Should I get pre-approved before I start looking for a home in Vancouver?
Yes. Get pre-approved before you book a single showing. It's free, usually takes a lender 1 to 3 business days, and locks in a rate for 90 to 120 days, so you know your real budget and monthly payment before you fall for a place you can't actually finance.
What does a mortgage pre-approval actually confirm?
A pre-approval is a lender's estimate of how much you can borrow, based on your income, debts, credit score, and the down payment you tell them you have. It gives you a maximum purchase price and an interest rate held for a set window.
A pre-approval tells you what you can likely afford. It doesn't guarantee any specific deal will close: final approval only comes once you have a property, and depends on that property's appraisal, its building type, and the lender confirming what you submitted is accurate.
How long does a pre-approval rate hold last?
Most major lenders hold a pre-approved rate for 90 to 120 days, though the exact window varies by lender and by whether the rate is fixed or variable. Check the exact expiry date printed on your written pre-approval.
If you're still shopping when it expires, your mortgage broker can usually renew it, sometimes at a different rate if the market has moved. Renewing is typically a five-minute conversation with your broker.
What documents does a lender ask for?
Expect to provide:
Two pieces of government-issued photo ID
Recent pay stubs and an employment letter confirming your position and income
T4 slips, usually for the last two years
Bank or investment statements, typically the last 90 days, to show where your down payment is coming from
Statements for existing debts: credit cards, car loans, lines of credit, student loans
If you're self-employed, add two years of T1 returns and Notices of Assessment, and possibly business financial statements. None of this locks you into a specific lender. Shop it, or have your mortgage broker shop it for you.
Why does this matter more in Vancouver's market?
Two reasons, and they're different problems.
The first is budget. Metro Vancouver condo prices vary enough by neighbourhood and building age that a number you guessed at from browsing listings can be off by six figures. A pre-approval gives you a firm ceiling before you get attached to a unit priced above it.
The second is offer strength. In a multiple-offer situation, a buyer who already has a pre-approval can move straight to a short financing condition, since the lender already has most of the file. A buyer starting from zero needs longer, which is a weaker offer on a property with competing bids. A pre-approval makes that condition short enough to compete.
What is the mortgage stress test, and how does it change my number?
Federally regulated lenders in Canada have to qualify you at the higher of two rates: 5.25%, or your actual contract rate plus 2 percentage points. That's the rule as published on canada.ca, and it applies whether or not you're putting down less than 20%.
In practice, the rate on your pre-approval paperwork isn't the rate used to decide how much you can borrow. If your lender offers you 4.5%, they still have to confirm you can afford payments at 6.5%. An online calculator built around the advertised rate will overstate what you qualify for. A pre-approval from a lender catches that gap before you're looking at units you can't get financed.
How much down payment do I need to bring?
Under canada.ca's current rules, the minimum is tiered by purchase price: 5% on a home up to $500,000, 5% on the first $500,000 plus 10% on the portion between $500,000 and $1.5 million, and 20% on anything at $1.5 million or above. Below 20% down, you'll also carry a mortgage insurance premium added to your loan balance.
My read: for most first-time buyers I work with in Metro Vancouver, the pre-approval conversation and the down payment conversation happen in the same meeting with a mortgage broker, because the stress test rate and the down payment tier both move that number more than people expect walking in.
Frequently asked questions
Does getting pre-approved cost anything?
No. Pre-approval is free from virtually every lender and mortgage broker. There's no reason to skip it or delay it to save money.
Does a pre-approval guarantee I'll get my mortgage?
No. It's the lender's estimate based on your income, credit, and stated down payment. Final approval depends on the specific property, its appraisal, and the lender verifying everything you submitted.
How long is a pre-approval rate held for?
Typically 90 to 120 days, depending on the lender and whether the rate is fixed or variable. Confirm the exact expiry date on your written pre-approval.
Can I still shop around for a lender after getting pre-approved?
Yes. A pre-approval from one lender doesn't obligate you to borrow from them. Your mortgage broker can shop multiple lenders before you commit to one at the offer stage.
What's the mortgage stress test rate right now?
Federally regulated lenders must qualify you at the higher of 5.25% or your contract rate plus 2 percentage points, per canada.ca. This is separate from the actual rate on your mortgage.
Barton Lui is a REALTOR® with Real Broker in Vancouver. He works mostly with first-time buyers across Metro Vancouver and speaks English, Cantonese and Mandarin.
Ready to start looking? Book a consultation or read how long the full condo-buying process takes and what a buyer's agent actually does.
Reach him at 604-715-5568 or barton@bartonrealtor.com.
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