Pre-approval vs pre-qualification: what's the difference?
A pre-qualification is a quick estimate from what you tell a lender, usually without documents or a rate hold. A pre-approval checks your credit and documents and usually holds a rate for 60 to 130 days (FCAC). Neither guarantees the mortgage, and lenders use the two words differently.
Figures as of 2026-11-03.
How do pre-approval and pre-qualification compare?
| Pre-qualification | Pre-approval | |
|---|---|---|
| Based on | What you tell the lender | Credit report and documents |
| Rate hold | Usually none | 60–130 days (FCAC); 120 at RBC, TD, CIBC; 130 at BMO |
| Credit check | Often none | Soft or hard, by lender |
| Time to get | Minutes | Minutes online to a few days |
| Use | Early budgeting | Shopping and making offers |
| Guarantee? | No | No (FCAC) |
Do lenders mean the same thing by these words?
The FCAC says pre-approval may also be called pre-qualification or pre-authorization, and that lenders have different definitions and criteria for each step. TD separates them cleanly: a pre-qualification has no rate hold, a pre-approval holds a rate for 120 days. Other lenders call a document-light online check a "pre-approval". The label matters less than what was checked.
What does a lender verify for a pre-approval?
A full pre-approval usually covers four things. Your credit report, from Equifax or TransUnion. Your income, with an employment letter and pay stubs, or two years of Notices of Assessment if you're self-employed or paid by commission. Your down payment, with about 90 days of statements so the lender can trace the money. And your debts, which go into the total debt service (TDS) ratio.
Then the lender runs the stress test. At today's average rate of 4.12% you qualify at 6.12%, and CMHC's limits for an insured mortgage are 39% of gross income for housing costs and 44% for all debts. Uninsured lenders (20% or more down) set their own limits, often similar.
What a pre-approval doesn't verify is the property. That comes after your offer, often with an appraisal, and it's one reason a pre-approval can still change.
Which one do you need, and when?
- Six months or more out: run our readiness check and the maximum price tool. No lender, no credit check.
- One to four months before buying: get a pre-approval with a rate hold that covers your likely closing date. Build your document list first so you can send everything at once.
- Offer accepted: send the offer to the lender the same day. The pre-approval becomes a final approval only after it reviews the property.
What do nine Canadian lenders offer?
Hold length, credit-check type and online availability differ more than most buyers expect. From each lender's own page:
| Lender | Rate hold | Credit check | Online | Conditions noted |
|---|---|---|---|---|
| RBC Royal Bank | Up to 120 days | Online pre-approval is a soft check; the full credit pull comes with the mortgage application | Yes | The rate guarantee expires if the mortgage isn't funded within the period |
| TD | 120 days | No impact on your credit score when you apply online | Yes | Subject to all conditions; you can ask to have the rate lowered if rates fall |
| CIBC | Up to 120 days from the certificate date | Involves a credit check, which may impact your score | Yes | Fixed rates only; provided your financial situation doesn't change |
| BMO | 130 days | Not confirmed (BMO's pre-approval page didn't load for us) | Yes (digital pre-approval, per BMO's 2020 release) | BMO extended its rate guarantee from 90 to 130 days in March 2018 (From BMO's own newsroom; its current pre-approval page timed out, so check the figure with BMO.) |
| Scotiabank | Not stated (its article says lenders typically hold 60–130 days) | May be a hard credit check, which can affect your score | Yes (eHOME) | Not a guarantee of funds; final approval follows once you choose a home |
| National Bank | Up to 120 days from receipt of the application (the same page also says 90) | Not stated | Yes | To apply online you must own one property or less in total; property in Canada outside the territories (National Bank's page gives both 120 and 90 days; ask which applies to you.) |
| nesto | 150 days, with one float-down if rates drop | Soft check at submission; hard check once you decide to proceed (nesto FAQ) | Yes (online lender and broker) | Other conditions and restrictions apply |
| Desjardins | Typically 3 to 6 months; the pre-approval is good for 6 months | Requires a credit check (Equifax or TransUnion) | Members can apply online | The rate holds only while your situation and financing stay the same; choosing a different mortgage type loses it (Countdown uses 3 months (90 days), the low end of Desjardins' range.) |
| ATB Financial | 120 days for a resale, 180 for a new build | Not stated | Not stated | Final approval depends on an appraisal, down payment check and title report (From a 2021 ATB article; check the current figure with ATB.) |
Scotiabank doesn't state its hold period on its own page, so ask. Where a lender's page and a third-party site disagree, we've used the lender's page.
