So the Bank said Yes!

Well... Kind of

What does Pre-approved mean?

  • A pre-approval is a preliminary evaluation of a potential borrower (You) by a lender (Bank) to determine whether they can be given a pre-qualification offer. Pre-approvals are generated through relationships with credit bureaus which facilitate pre-approval analysis through soft inquiries. Pre-approval marketing can provide a potential borrower with an estimated interest rate offer and a maximum principal amount. In summary it gives you a spending amount and a starting point.

Do I still need a "finance condition"?

  • In short...Yes. A Pre-approval is only a quick snapshot of your mortgage qualifications and although the lender is confident enough in allowing you to shop and put forward offers, it will still need a final approval on the specific property. This only takes place once your offer is accepted. 

Does every property need an appraisal?

  • Depending on the amount of your down payment, either CMHC (mortgage insurer) or the lender itself will want to confirm that the property you are in fact purchasing has a value that supports the amount you are offering. This can be done electronically or in person with a certified home appraiser.