How to get pre-approved for a mortgage in Calgary

What is mortgage pre-approval, and what it is not

A pre-approval is a lender's conditional review of your income, debts, credit, and down payment. The FCAC explains that the process may tell you the maximum mortgage you could qualify for, estimate your payments, and lock in a rate for roughly 60 to 130 days depending on the lender. Lenders use different names and steps, and a pre-approval does not guarantee final approval.

Pre-qualification is usually a rough estimate based on information you provide, sometimes without documents or a credit check. A pre-approval goes further: the lender or broker reviews actual documents and usually checks your credit. The written pre-approval typically shows the amount, the rate and how long it is held, and the conditions still to be met, such as approval of the property and verification of income and down payment.

A rate hold protects you if rates rise while you shop. Ask whether you would automatically get a lower rate if rates fall during the hold; FCAC lists this as a question to ask, because the answer depends on the lender.

What documents you need for pre-approval in Calgary

Requirements vary by lender, but most pre-approvals start with this checklist. Having it ready makes the review faster and more reliable.

• Government-issued photo ID
• Proof of employment: a recent pay stub and an employment letter showing your position, pay, and start date
• Recent T4 slips, and two years of Notices of Assessment if your income varies or includes bonuses or commission
• Bank or investment statements showing your down payment and closing costs, usually covering the last 90 days
• Details of your debts: car loans, student loans, credit cards, lines of credit, and support payments
• Details of your assets, such as savings, RRSPs, TFSAs, FHSAs, and other real estate
• If self-employed: two years of T1 Generals and Notices of Assessment, plus business financial statements if incorporated
• If family is helping: a signed gift letter and proof the funds are deposited

How much mortgage can you get pre-approved for?

Lenders use two debt service ratios. Gross Debt Service (GDS) compares housing costs (mortgage payment, property tax, heating, and half of any condo fees) to your gross income. Total Debt Service (TDS) adds your other debt payments. For insured mortgages, CMHC sets the limits at 39% GDS and 44% TDS.

The stress test applies on top of that. Where it applies, you must qualify at the greater of 5.25% or your contract rate plus 2%. You still pay the contract rate; the qualifying rate only limits the amount you can borrow.

Here is a hypothetical example. Rates are illustrative, not a current offer.

Actual results depend on the lender, your credit, the property, condo fees, the amortization available to you, and your down payment. Mark will run your real numbers during your consultation.

The pre-approval process with Mark Herman, step by step

The process is designed to be clear, with no surprises.

1. Contact Mark by phone, email, or the contact form to talk about your goals.
2. Send the documents Mark requests so your income, down payment, and debts can be verified.
3. Mark reviews your full financial picture, including credit, ratios, and any issues to fix first.
4. Mark compares lenders whose policies fit your situation and explains the options.
5. You receive a written pre-approval from the chosen lender, with its amount, conditions, and any rate hold.
6. You shop for a home with a realistic budget, and Mark stays available through the offer, conditions, and closing.

Why use a mortgage broker for pre-approval instead of going directly to your bank?

A bank can pre-approve you only for its own products. The FCAC notes that some mortgage products are only available through brokers and that brokers have access to many lenders, so they may offer a wider range of products. Brokers do not all work with the same lenders, so it is fair to ask which lenders a broker uses.

Brokers generally do not charge fees for standard residential mortgages; they are usually paid a commission by the lender when the mortgage funds. Some alternative or private files can involve fees, and any fee should be disclosed in writing before you commit.

A broker is not always cheaper than your bank. Sometimes your bank makes the best offer, and you should hear that honestly. What a broker adds is comparison and explanation, so you can choose on total cost, penalties, and flexibility rather than the first rate you see.

Credit checks are another reason to plan. Ask before any credit check is run and how your information will be shared, so you understand what to expect.

How to get pre-approved for a mortgage in Calgary

1. Contact Mark

   Call, email, or use the contact form to share your goals and timeline.

2. Gather documents

   Collect ID, income documents, down payment statements, and debt details.

3. Review and compare

   Mark reviews your file and compares lenders whose policies fit.

4. Receive your pre-approval

   Get a written pre-approval with its amount, conditions, and any rate hold.

5. Shop with confidence

   Look at homes within your budget and send the accepted offer for final approval.

Frequently asked questions

Does getting pre-approved affect my credit score?

A pre-approval usually involves a credit check, which can have a small, temporary effect. Credit bureaus may treat several mortgage inquiries within a short period differently from other credit, but the impact depends on the bureau's scoring model. Ask Mark before any check is run.

How long does a mortgage pre-approval last in Canada?

Rate holds vary by lender. The FCAC describes holds of roughly 60 to 130 days depending on the lender. If your search takes longer, ask about extending or reapplying.

Can I get pre-approved if I am self-employed?

Yes. Lenders usually ask for two years of T1 Generals and Notices of Assessment, plus business statements if incorporated. Some insured programs allow eligible sole proprietors to gross up income or add back eligible deductions.

What is the difference between pre-approval and pre-qualification?

Pre-qualification is usually an estimate based on what you tell the lender. Pre-approval involves reviewing documents and usually a credit check, and often includes a rate hold. Neither guarantees final approval.

Can I get pre-approved before I find a home?

Yes, and it is usually the right order. A pre-approval shows your realistic budget, flags issues early, and lets you act quickly when you find the right home.

What happens if my finances change after pre-approval?

Tell Mark right away. A new job, lower income, or new debt can change or cancel an approval. Addressing changes early avoids surprises at the final lender review.

Can I get pre-approved with bad credit in Calgary?

Sometimes. Some lenders consider credit challenges, usually at higher rates or with a larger down payment. Mark can explain realistic options and steps to strengthen your file. No approval is guaranteed.

How is pre-approval through a broker different from my bank?

Your bank reviews you for its own products. A broker can compare options from multiple lenders and explain the trade-offs. The best offer may still be your bank's; the point is to compare.

Official sources

• Financial Consumer Agency of Canada: Getting preapproved for a mortgage
• Financial Consumer Agency of Canada: Preparing to get a mortgage and the stress test
• CMHC: Self-employed mortgage loan insurance (income, GDS/TDS and qualifying rate rules)
• Financial Consumer Agency of Canada: Saving for a down payment