October 22, 2022

The Importance of a Mortgage Pre Approval

When buying a new home, the first step (after talking to your trusted Realtor) is to talk to a mortgage specialist. You wouldn’t walk into Best Buy to purchase a laptop, not knowing if you can actually afford it. So why would you do that when looking at houses?!

Before you start to look for a home; it is critical that you obtain a pre-approval letter from a mortgage specialist. You can talk to a bank directly, or a mortgage broker who works with multiple lending agencies.

Obtaining a mortgage pre-approval allows you to:

  1. Know the maximum amount of a mortgage you could qualify for.
  2. Estimate your mortgage payments.
  3. Lock in an interest rate for 60 to 130 days, depending on the lender.
  4. Close more quickly.
  5. Minimize the trauma of not knowing whether or not you qualify.
  6. Your Mortgage Representative will highlight other closing costs.

I am happy to provide the names and contact information for some of the top mortgage specialists in the city. For the VIP treatment, let the mortgage specialist know that Phillip Williams from Coldwell Banker Power Realty sent you!

Anna Cipollone
Scotia Bank Mortgage Advisor
Aly Jamal, Owner
BNB Financial Group – Mortgage Broker
Robert Placzek

TD Mobile Mortgage Specialist



Nolan Lynch

Dominion Lending Centre – Mortgage Broker



Mortgage Stress Test

You will need to pass a “stress test” in order to qualify for a mortgage loan with federally regulated lenders and credit unions. The stress test exercise ensures that you can afford payments at a qualifying interest rate that is typically higher than the actual rate in your mortgage contract.

This helps ensure that homebuyers won’t take on too much debt and will have the means to make their mortgage payments if interest rates rise or their income decreases.

Current Stress Test Rates:

 5.25% OR the interest rate you negotiate with your lender plus 2%

Government of Canada Mortgage Qualifier Tool


Please reach out if you have any questions regarding the mortgage pre-approval process.

Phillip Williams, Realtor