Getting Pre-Approved in Burnaby: A Local First-Time Buyer’s Guid

by Yinon Filler

What is Mortgage Pre-Approval?

Mortgage pre-approval is a crucial step in the home-buying process, especially in competitive markets like Burnaby. It involves a lender evaluating your financial situation—such as income, debts, and credit history—to determine the maximum loan amount you qualify for. This process provides you with a pre-approval letter, which can strengthen your position when making an offer on a home.

The Difference Between Pre-Approval and Pre-Qualification

Understanding the distinction between pre-approval and pre-qualification is essential:

Pre-Qualification: This is an informal assessment where you provide estimated financial information to a lender, who then gives you a general idea of the loan amount you might qualify for. It's a quick process that doesn't involve a credit check or verification of financial documents.
Pre-Approval: This is a more rigorous process where the lender verifies your financial information and performs a credit check. You'll need to provide documentation such as pay stubs, tax returns, and bank statements. The result is a pre-approval letter stating the specific loan amount you're eligible for, giving you a more accurate understanding of your budget.

Why Pre-Approval is Essential in Burnaby’s Fast-Moving Market

Burnaby's real estate market is known for its competitiveness, with homes often receiving multiple offers shortly after listing. In such an environment, having a mortgage pre-approval offers several advantages:

Demonstrates Seriousness: Sellers are more likely to consider offers from buyers who have been pre-approved, as it indicates financial readiness and commitment.
Speeds Up the Buying Process: With pre-approval, much of the financial vetting is already complete, allowing for a quicker closing process.
Clarifies Budget: Knowing your exact borrowing limit helps you focus on homes within your price range, saving time and reducing the risk of falling in love with a property you can't afford.

Key Benefits of Pre-Approval

Understand Your Budget Before You Shop

Obtaining a mortgage pre-approval provides a clear picture of how much you can afford to spend on a home. This clarity helps you focus your search on properties within your budget, saving time and reducing the risk of financial overextension. Additionally, pre-approval offers an estimate of your monthly mortgage payments, aiding in effective financial planning.

Strengthen Your Offer in Competitive Situations

In Burnaby's competitive real estate market, a pre-approval letter signals to sellers that you're a serious and financially prepared buyer. This can make your offer more attractive, especially in multiple-offer scenarios, by demonstrating your ability to secure financing promptly. Some lenders also offer rate locks during the pre-approval period, protecting you from potential interest rate increases while you search for a home.

Streamline the Mortgage Process Later On

Having a pre-approval in place can expedite the mortgage approval process once you've made an offer on a property. Since much of the financial vetting is already completed during pre-approval, the final approval process can proceed more smoothly and quickly, reducing the time to closing. This efficiency can be a significant advantage in fast-paced markets like Burnaby.

When Should You Get Pre-Approved?

Ideal Timing Before Searching for Homes

It's advisable to obtain mortgage pre-approval before you begin house hunting. This step provides a clear understanding of your budget, allowing you to focus on homes within your price range. Pre-approval also demonstrates to sellers that you're a serious buyer, which can be advantageous in competitive markets like Burnaby. While some experts suggest getting pre-approved one to two weeks before starting your home search, initiating the process earlier can be beneficial. Starting early gives you time to address any financial issues that may arise during the pre-approval process. For instance, if there are discrepancies in your credit report or if you need to improve your debt-to-income ratio, you'll have the opportunity to make necessary adjustments. Additionally, early pre-approval can help you understand the various mortgage options available, allowing you to choose the best fit for your financial situation.

How Long Pre-Approvals Are Valid (Typically 60–120 Days)

Mortgage pre-approvals in Canada are generally valid for 60 to 120 days, depending on the lender. This validity period allows you to shop for a home with the confidence that your financing is in place. It's important to note that if your pre-approval expires before you purchase a home, you'll need to reapply, which may involve providing updated financial information. Some lenders offer rate holds during the pre-approval period, protecting you from potential interest rate increases. However, if rates decrease, you may be able to negotiate a lower rate upon final approval.

