a competitive market.
In this guide, I will explain what a mortgage pre-approval is, why it matters, what documents you will need, and how I can help you secure one quickly and easily.
What Is a Mortgage Pre-Approval?
A mortgage pre-approval is a written statement from a lender that shows how much they’re willing to lend you based on your financial situation. It typically includes:
- The maximum amount you can borrow
- An interest rate (usually valid for 90 to 120 days)
- A conditional approval based on your income, credit, and down payment
Getting pre-approved is not the same as final mortgage approval, but it gives you a strong head start in the home-buying process.
Why It Matters
BC’s housing market moves fast, especially in areas like Vancouver, Victoria, and Kelowna. Sellers want to know buyers are serious — and a pre-approval shows that you’re financially ready to make an offer.
Here’s why a pre-approval gives you an edge:
- You will know exactly how much you can afford
- You can lock in a rate before market rates go up
- Your offer is more attractive to sellers
- You avoid delays when it's time to finalize the deal
Without a pre-approval, you risk falling in love with a home that’s out of your price range or missing out on a hot property while you scramble to get your financing in order.
What You Need to Get Pre-Approved
To get pre-approved, lenders will want to review your:
- Government-issued ID
- Proof of income (pay stubs, T4s, or income tax returns)
- Proof of employment or self-employment
- Recent bank statements
- Credit report (I can pull this for you with some initial paperwork completed)
- Down payment source (savings, RRSP, gift letter, etc.)
The process can usually be done in two to three business days, depending on how quickly you provide your documents.
How Much Can You Get Pre-Approved For?
Lenders determine your maximum mortgage using two key formulas:
- Gross Debt Service (GDS) Ratio: How much of your income goes toward housing costs (mortgage, property taxes, heating, and condo fees if applicable).
- Total Debt Service (TDS) Ratio: How much of your income goes toward all debts, including car loans, credit cards, and housing.
How Long Does a Pre-Approval Last?
Most mortgage pre-approvals are valid for 90 to 120 days. During that time, your interest rate is locked in — giving you protection if rates go up. If rates go down, many lenders will offer you the lower rate.
If your pre-approval expires before you buy a home, we can renew or update it based on your most recent financial information.
What Happens After You Are Pre-Approved?
Once you’re pre-approved, you can:
- Start house hunting with a clear price range
- Submit offers with more confidence
- Work with your realtor knowing your financing is in place
When you find a home and your offer is accepted, I will handle the mortgage process by submitting the final paperwork to the lender. Because we will have already done the groundwork, this part is much faster.
How a Mortgage Broker Helps
As a mortgage broker, I work with over 40 lenders — including banks, credit unions, and monoline lenders — to find the best pre-approval options for your situation.
I can help you:
- Understand how much you can realistically afford
- Shop for the best rates and terms
- Gather and review your documents
- Avoid common pre-approval mistakes
Final Thoughts
A mortgage pre-approval is a simple but powerful step that sets you up for success when buying a home. It gives you clarity, leverage, and peace of mind in one of the biggest purchases of your life.
If you are ready to start the home-buying journey or just want to know your numbers, reach out today. I’ll walk you through the pre-approval process and get you on the path to homeownership with confidence.