Is a pre-approval a final approval?
Final approval comes after you have an accepted offer: the lender checks the property, re-verifies your file and issues a commitment with conditions. Anything that changes in between can change the answer: a new car loan, a job change, a credit score drop or a low appraisal. See what can break a pre-approval, and read your own letter with the letter reader.
A pre-qualification takes your word for it. A pre-approval checks it. If the verified income comes in lower than the number you gave (say overtime that isn't guaranteed), the amount moves.
| Stated household income | $120,000 |
|---|---|
| Verified income (overtime excluded) | $108,000 |
| Down payment / other debts | $60,000 / $400 a month |
| Rate | 4.12%Bank of Canada average for new insured 5-year+ fixed mortgages, 2026-08 |
| Pre-qualification estimate | $605,100on stated income |
| Pre-approval on verified income | $552,500$52,600 lower |
Open this example in the calculator →Computed November 2, 2026.
Key terms
- Pre-qualification
- A quick estimate of what a lender might lend, based on figures you provide, usually with no documents and no rate hold.
- Pre-approval
- A lender's conditional estimate after it checks your credit and documents, usually with a rate held for a set number of days.
- Commitment
- The lender's final approval after an accepted offer and a review of the property, with conditions you must meet before funding.
What this means for you
If you're more than six months from buying, a pre-qualification or our readiness check is all you need: it shows the size of the gap without a credit check. Within a few months of shopping, get a real pre-approval from two or three lenders, and ask each one three questions: is the credit check soft or hard, what documents did you verify, and how long is the rate held?
Treat the pre-approval amount as a ceiling built on today's file. Keep the file unchanged until closing, and don't waive a financing condition on the strength of a pre-approval alone.
Frequently asked questions
Is a pre-qualification the same as a pre-approval?
Not usually. The FCAC says lenders have different definitions and criteria for each step; TD, for example, says its pre-qualification has no rate hold while its pre-approval holds a rate for 120 days.
Does a pre-approval affect my credit score?
It depends on the lender. RBC says its online pre-approval is a soft check; TD says there's no impact online; CIBC and Scotiabank say theirs may affect your score. Ask before you apply.
Do sellers care whether I'm pre-approved?
Often. A pre-approval shows a lender has looked at your credit and documents, which makes an offer more credible than a pre-qualification.
Primary sources
- Financial Consumer Agency of Canada — Getting a mortgage pre-approval (rate lock 60 to 130 days) (effective October 15, 2025). Checked .
- TD — Mortgage pre-approval (rate held 120 days; no score impact online). Checked .
- RBC Royal Bank — Getting pre-approved (rate guaranteed up to 120 days; online is a soft check). Checked .
- CIBC — Mortgage pre-approval (up to 120 days from the certificate date, fixed rates). Checked .
- BMO — BMO extends mortgage rate guarantee period for home buyers (90 to 130 days) (effective March 6, 2018). Checked .
- Scotiabank — How do I get a mortgage pre-approval online? (Advice+ article, April 2021) (effective April 9, 2021). Checked .
- National Bank — Mortgage pre-approval (rate guaranteed up to 120 days). Checked .
- nesto — 150-day rate lock (one float-down permitted). Checked .
- Desjardins — Mortgage pre-approval (rate typically guaranteed 3 to 6 months). Checked .
- ATB Financial — 6 things you need to know about mortgage pre-qualification and pre-approval (October 2021) (effective October 22, 2021). Checked .