Owning a home means putting down roots and building a future, a place where memories are made and dreams are realized.

 A mortgage pre-approval in Ontario provides you with a clear understanding of your financial standing when entering the homebuying process. Essentially, it signifies that you are qualified for a mortgage loan up to a specified maximum amount, accompanied by an estimated monthly payment based on current interest rates, which are typically locked in for a period ranging from 60 to 130 days, depending on the lender.

However, it's crucial to understand that a pre-approval does not guarantee that you will receive a mortgage for the maximum amount stated. The final loan amount is contingent upon factors such as the purchase price of the property and the size of your down payment.

It's wise to set aside funds not only for your down payment but also for closing costs, moving expenses, and potential maintenance costs associated with your new home.

The pre-approval process usually begins with a pre-qualification, providing a preliminary estimate of what you might be able to borrow. This is followed by the more detailed pre-approval, which offers a more precise figure based on a thorough review of your financial documents.

 Pre-approvals are frequently mistaken for pre-qualifications, but they serve distinct purposes in the mortgage process. Pre-qualifications provide a preliminary estimate based on basic financial information you provide, offering a rough idea of what you might afford. 

On the other hand, pre-approvals involve a more thorough assessment of your financial situation. Lenders closely examine your income, credit history, and other financial details to provide a more accurate maximum loan amount and estimated monthly payments. This detailed scrutiny ensures that when you receive a pre-approval, you have a clearer picture of your purchasing power, allowing you to shop for homes confidently within your budget. 

Choosing a pre-approval over a pre-qualification empowers you with stronger negotiating power and positions you as a serious buyer in the competitive real estate market. 

Having a pre-approval not only clarifies your budget but also empowers your realtor to find homes within your price range more effectively. In a competitive housing market, sellers often prioritize buyers with pre-approvals, as it demonstrates your seriousness and ability to secure financing promptly.

You have two primary options for obtaining a pre-approval: through a mortgage broker or directly from a lender. While lenders provide financing directly to borrowers, mortgage brokers act as intermediaries, comparing various loan options from different lenders to find the best fit for your needs.

When seeking a pre-approval, it's wise to ask pertinent questions to your broker or lender, such as:

• How long is the interest rate guaranteed?
• Can the pre-approval period be extended if needed?
• What happens to my pre-approved rate if interest rates fluctuate?

There are many common lenders including banks (such as TD, Scotiabank, CIBC), credit unions, and mortgage monoline lenders. 

Breezeful offers a convenient service where we compare offerings from up to 30 different lenders on your behalf, ensuring you secure the most advantageous mortgage terms tailored to your financial situation.

Let's simplify your mortgage journey—get started with a pre-approval today and pave the way to homeownership with confidence.