What Do Lenders Evaluate During Pre-Approval?

When seeking mortgage pre-approval in Burnaby, lenders assess several key factors to determine your eligibility and the loan amount you qualify for. Understanding these criteria can help you prepare effectively and increase your chances of approval.

Credit Score Expectations in Canada

Your credit score is a crucial component in the pre-approval process. In Canada, credit scores range from 300 to 900. Generally, a score of 680 or higher is considered good and can qualify you for competitive interest rates. Scores between 600 and 679 may still be acceptable but could result in higher interest rates or require additional conditions. Scores below 600 may limit your options to alternative lenders with less favorable terms.

Employment and Income Stability

Lenders seek assurance that you have a stable and sufficient income to meet mortgage payments. For salaried employees, this typically involves providing recent pay stubs, a letter of employment, and Notices of Assessment from the Canada Revenue Agency for the past two years. Self-employed individuals may need to provide additional documentation, such as business financial statements and tax returns, to verify consistent income.

Debt-to-Income Ratio Benchmarks

The debt-to-income (DTI) ratio is a measure of your monthly debt obligations relative to your gross monthly income. Lenders use two main ratios:

Gross Debt Service (GDS) Ratio: This ratio considers housing-related expenses, including mortgage payments, property taxes, heating costs, and 50% of condo fees. A GDS ratio of 32% or less is typically required.
Total Debt Service (TDS) Ratio: This ratio includes all monthly debt payments, such as credit cards, car loans, and personal loans, in addition to housing costs. A TDS ratio of 40% or less is generally acceptable.

Maintaining these ratios within the recommended limits demonstrates to lenders that you can manage additional debt responsibly.

Lender Pre-Approval Criteria Comparison

Criteria	TD Canada Trust	RBC Royal Bank	National Bank
Minimum Credit Score	680+	680+	680+
GDS Ratio Limit	≤ 32%	≤ 32%	≤ 32%
TDS Ratio Limit	≤ 40%	≤ 40%	≤ 40%
Employment Documentation	Required	Required	Required
Self-Employed Requirements	2 years of NOAs	2 years of NOAs	2 years of NOAs
Pre-Approval Validity	120 days	120 days	90 days

Note: Criteria may vary based on individual circumstances and lender policies.

Required Documents for Mortgage Pre-Approval

Before seeking mortgage pre-approval in Burnaby, it's essential to gather specific documents that lenders require to assess your financial readiness. Having these documents organized can streamline the pre-approval process and demonstrate your preparedness as a buyer.

Proof of Income (T4s, Pay Stubs, etc.)

Lenders need to verify your income to ensure you can manage mortgage payments. Depending on your employment status, the required documents may include:

Salaried or Hourly Employees:

Recent pay stubs (typically the last two)
T4 slips from the previous year
Letter of employment detailing your position, length of employment, and salary

Self-Employed Individuals:

Two years of Notices of Assessment from the Canada Revenue Agency
T1 General tax returns
Financial statements prepared by a certified accountant

These documents help lenders assess the stability and consistency of your income.

Bank Statements & Liabilities

To evaluate your financial health, lenders will request:

Bank Statements:

Recent statements (usually from the last 90 days) for all accounts, including savings, chequing, and investment accounts

Liability Information:

Details of existing debts such as credit cards, car loans, student loans, and lines of credit
Monthly payment amounts and outstanding balances for each debt

This information allows lenders to calculate your debt-to-income ratio, a key factor in determining mortgage eligibility.

Government-Issued Photo ID

To confirm your identity, you'll need to provide:

A valid government-issued photo identification, such as a driver's license or passport
Your Social Insurance Number (SIN) for credit verification purposes

Ensuring your identification documents are current and accurate is crucial for the pre-approval process.

