The Do’s and Don’ts of Mortgage Pre‑Approval in Ontario
Buying a home in Ontario? Getting pre‑approved for a mortgage is one of the first—and most important—steps in your home buying journey.
But here’s the thing: mortgage pre‑approval is not a guarantee. It’s conditional on your income, credit, debts, and down payment staying consistent until closing. Even small financial changes can put your mortgage approval in Ontario at risk.
So, how do you keep your pre‑approval solid? Here are the essential mortgage pre‑approval do’s and don’ts for Ontario home buyers.
Mortgage Pre‑Approval Do’s
Keep your job & income stable
Lenders qualify you based on your current employment. Changing jobs—or switching industries—can affect your approval.
Pay all bills & debts on time
Missed or late payments can drop your credit score and jeopardize your approval.
Keep credit card balances low
Try to keep balances under 30% of your available credit. High utilization affects your debt ratios.
Save and document your down payment
Keep a clear 90‑day history of your funds. Lenders must follow Canada’s anti‑money laundering (AML) rules and will verify where your down payment comes from.
Talk to your mortgage broker before big financial moves
Thinking of buying a car, financing furniture, or co‑signing a loan? Always check first—it could impact your mortgage approval.
Respond quickly to document requests
Fast communication keeps your mortgage process on track and avoids delays.
Mortgage Pre‑Approval Don’ts
Don’t change jobs without telling your broker
Especially if it’s a new industry, contract work, or self‑employment.
Don’t take on new debt
New loans or credit cards change your debt ratios and could lower how much you qualify for.
Don’t make big purchases before closing
Wait until after your mortgage funds to buy that car or furniture.
Don’t move money unnecessarily
Multiple transfers between accounts create extra documentation work for you and your lender.
Don’t co‑sign for someone else
You’ll be legally responsible for their debt, which affects your qualification.
Don’t assume pre‑approval = final approval
It’s still conditional—final approval happens after the lender reviews your full file and the property.
Why Protecting Your Mortgage Pre‑Approval Matters
Your Ontario mortgage pre‑approval is based on your current financial situation. If you add debt, change jobs, or miss payments, the lender may:
Reduce your approved mortgage amount
Ask for extra documents
Or, in some cases, deny your mortgage at final approval
By following these simple home buying tips for Ontario buyers, you’ll avoid unnecessary stress and keep your mortgage approval safe.
