Mortgage pre-approval: rate holds and the rate you'll qualify at
A pre-approval is a lender's estimate of how much you can borrow, often with a rate hold that protects you if rates rise while you shop. You qualify at the greater of your contract rate plus 2 points or 5.25%: at today's lowest collected 5-year rate (4.34%) that is 6.34%.
What a pre-approval is (and isn't)
It's a conditional estimate based on your income, debts and credit. The final approval still depends on the property, an appraisal and verifying your documents.
Rate holds
Many lenders will hold a rate for a set number of days (often stated in their rate fine print). If rates rise before you buy, you keep the held rate; if they fall, ask for the lower one. With the Bank of Canada having raised rates in October 2026, a hold is worth having.
The rate you qualify at
| Rate | Contract | Qualifying rate | Monthly on $500k at qualifying rate |
|---|---|---|---|
| 3-year fixed, insured | 4.19% | 6.19% | $3,255.72 |
| 3-year fixed, uninsured | 4.49% | 6.49% | $3,346.09 |
| 5-year fixed, insured | 4.34% | 6.34% | $3,300.77 |
| 5-year fixed, uninsured | 4.59% | 6.59% | $3,376.44 |
Documents to gather
- Photo ID; recent pay stubs and an employment letter, or two years of tax returns and notices of assessment if self-employed.
- Proof of your down payment (recent account statements), and a gift letter if family is helping.
- Details of debts: car loans, student loans, cards, support payments.
| Mortgage | $500,000, 25 years |
|---|---|
| Contract rate | 4.34%lowest collected 5-yr rate |
| Qualifying rate | 6.34%greater of rate + 2 or 5.25% |
| Payment at the contract rate | $2,723.07 |
| Payment lenders test you at | $3,300.77 |
What this means for you
- Get pre-approved before you shop: you'll know your limit at the stress-test rate and lock a rate.
- Check the hold's expiry: if you haven't bought by then, ask for a new hold at the current rate.
Frequently asked questions
Does a pre-approval guarantee a mortgage?
No. It's conditional on the property, an appraisal and verification of your documents.
What rate do I qualify at?
The greater of your contract rate plus 2 points or 5.25%, for both insured and uninsured mortgages from federally regulated lenders.
Primary sources
- OSFI — Minimum qualifying rate for uninsured mortgages (effective January 29, 2026). Checked .
- Department of Finance Canada — Statement on the Canadian housing market (insured qualifying rate) (effective December 12, 2023). Checked .
- Financial Consumer Agency of Canada — Choosing a mortgage. Checked .