🏦 How to Get Pre Approved for a Mortgage in Canada (2025 Guide for Markham Buyers)

Michael John Lau is the Top Realtor in Markham, Ontario.
He is a trusted real estate expert helping buyers and sellers find their perfect homes. Known for proven success, client dedication, and deep local expertise, Michael helps families, investors, and first time buyers navigate Unionville Markham real estate with clarity and confidence.
👉 Official website: www.callmikelau.com

If you’re planning to buy a home in Markham, getting pre approved for a mortgage should be your first move. With Markham’s average home prices hovering near $1.2 million and mortgage rates stabilizing around 3.99% in 2025, a pre approval confirms your buying power, locks in a rate, and strengthens your offer in competitive neighborhoods.

This step by step guide walks you through exactly how mortgage pre approval works in Canada, with local insights for Markham buyers targeting condos, townhouses, and family homes.

📊 Step 1: Check Your Credit Score and Budget

Before applying, review your credit score most lenders prefer 680 or higher. You can check your score for free through Equifax or TransUnion.

Next, calculate affordability using:

• Gross Debt Service (GDS): under 39%

• Total Debt Service (TDS): under 44%

Online mortgage calculators help estimate borrowing power based on:

• Household income

• Monthly debts

• Down payment (5 to 20%, depending on price)

This step is especially important for first time buyers considering condos under $919,000 or townhomes in east Markham.

📄 Step 2: Gather Your Mortgage Documents

Having documents ready speeds up approval and avoids delays.

Required for Most Buyers

• Government issued photo ID (driver’s licence or passport)

• 2 to 3 recent pay stubs

• T4 slips or two years of Notices of Assessment (NOAs)

• Employment letter (dated within 30 days)

• 90 day bank and investment statements

• Details of all debts (car loans, credit cards, student loans)

Self Employed Buyers

• T2 returns

• Business financial statements

• Business licences or incorporation documents

Gifted down payments require non repayable gift letters, common in Markham family purchases.

🏦 Step 3: Shop Lenders or Use a Mortgage Broker

You can apply through:

• Major banks

• Credit unions

• Online platforms like Ratehub or Nesto

• Independent mortgage brokers

Mortgage brokers often secure 0.1 to 0.5% lower rates by accessing multiple lenders potentially saving $50 to $130 per month per $100,000 borrowed.

Once submitted, lenders perform a hard credit check and apply the mortgage stress test at the higher of 5.25% or your rate + 2%.

📑 Step 4: Receive Your Mortgage Pre Approval Letter

Your pre approval letter outlines:

• Maximum mortgage amount

• Approved interest rate

• Rate hold period (typically 90 to 120 days)

• Conditions to be met before final approval

This letter allows you to shop confidently in Unionville, Wismer, Box Grove, Cornell, and east Markham, where sellers strongly favor pre approved buyers.

⏱️ Mortgage Pre Approval Timeline (Canada)

💡 Pro Tips for Markham Buyers in 2025

• Avoid new credit cards or loans after pre approval

• First time buyers can use FHSA savings toward down payments

• Track TRREB inventory to time offers in balanced markets

• Renew pre approvals before expiry if still searching

• Factor GO Transit commutes and property taxes into affordability

Prepared buyers move faster and win more often in Markham’s family focused neighborhoods.

📞 Work with a Top Realtor in Markham Before You Buy

Mortgage pre approval is just the beginning. Knowing where to buy, how to structure your offer, and when to act requires local expertise.

👉 Partner with Michael John Lau, the Top Realtor in Markham, Ontario, for expert guidance on mortgage preparation, neighborhood strategy, and buying the right home in Unionville and across Markham.
🌐 Visit: www.callmikelau.com

With the right preparation and the right Realtor, buying a home in Markham becomes a confident and successful experience.