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Why Get Pre-Approved for a Mortgage with RBC?
Speed and Simplicity
Take the stress out of homebuying. Get pre-approved — it's fast, simple, and gives you clarity before you start shopping.
Lock In Your Rate
Your rate is guaranteed for up to 120 days, so you can take your time to shop for the right home.
Know Your Budget
Shop with clarity and confidence knowing how much home you can afford.
Speed and Simplicity
Take the stress out of homebuying. Get pre-approved — it's fast, simple, and gives you clarity before you start shopping.
Lock In Your Rate
Your rate is guaranteed for up to 120 days, so you can take your time to shop for the right home.
Know Your Budget
Shop with clarity and confidence knowing how much home you can afford.
Overview
- A mortgage pre-approval shows you how much you can realistically afford, and locks in your rate for up to 120 days.
- A pre-approval is more detailed and thorough than a pre-qualification.
- Getting pre-approved early helps you shop with clarity and move quickly when you find the right home.
What is a Mortgage Pre-Approval?
A mortgage pre-approval is a conditional commitment from a lender to loan you up to a certain amount of money at a specific interest rate before you buy a home.
It gives you clarity on:
- How much you may be able to borrow
- What your estimated monthly payments could look like
- The mortgage rate you may qualify for (locked in for a set period with a locked in rate valid for 120 days guaranteed)
*A pre-approval is not a guaranteed loan, nor a commitment of financing.
How to Get Pre-Approved for a Mortgage Online
Getting pre-approved is more straightforward than many people expect. Here's how the process typically works.
About you
- Current address
- Contact information
Income details
- Your current gross annual salary or income amount
Down payment information
- The amount you plan to put down
Tip: Determine your down payment early can help pave the way for a smooth pre-approval process.
To complete your pre-approval, RBC will need your permission to check your credit score.
Online pre-approval: Through the RBC online pre-approval application, we'll verify your financial and other information first and pull your credit report later, at the time of the full mortgage application.
A pre-approval credit check is typically a hard inquiry, which may have a temporary impact on your credit score. When you complete your pre-approval online, it's a soft credit check, which has no effect on your score.
Once approved, you'll receive a pre-approval letter outlining:
- Your maximum approved mortgage amount
- Your interest rate (and how long it's locked in)
- Key conditions that must be met for final approval
Pre-Approval vs. Pre-Qualification: What's the Difference?
Here's a rundown of both processes:
| Pre-Approval | Pre-Qualification | |
|---|---|---|
| Purpose | Provides a clear understanding of your borrowing power and budget | Provides a rough estimate of what you can afford |
| Level of Review | In-depth assessment | Basic evaluation |
| Credit Check | A soft credit check with no impact to your credit score | A soft credit check with no impact to your credit score |
| Commitment | No obligation to the lender | No obligation to the lender |
| Validity Period | Up to 120 days | Not applicable | Key Benefits |
|
Gives you a starting point for your home search |
After Getting Pre-Approved Online: What Happens Next?
A mortgage advisor can help you make sense of your results from the application process, and, if you're new to homeownership, help set your expectations about owning a home.
They can help in two key scenarios:
-
If your pre-approved amount meets your expectations:
An advisor can help you map out your financial strategy, understand the available mortgage options (fixed vs. variable rate, interest terms, payment options, amortization, etc.) and plan for final approval.
-
If your pre-approval amount is lower than you expected:
This can be disappointing, but it's a valuable insight. An advisor can walk you through your pre-approval amount, help you understand the factors that influenced it, and explore your options—whether that's developing strategies to improve your borrowing potential over time or completing a full mortgage pre-approval for your home search.
If you complete your pre-approval application with an advisor, they will verify your financial and other information upfront, at the time of your pre-approval application – including pulling your credit report and verifying your supporting documents. Your advisor when preparing a full mortgage application will also confirm details such as:
- Value of properties, automobiles, investments and savings
- Most recent statements for mortgages, loans and lines of credit
- Ongoing housing costs like property taxes, condo fees and heating
Tip: Understand the full costs of buying a home beyond the purchase price. Consider closing costs, property taxes, utilities and ongoing expenses so your budget feels comfortable.
- Current employment details
- Previous employment information, if you've been at your current role for less than three years
- Government-issued ID with your current address
- Social Insurance Number (optional)
- Bank statements showing how you'll fund your down payment and closing costs
- Recent pay stub
- Employment letter
- Bank statement showing direct deposit
- Investment statements
- If self-employed, the last two years' Notice of Assessments from your income tax return
Tip: If you think that getting some income verification documents (i.e. your T4) or account statements might take a while, give yourself some time to make those requests.
Mortgage Pre-Approval FAQs
A mortgage pre-approval typically lasts between 90 and 120 days, though some lenders may offer shorter or longer periods. This timeframe is known as a “rate hold period,” during which the lender guarantees a specific interest rate, protecting you from potential market increases while you search for a home. At RBC, your pre-approved rate is locked in for 120 days, giving you ample time to find the right property without worrying about rate fluctuations.