Pre-Approval Document Checklist

Recent pay stubs
T4 slips
Letter of employment
Notices of Assessment (for self-employed individuals)
Bank statements (last 90 days)
Details of existing debts
Government-issued photo ID
Social Insurance Number

Having these documents ready can expedite your mortgage pre-approval and position you as a serious buyer in Burnaby's competitive housing market.

Burnaby-Specific Mortgage Considerations

Average Home Prices by Property Type

As of early 2025, Burnaby's real estate market showcases a range of property types catering to diverse buyer preferences. Understanding the average prices can help prospective homeowners set realistic expectations and budgets.

Property Type	Average Price	Year-over-Year Change
Detached Home	$2,061,000	+3.7%
Townhouse	$1,138,100	+3.0%
Condominium	$773,400	+1.0%

These figures indicate a steady appreciation across all property types, with detached homes experiencing the most significant increase.

Local Lending Rates and How They Compare

Mortgage rates in Burnaby vary depending on the lender and the type of mortgage product. As of April 15, 2025, the following rates are available:

Lender	5-Year Fixed Rate	5-Year Variable Rate
Butler Mortgage	3.74%	3.89%
Vancity Credit Union	3.89%	4.04%
Coast Capital Savings	3.84%	3.99%

Credit unions like Vancity and Coast Capital Savings often offer competitive rates, especially for members, and may provide more personalized service compared to larger banks.

Neighbourhood Price Trends & Buyer Profiles

Burnaby comprises several neighborhoods, each with its unique real estate dynamics:

Metrotown: Known for its high-density living and proximity to shopping centers, Metrotown offers a range of condominiums appealing to young professionals and investors.
Brentwood: An area undergoing significant redevelopment, Brentwood attracts buyers looking for modern condos and townhouses with easy access to transit.
Burnaby North: Featuring a mix of detached homes and townhouses, this area is popular among families seeking suburban living with urban conveniences.
Burnaby South: Offers a variety of housing options, including detached homes and apartments, catering to diverse demographics.

Understanding the nuances of each neighborhood can help buyers align their preferences with the right location.

Where to Get Pre-Approved in Burnaby

Securing a mortgage pre-approval is a pivotal step in the home-buying process. In Burnaby, prospective homeowners have several avenues to explore, each with its unique advantages.

Big Banks vs. Local Credit Unions

Big Banks: Major financial institutions like RBC, TD, and Scotiabank offer a broad range of mortgage products. They provide the convenience of extensive branch networks and established online platforms. However, their rates and terms are often standardized, leaving limited room for negotiation.

Local Credit Unions: Institutions such as Vancity and Prospera Credit Union cater specifically to the local community. They often provide competitive rates and more personalized service. For instance, as of April 2025, Vancity offers a 5-year fixed-rate mortgage at 3.89% for insured residential properties. Credit unions may also be more flexible in accommodating unique financial situations.

Mortgage Brokers: Pros, Cons & Local Options

Pros:

Access to Multiple Lenders: Mortgage brokers can shop around to find the best rates and terms across various financial institutions.
Personalized Advice: They can tailor mortgage solutions to fit individual financial circumstances.
Time-Saving: Brokers handle much of the legwork, simplifying the application process.

Cons:

Potential Fees: Some brokers may charge fees, though many are compensated by lenders.
Varied Service Quality: The level of service can differ between brokers, so it's essential to research and choose reputable professionals.

Local Options:

True North Mortgage: Located in Metropolis at Metrotown, they offer competitive rates and a streamlined application process.
Custom Mortgages: A Burnaby-based brokerage providing tailored mortgage solutions for various financial situations .
McKay Wood: A certified mortgage broker with over a decade of experience assisting Burnaby residents.

Online Lenders: Are They Worth Considering?

Online mortgage lenders have gained popularity for their convenience and competitive rates. Platforms like Fairstone allow applicants to complete the entire mortgage process digitally, which can be advantageous for tech-savvy individuals or those with tight schedules.

