Pre-Qualify for a Mortgage in Minutes

Know before you go. Get pre-approved, fast and simple.

A pre-approval is even better than a pre-qualify. It provides a more accurate picture of what you can afford, and the size of mortgage you'll actually be able to get. Plus, you can hold your best rate for up to 120 days.

House hunting? We approve (literally).

It's easy. Your quick pre-approval at your best rate is kind of a no-brainer.

When venturing out, having your pre-approval in hand is essential. It helps you know what mortgage size you can afford. More importantly, it gives you the confidence to make realistic (and exciting) decisions as you look for a home or vacation property.

Why us? At True North Mortgage, you get pre-approved in no time flat. We quickly walk you through what you need. Then we check with all lenders (including your bank), pass along our volume discount, and hold your best rate (that you qualify for) up to 120 days, protecting you from any sudden rate increases. That way, you can hunt around for the right place, knowing that your great rate (to save a pile of cash) is secure.

Mortgages are all we do. More than better rates, when you find the property that sings your song, you'll get the right mortgage for your unique situation.

But don't just take our word for it — check out our 5-star reviews from clients thrilled with our lower rates and money-saving advice. And with over $13 billion in funded mortgages under our belt, we're standing by to provide you with unbeatable service.

At True North Mortgage, your (on-the-money) pre-approval is:

  • FREE, no obligation, and stress-free
  • Kept on secure servers for your privacy
  • Guaranteed to be your best interest rate for up to 120 days (depending on the lender)
  • Fast and easy — our short form takes only 9 minutes to complete

Our True North Mortgage Brokers are highly-trained and easy to get a hold of — real people here to help you get your best mortgage fit. You'll need to provide accurate information and supporting documentation (we'll walk you through the process).

The six factors that lenders use to qualify you for a mortgage loan:

  • Your income
  • Your debts
  • Your employment history
  • Your credit history
  • The property value
  • Your proof of identity

We'll help you assess and understand how a lender views your loan application, and what they look for in terms of a strong application.

A strong loan application will have these features:

  • A housing expense ratio no greater than 39% (now optional, but the lower the ratio, the better)
  • A debt-to-income ratio no greater than 44% (the lower the ratio, the better)
  • The home buyer has steady income (ideally, the same job for two years or longer)
  • The home buyer has good credit (bills have been paid on time)
  • The house is worth the price the buyer is paying

Your Income

A lender will consider how much of your total income will be spent on housing, to decide what you can comfortably afford. If your house payment represents a larger portion of your income, you're more likely to have trouble making these payments in light of other potential expenses (such as cars, furniture, and home maintenance or upgrades). On the other hand, if the house payment is a smaller portion of your income, chances are better that you can truly afford the house over the long term.

When you're applying for a mortgage, a lender looks at your 'gross income' (the money you earn before taxes, including overtime, commissions, dividends and any other sources). And they'll want to see a steady history for these income sources. For example, many lenders will count income from a part-time or seasonal job, as long as you can show that you've had that job for at least two years.

The lender will also compare your current housing expenses to your potential new home expenses. The smaller the increase, the stronger your application.

More on why your Income Matters

Your Debts

In addition to your income, a lender will look at your debts owing. Your debts include your house payment and other loans (such as cars, credit lines, charge cards, and child support) that you may make each month.

If you’re overloaded with debt, we can help you consider whether taking equity from your home to consolidate your debts would be a viable, cost-saving option.

More about your Refinancing Options

Your Employment History

You don't need to be wealthy to qualify for a mortgage, but a history of steady employment in any occupation helps. Lenders are more likely to lend money to those who have worked for several years at the same job, or at the same type of job. However, if you've only been in your current job a short while, this won't necessarily stop you from getting the loan, as long as you've had regular income over the last year.

The lender will check your employment, usually by asking you for a signed letter from your employer that states how long you've been on the job and how much money you earn. If you're self-employed, or if you've been at your job less than two years, the lender may ask you for additional information (such as federal income tax statements) that show your income and work history.

A lender considers these questions when reviewing your loan application:

  • Have you been at the same job for at least two years?
  • Have you been in the same occupation for at least two years?
  • Have you had gaps in your income over the last two years?
  • How long do you expect to stay in your current job?
  • Is the co-borrower (if any) employed?
  • If either you or a co-borrower suddenly becomes unemployed, how long would you be able to make your mortgage payments?

Your Credit History

Good credit is important in qualifying for a mortgage. In addition to your ability to pay (as indicated by your debts and income), a mortgage lender will look at your willingness to pay. This is judged by your credit record — how well you've paid your loans and other debts. It's a good idea for you to order a copy of your report (before applying for a mortgage, if possible), so that you're already aware of its contents.

When you apply for a mortgage loan, the lender will order your credit report. If you've never had a loan or a charge card, they'll look at your record of payment for utility bills and rent.

The Property's Value

When you choose a home, the lender will want to ensure that the house is worth the price you plan to pay, as the loan amount approved is based on the value of the property. The home's value is the lender's best assurance that they can recover the money, even if you stop making mortgage payments. If you do stop, the lender has the right to sell your home to pay off the loan — a process called 'foreclosure.'

It's very important to have a professional appraisal of the value of the home you plan to purchase, for your protection as well. If you decide to sell your home before you finish paying off your mortgage loan, you'll want a price that allows you to pay back the loan balance, and perhaps make a profit as well.

Your Proof of Identity

Identity theft is a growing problem in Canada for both individuals and for lenders. To help ensure that no one is falsely using your identity to borrow money elsewhere for a home, our expert True North Mortgage broker will ask to see your photo identification. We may also ask you questions about your credit history to confirm the information on record.

Get peace-of-mind (aka pre-approved) at your best mortgage rate. Connect with us today.

Your easy pre-approval is right here.