If your pre-approval expires before you find a home, it simply means you’ll need to reapply for your pre-approval. This process may involve updating your financial information and undergoing a new credit check. Keep in mind that significant changes to your financial situation (e.g., a new job, increased debt or shifts in income) could affect your approval, even within the initial period. Staying in touch with your mortgage advisor ensures a smoother transition if you need to extend or refresh your pre-approval.
Yes, your credit score plays an important role in the mortgage pre-approval process. It influences three key aspects:
- Approval decision: Lenders use your credit score to assess your financial reliability.
- Interest rates: A higher credit score secures lower interest rates, potentially saving you tens of thousands of dollars over the mortgage term.
- Borrowing capacity: Lenders evaluate your debt-to-income ratios. A stronger credit score may allow for more flexibility in these ratios, increasing your pre-approved loan amount.
The ideal time to get a mortgage pre-approval is 90 to 120 days before you start seriously searching for a home. This aligns with the typical rate hold period (e.g., RBC’s 120-day lock), ensuring your interest rate remains secure while you continue your search. Applying too early may require reapplying later, requiring another credit check.
Why this timing matters:
- Rate protection: Locks in your interest rate during a potentially volatile market.
- Buyer credibility: Sellers often require a pre-approval letter, especially in competitive markets like Toronto or Vancouver.
- Budget clarity: Confirms your price range and down payment readiness.
Consider gathering your documents (pay stubs, tax returns, asset proofs) beforehand to streamline the process when working with an advisor.
Mortgage pre-approval could potentially affect your credit score, depending on the type of credit check used.
-
Soft vs. Hard credit checks:
- Soft inquiry: If you use RBC’s online pre-approval tool, it performs only a soft credit check, which does not impact your credit score.
- Hard inquiry: Most formal pre-approvals involve a hard credit pull, which may lower your score by a few points temporarily. This inquiry only affects your score for 12 months.
- Rate shopping protection: Credit bureaus group multiple mortgage-related hard inquiries within 14 to 45 days into a single inquiry, minimizing the impact when comparing offers.
Key tips to protect your score:
- Avoid applying for other credit (e.g., cards, loans) during this period.
- Only pursue a formal pre-approval when you’re ready to buy, as approvals expire after 90 to 120 days.
Yes, newcomers to Canada can qualify for mortgage pre-approval, even with limited Canadian credit or employment history. RBC offers mortgage options to help newcomers buy their first home, recognizing the challenges of building your financial history in a new country.
Key eligibility criteria for newcomers:
- Immigration status: You must have immigrated to Canada within five years and have permanent residence status.
-
Employment and down payment:
- You would need least two years of continuous employment (Canadian or international) and at least 5 per cent down payment. Please note that at 5 percent you will require default insurance.
- If you have a down payment of 20% or more, you will qualify for a conventional mortgage and will not require default insurance
- You may still qualify even with little to no Canadian credit or employment history, provided you have a down payment of at least 35 per cent of the purchase price and other eligibility requirements are met.
-
If no Canadian credit exists:
- RBC may accept alternative proof, such as 12 months of timely rent or utility payments, an international credit report or a letter of reference from your bank in your home country.
Speak to an RBC mortgage advisor to explore options aligned with your specific circumstances.
Yes, you can seek pre-approvals from multiple lenders. Being pre-approved by another lender doesn’t prevent you from seeking pre-approval with RBC, in fact, shopping around allows you to evaluate interest rates, terms and fees to secure the best deal. To minimize credit score impact, ensure multiple hard inquiries are grouped within a 14 to 45-day window so that they’ll count as one inquiry. For a quick, no-obligation check, try RBC’s online pre-approval application, which uses a soft credit inquiry and doesn’t affect your score.
Yes, a mortgage pre-approval can be denied if your financial profile doesn’t meet your lender’s criteria. Common reasons include:
- Low credit score
- High debt-to-income ratio
- Unstable employment or insufficient income history
- Insufficient down payment or unverified funds
While a rejection isn’t a permanent mark on your credit report, it signals that your current financial situation may not support homeownership. Think of it as an opportunity to improve. Address the underlying issues (e.g., boosting your credit score, reducing debt or saving more) before reapplying and know how much mortgage you can afford. For personalized advice, speak to an RBC mortgage advisor to help you strengthen your application.
Once you’ve found a property and your offer is accepted, the final mortgage approval process typically takes one to three weeks, though the entire closing process may span 30 to 60 days. Here’s a breakdown of the key timelines:
- Full application submission: Up to two business days. Submit the signed purchase agreement and property details to your lender. They’ll refresh your financial documents and credit check
- Underwriting review: Up to three business days. The lender re-verifies your income, credit and debts to ensure no changes occurred since pre-approval
- Property appraisal: Between three and 10 business days. The lender orders an appraisal to confirm the home’s value aligns with the loan amount.
- Conditional approval: Between three and 10 business days. The lender issues a commitment letter with conditions (e.g., final employment verification, insurance proof).
- Final unconditional approval: Up to three business days. Once all conditions are met and the appraisal is approved, you receive final clearance to close.
Factors affecting the approval’s speed:
- Property complexity: Unique or rural properties may require longer appraisals.
- Your responsiveness: Delays in submitting updated documents can stall the process.
- Market volume: Peak seasons may add backlogs.