Advantages:

Speed: Faster application and approval processes.
Accessibility: 24/7 access to mortgage tools and resources.

Considerations:

Limited Personal Interaction: May not offer the personalized guidance found with in-person brokers or lenders.
Digital Literacy Requirement: Requires comfort with online platforms and digital document submission.

In conclusion, Burnaby homebuyers have diverse options for obtaining mortgage pre-approval. Evaluating the pros and cons of each—be it big banks, local credit unions, mortgage brokers, or online lenders—can help determine the best fit for individual needs and preferences.

How to Compare Pre-Approval Offers

When evaluating mortgage pre-approval offers in Burnaby, it's essential to consider several key factors to ensure you select the best option for your financial situation.

Fixed vs. Variable Rates

Understanding the difference between fixed and variable mortgage rates is crucial:

Fixed Rates: These rates remain constant throughout the mortgage term, providing predictable monthly payments. As of April 2025, some lenders offer 5-year fixed rates as low as 3.69%.
Variable Rates: These rates fluctuate with the Bank of Canada's prime rate. While they can start lower than fixed rates, they carry the risk of increasing over time. For instance, variable rates are projected to drop to around 4% in 2025.

Choosing between fixed and variable rates depends on your risk tolerance and financial stability.

Term Length and Payment Flexibility

Mortgage terms in Canada typically range from 6 months to 10 years, with 5 years being the most common TD Bank. Longer terms offer rate stability, while shorter terms may provide more flexibility.

Additionally, consider the payment flexibility options:

Prepayment Privileges: Some lenders allow you to make extra payments or increase your regular payments without penalties.
Payment Holidays: Certain lenders offer the option to skip a payment under specific circumstances.

Reviewing these features can help you manage your mortgage more effectively.

Additional Fees and Penalties

Be aware of potential fees and penalties associated with your mortgage:

Prepayment Penalties: If you pay off your mortgage early, you may incur penalties. For fixed-rate mortgages, this could be the greater of three months' interest or an amount calculated using the interest rate differential (IRD).
Administrative Fees: Some lenders charge fees for services like mortgage transfers or early renewals.

Understanding these costs upfront can prevent unexpected expenses later.

Sample Pre-Approval Offers From 3 Lenders

Lender	5-Year Fixed Rate	Prepayment Privileges	Prepayment Penalties
TD Canada Trust	3.74%	15% lump sum annually	Greater of 3 months' interest or IRD RBC Royal Bank
Vancity Credit Union	3.89%	20% lump sum annually	3 months' interest
True North Mortgage	3.69%	20% lump sum annually	3 months' interest or IRD

Note: Rates and terms are subject to change. Always consult with the lender for the most current information.

By carefully comparing these aspects of mortgage pre-approval offers, you can make an informed decision that aligns with your financial goals and circumstances.

What to Do if You're Denied Pre-Approval

Facing a mortgage pre-approval denial can be disheartening, but it's not the end of your homeownership journey. Understanding the reasons behind the denial and taking proactive steps can improve your chances in future applications.

Common Reasons for Rejection

Lenders may decline a mortgage pre-approval for various reasons, including:

Low Credit Score or Limited Credit History: A credit score below 600 can hinder approval, as lenders view it as a higher risk.
High Debt-to-Income Ratio: If your existing debts consume a significant portion of your income, lenders might be concerned about your ability to manage additional mortgage payments.
Unstable Employment or Income: Recent job changes, especially to a different industry, or inconsistent income can raise red flags for lenders.
Failure to Pass the Mortgage Stress Test: In Canada, borrowers must demonstrate they can handle mortgage payments at higher interest rates. Failing this test can lead to denial.
Insufficient Down Payment: Not meeting the minimum down payment requirements can result in a declined application.

