If you've ever talked to me about buying a home, you've heard me say it: "Let's get you pre-approved first." Some buyers are surprised — they expected me to start with house hunting. But there's a reason I always start here, and today I'll explain it in plain words.
What is a pre-approval, exactly?
A pre-approval is a letter from a lender (a bank or a mortgage broker) that says, in writing: based on your income, your debts, your credit history and your down payment, here's how much you could borrow — and here's the interest rate we'll hold for you, usually for 90 to 120 days. Think of it like this: before going shopping, you check how much is in your wallet. A pre-approval is your wallet check, done by the people lending the money.
What does it tell you?
Three things: your price range (so you only fall in love with homes you can actually buy), your locked-in rate for the next few months, and a clear picture of your monthly payment. It turns "maybe I can afford it" into "here are my real numbers."
Is it a guarantee?
No — and this part matters. A pre-approval is not a final promise. Before closing, the lender checks everything again. So protect it: don't take on new debt (no new car loans, no big credit-card spending), don't change jobs if you can avoid it, and don't move your down payment money around. Big changes can change the lender's answer.
Why do I ask for it before we visit a single home?
Three reasons. First, it protects your heart — nothing hurts more than finding "the one" and learning you can't afford it. Second, sellers take your offer seriously when they see a pre-approval, especially in the parts of London where homes still sell quickly. Third, it respects everyone's time: yours, mine, and the seller's. House hunting with real numbers is calmer, faster, and honestly more fun.
How do you get one?
Talk to a bank or a mortgage broker — many buyers compare two or three, which is smart. When you shop with a few lenders within the same couple of weeks, it usually counts as one credit check, not many. The lender will ask for simple documents: pay stubs, a job letter, bank statements showing your down payment, your ID, and a list of your debts. Getting pre-approved doesn't cost you anything, and it doesn't commit you to that lender.
One last thing, because the timing matters right now: the Bank of Canada announces its next rate decision on October 28. A pre-approval with a rate hold means your rate is protected while you shop — no matter what happens on the 28th.
So: pre-approval first, house hunting second. That's not bureaucracy — that's me protecting you from day one.
— Paola Cano & Jose Ramirez, Thrive Realty Group Inc., Brokerage, London, Ontario.
Data from: Bank of Canada policy rate 2.25%, next decision October 28, 2026; nesto mortgage data (October 2026).