Pre-approval
Getting pre-approved for a big-bank mortgage
Short answer: A big-bank pre-approval estimates what you can borrow and can hold a rate for a while (RBC and National Bank say up to 120 days). The bank checks your income, debts, credit and down payment, and stress-tests you at your rate plus 2 points or 5.25%. Run our stress test first so there are no surprises.
What a pre-approval is, what the bank will check, and how to prepare, with a stress-test check you can run first.
What the bank checks
- Income and employment: pay stubs, a letter of employment, or tax documents if self-employed.
- Debts and credit: your credit report and payments on cards, loans and lines of credit.
- Down payment: where it comes from and that it has been in your account (or a gift letter).
- The stress test: your GDS and TDS at the greater of your rate + 2% or 5.25%. Check yours in the stress test calculator.
Before you apply
- Work out your minimum down payment and whether you need insurance: insured mortgage rules.
- Run the stress test and the payment calculator.
- Ask at least two lenders, for example your bank and a broker, how long they hold the pre-approved rate.
- Compare the fine print you will live with: prepayment, penalties and portability.
If you switch lenders after signing your mortgage contract, you may have to pay a prepayment penalty. Choose the lender before you sign, not after.
Frequently asked questions
Is a pre-approval a guarantee?
No. FCAC describes a pre-approval as an estimate of how much you could borrow, often with a rate held for a period. Final approval depends on the property, an appraisal and confirming your documents.
Does a pre-approval affect my credit score?
Lenders check your credit report when you apply. Ask the lender what kind of check it does.
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.
Worked example: the stress test at a big bank’s published rate
$520,000 over 25 years at RBC’s 5-year special, 5.14% (November 2, 2026), on $140,000 household income with $4,200 property tax, $120 a month heating and $450 a month of other debt:
| Value | |
|---|---|
| Payment at your rate | $3,065.92 |
| Qualifying rate (greater of 5.14% + 2 or 5.25%) | 7.14% |
| Payment you must qualify at | $3,687.22 |
| GDS / TDS at that payment | 35.6% / 39.5% |
| Largest mortgage at 39% / 44% | $575,393 |
Computed by this site’s engine from each bank’s published rates (November 2, 2026). An example, not a quote.