How to Rebuild Your Application

If denied, consider the following steps to strengthen your next application:

Improve Your Credit Score: Pay bills on time, reduce outstanding debts, and avoid taking on new credit. Regularly check your credit report for errors.
Increase Your Down Payment: Saving more can reduce the loan amount needed and show lenders your commitment.
Reduce Existing Debts: Paying down loans and credit cards can improve your debt-to-income ratio, making you a more attractive borrower.
Ensure Stable Employment: Lenders prefer at least two years of consistent employment in the same field. Avoid changing jobs during the mortgage application process.
Consult a Mortgage Broker: They can provide guidance tailored to your situation and connect you with lenders suited to your profile.

Co-Signers and Alternative Mortgage Options

If challenges persist, explore these alternatives:

Co-Signer: A trusted individual with strong credit and income can co-sign your mortgage, sharing responsibility for repayment. This can bolster your application but requires mutual trust and understanding of the obligations involved.
Alternative Lenders: Non-traditional lenders, such as credit unions or private lenders, might have more flexible criteria, though they may charge higher interest rates.
Guarantor: Similar to a co-signer, a guarantor agrees to cover payments if you default but doesn't have ownership rights to the property.
Joint Mortgage: Partnering with someone else to apply for a mortgage can combine incomes and improve eligibility.
Government Programs: Investigate federal or provincial programs designed to assist first-time homebuyers or those with limited income.

Remember, a mortgage denial isn't the end of your homeownership journey. By addressing the underlying issues and exploring alternative solutions, you can enhance your chances of approval in the future.

Using Pre-Approval to Guide Your Home Search

Securing a mortgage pre-approval is a pivotal step in the home-buying process. It not only clarifies your budget but also positions you as a serious buyer in the eyes of sellers. Here's how to leverage your pre-approval effectively during your home search.

Filter Homes Within Your Price Range

Your pre-approval letter specifies the maximum loan amount a lender is willing to offer, providing a clear ceiling for your home search. To ensure affordability, it's advisable to target properties priced below this maximum, accounting for additional costs like property taxes, insurance, and maintenance.

Modern real estate platforms, such as Zillow, offer tools to filter listings based on estimated monthly payments rather than just listing prices. This feature considers principal, interest, taxes, and insurance, providing a more comprehensive view of affordability.

Understand Down Payment Requirements

In Canada, the minimum down payment varies based on the home's purchase price:

Up to $500,000: 5% of the purchase price.
$500,001 to $999,999: 5% of the first $500,000 and 10% of the remaining amount.
$1 million or more: 20% of the purchase price.

For example, purchasing a home priced at $700,000 would require a minimum down payment of $45,000—$25,000 (5% of $500,000) plus $20,000 (10% of $200,000).

It's important to note that down payments below 20% necessitate mortgage default insurance, which protects the lender in case of default. This insurance adds to your monthly costs, so factor it into your budget accordingly.

By understanding and utilizing your pre-approval details, you can streamline your home search, focus on properties within your budget, and move forward with confidence in your purchasing power.

Mistakes to Avoid After Pre-Approval

Securing a mortgage pre-approval is a significant milestone in the home-buying process. However, certain actions can jeopardize your approval status before closing. Being aware of these pitfalls can help ensure a smooth path to homeownership.

Don’t Rack Up New Debt

Avoid making large purchases or opening new lines of credit after receiving pre-approval. Acquiring new debt can alter your debt-to-income ratio and credit score, potentially affecting your loan eligibility. For example, financing a new car or buying expensive furniture on credit can increase your monthly obligations, making you appear riskier to lenders. It's best to postpone significant purchases until after your mortgage has closed.

Avoid Career Changes or Credit Pulls

Stability is key during the mortgage process. Changing jobs, especially to a different industry or a role with variable income, can raise concerns for lenders about your ability to repay the loan. Similarly, applying for new credit cards or loans can lead to hard inquiries on your credit report, potentially lowering your credit score. Lenders often re-verify employment and credit status before closing, so maintaining consistency is crucial.

