Mortgage Pre-Approval in Ontario: What Home Buyers Need to Know
You have found a home you like. The price looks manageable, the location works, and you are ready to start thinking about an offer. Then you speak with a lender and realize the mortgage amount you expected is not quite what you can qualify for. Getting a mortgage pre-approval in Ontario before you get serious about house hunting can help avoid that situation. It gives you a better idea of your borrowing range, possible payments and the price range you should be looking at. What Does Mortgage Pre-Approval Actually Mean? A mortgage pre-approval is an early review of your financial situation by a lender or mortgage professional. They may look at your income, employment, debts, credit history and down payment to estimate how much you may be able to borrow. Depending on the lender, you may also receive a mortgage rate hold for a set period. According to the Financial Consumer Agency of Canada (FCAC) , a mortgage pre-approval is an early review of your financial situation that can he...