"Navigating the Canadian mortgage landscape can be overwhelming, but pre-approval puts you in control of your home buying journey. Our team at Clover Mortgage is committed to securing you the best rates while making the process simple and stress-free."
— Steven Tulman, President and Principal Broker at Clover Mortgage
A mortgage pre-approval is a lender's indication of how much they're willing to lend you and at what interest rate. Think of it as your financial passport to house hunting – it shows sellers and real estate agents that you're a serious buyer with verified borrowing power.
When you get pre-approved, lenders examine your:
Many house hunters confuse these terms, but there's a crucial difference:
| Pre-Qualification | Pre-Approval |
|---|---|
| Quick estimate based on self-reported information | Thorough review of documented financial information |
| No credit check required | Full credit report analysis |
| Informal assessment | Written commitment from lender |
| Good for initial planning | Required for serious house hunting |
At Clover Mortgage, we've streamlined the pre-approval process to make it straightforward and stress-free. Here's how we help you secure your pre-approval:
Connect with our mortgage experts either online or in person. We'll discuss your:
We'll help you gather all necessary documentation:
Our team will:
Once approved, you'll receive:
Understanding how much you can borrow is crucial for your home buying journey. Our comprehensive calculator considers all the factors that lenders evaluate.
Your household income directly impacts your borrowing power. We consider:
Your down payment affects both your maximum mortgage amount and required mortgage insurance:
| Down Payment | Impact on Mortgage |
|---|---|
| 5-9.99% | Requires mortgage insurance, higher monthly payments |
| 0-19.99% | Lower insurance premiums |
| 20%+ | No mortgage insurance required |
Your credit score influences your:
We help you understand your potential monthly payments based on:
Pro Tip: Always plan for additional costs beyond your mortgage payment:
Working with mortgage lenders through a trusted mortgage broker like Clover Mortgage ensures you understand exactly what documentation you need for your mortgage loan application. Our lending guidelines are designed to make the mortgage pre-qualification process smooth and efficient.
To verify your employment status and income, you'll need to provide:
We'll need clear proof of your down payment funds, including:
Provide statements for all your financial accounts:
We'll obtain your credit report with your permission, which includes:
Self-employed individuals need additional documentation:
Understanding your budget and how rising interest rates affect your home buying process is crucial for making informed decisions about your mortgage options.
The minimum required down payment varies based on your home price:
| Purchase Price | Required Down Payment |
|---|---|
| Under $500,000 | 5% |
| $500,000 - $999,999 | 5% on first $500,000 + 10% on remainder |
| $1 million+ | 20% |
Your mortgage payment includes several components that affect your overall budget. We'll help you understand how your loan amount, mortgage rate, and other factors influence your monthly obligations. This includes considering both fixed and variable rate options to find the best fit for your financial situation.
| Payment Component | Description |
|---|---|
| Principal | The amount that goes toward your loan balance |
| Interest | The cost of borrowing, based on current rates |
| Property Tax | Often included in monthly payments |
| Home Insurance | Required by most lenders |
| Mortgage Insurance | Required for down payments under 20% |
Current mortgage rates significantly impact how much money you can borrow. Our mortgage broker team will explain:
Beyond your down payment, your home purchase involves additional closing costs, including:
Our mortgage broker team evaluates your income, other debts, credit score, and down payment to determine your maximum amount. We consider current lending guidelines and interest rates to establish a comfortable budget that works for your financial situation.
While many lenders prefer a credit score above 680 for the best mortgage rates, we work with multiple lending partners. Good credit opens more mortgage options, but we can often help clients with various credit profiles secure full approval.
Adding a co-borrower can strengthen your mortgage application by combining incomes and assets. This often helps you qualify for a higher loan amount and better mortgage rates, which is especially useful in markets with rising home prices.
After mortgage pre-qualification, you can confidently begin your home buying process within your approved budget. Your mortgage broker will guide you through finalising your full approval once you've found your desired property.
Focus on managing other debts, maintaining good credit, and saving more money for your down payment. Our mortgage broker team can provide personalised advice to improve your chances of securing the best mortgage products and rates.