Stay Liquid and Keep Saving for Closing Costs

It's essential to maintain your savings and avoid large, unexplained deposits or withdrawals. Lenders scrutinize your financial accounts to ensure you have sufficient funds for the down payment and closing costs. Making significant cash deposits without proper documentation can delay the approval process. Similarly, depleting your savings for non-essential expenses can signal financial instability. Aim to keep your financial situation as consistent as it was at the time of pre-approval.

By avoiding these common mistakes, you can preserve your mortgage pre-approval status and move confidently toward closing on your new home.

How Long Does Pre-Approval Take in Burnaby?

Securing a mortgage pre-approval is a crucial step in the home-buying process. In Burnaby, the timeline for obtaining a pre-approval can vary based on several factors.

Typical Processing Times

The duration to receive a mortgage pre-approval in Burnaby generally falls within the following ranges:

Immediate to 48 Hours: Some lenders, especially those offering online applications, can provide pre-approvals within minutes to two days, provided all necessary documentation is submitted promptly.
3 to 5 Business Days: Traditional banks and credit unions may take a few days to process pre-approvals, especially during peak periods or if additional information is required.
Up to 10 Business Days: In cases involving complex financial situations or during high-demand periods, the process might extend up to two weeks.

It's advisable to initiate the pre-approval process well in advance of your intended home search to accommodate any potential delays.

What Can Speed It Up (or Slow It Down)

Several factors can influence the speed of your mortgage pre-approval:

Factors That Can Expedite the Process:

Complete Documentation: Providing all required documents—such as proof of income, employment verification, and credit history—at the outset can significantly reduce processing time.
Strong Credit Profile: Applicants with high credit scores and low debt-to-income ratios often experience quicker approvals.
Utilizing Mortgage Brokers: Brokers can streamline the process by matching you with suitable lenders and managing paperwork efficiently.

Factors That Can Delay the Process:

Incomplete or Inaccurate Information: Omissions or errors in your application can lead to back-and-forth communications, prolonging the timeline.
Complex Financial Situations: Self-employed individuals or those with multiple income sources may require additional verification, extending the approval period.
High Application Volumes: During peak real estate seasons, lenders may experience backlogs, resulting in longer processing times.

To ensure a smooth and timely pre-approval process, it's essential to be prepared, responsive, and proactive in your communications with lenders or brokers.

Renewing or Updating Your Pre-Approval

Mortgage pre-approvals in Canada typically remain valid for 60 to 120 days, depending on the lender. If you haven't purchased a home within this period or if your financial situation changes, it's essential to renew or update your pre-approval to ensure it reflects your current circumstances.

When to Request a New Letter

Consider requesting a new pre-approval letter in the following scenarios:

Pre-Approval Expiration: If your pre-approval has expired (generally after 60 to 120 days), you'll need to renew it to continue your home search with accurate financial parameters.
Interest Rate Fluctuations: Significant changes in interest rates can affect your borrowing capacity. Renewing your pre-approval can help lock in a more favorable rate or adjust your expectations accordingly.
Extended Home Search: If your home search extends beyond your pre-approval's validity, updating it ensures that your financial information remains current and credible to sellers.

Life or Financial Changes That Affect Eligibility

Certain changes in your personal or financial life can impact your mortgage eligibility:

Employment Changes: Switching jobs, especially to a different industry or a role with variable income, can affect your pre-approval status. Lenders typically prefer a stable employment history of at least two years in the same field.
Income Variations: A decrease in income or transitioning to part-time, contract, or self-employment can alter your debt-to-income ratio, potentially reducing your borrowing capacity.
New Debts: Taking on additional debts, such as car loans or new credit cards, can increase your debt load, affecting your mortgage affordability.
Credit Score Changes: Late payments, increased credit utilization, or new credit inquiries can lower your credit score, impacting your mortgage terms or eligibility.
Significant Financial Transactions: Large deposits or withdrawals in your bank accounts may require explanation and documentation, as lenders assess your financial stability.

In any of these situations, it's advisable to consult with your lender or mortgage broker to reassess your financial standing and update your pre-approval accordingly.

Next Steps After You're Pre-Approved

Securing a mortgage pre-approval is a significant milestone in your home-buying journey. With this in hand, you're well-positioned to navigate the Burnaby real estate market confidently. Here's how to proceed:

Choose a Realtor in Burnaby

Partnering with a knowledgeable local realtor can make a substantial difference in your home search. Consider agents with strong track records and positive client feedback. For instance, Ben D'Ovidio is a top-ranked Burnaby realtor, known for his exceptional customer service and deep roots in the community . Similarly, Brandon Gee-Moore has represented close to 400 sales throughout Burnaby and the Lower Mainland, earning praise for his professionalism and responsiveness .

Tour Homes and Make Informed Offers

With your realtor's guidance, begin touring properties that fit your budget and preferences. Your pre-approval letter demonstrates to sellers that you're a serious buyer, which can be advantageous in competitive situations. When you find a suitable property, your realtor will assist in crafting a compelling offer, considering factors like market conditions, comparable sales, and any contingencies.

What Happens During Final Mortgage Approval

Once your offer is accepted, your mortgage application moves to the final approval stage. Here's what to expect:

Underwriting: The lender's underwriter reviews your financial documents and the property's details to assess risk and ensure all criteria are met.
Appraisal: An independent appraisal confirms the property's market value, ensuring it aligns with the loan amount.
Title Search: A legal review ensures the property has a clear title, free from liens or disputes.
Final Approval: If all checks out, the lender issues a final mortgage commitment.
Closing: You'll sign the mortgage agreement and other legal documents. Your lawyer will handle the transfer of funds and registration of the property in your name.

Throughout this process, maintain open communication with your lender and promptly provide any requested information to avoid delays.

Conclusion

Final Thoughts on Getting Mortgage-Ready in Burnaby

Navigating Burnaby's dynamic real estate market begins with a solid mortgage pre-approval. This crucial step not only clarifies your budget but also positions you as a serious buyer, giving you a competitive edge. By understanding the pre-approval process, maintaining financial stability, and collaborating with local professionals, you're well-equipped to embark on your home-buying journey with confidence.

Quick Checklist Before You Start House Hunting

Ensure you're fully prepared by reviewing this essential pre-approval readiness checklist:

Valid Government-Issued Photo ID
Proof of Employment and Income (e.g., recent pay stubs, T4 slips, employment letter)
Recent Bank Statements (to verify down payment and closing cost funds)
List of Assets and Liabilities (e.g., investments, loans, credit card debts)
Consent for Credit Check
Social Insurance Number (optional but helpful)
Proof of Address (e.g., utility bill, lease agreement)
Information on Co-Borrowers or Co-Signers (if applicable)
Details of Existing Property Ownership (if any)

FAQs

Does pre-approval guarantee I’ll get the mortgage?

No, a pre-approval indicates that a lender has assessed your financial situation and is willing to lend you a certain amount, subject to conditions. Final mortgage approval depends on factors like property appraisal, title search, and any changes in your financial status.

Will applying for multiple pre-approvals hurt my credit?

Applying for multiple pre-approvals within a short period (typically 14–45 days) is treated as a single inquiry by credit bureaus, minimizing the impact on your credit score. It's advisable to shop around within this window to compare offers.

Can I still make an offer if I’m not pre-approved?

While it's possible, having a pre-approval strengthens your offer and demonstrates to sellers that you're a serious and qualified buyer. In competitive markets like Burnaby, a pre-approval can be a deciding factor.

How accurate is the estimate I get during pre-approval?

A pre-approval provides a close estimate based on your current financial information. However, it's not a guarantee. Changes in your financial situation or issues with the property can affect the final loan amount.

Is it better to use a local Burnaby lender for faster service?

Local lenders or credit unions may offer more personalized service and quicker turnaround times due to their familiarity with the area. However, it's essential to compare rates and terms to ensure you're getting the best deal.