Pre-approval
Borrower-focused preliminary review
Final approval
Borrower + property + transaction
Rate hold
Not the same as approval
Re-verification
Can occur before funding
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The three levels Realtors should distinguish
The word 'pre-approved' is used loosely in the market. One buyer may have completed only an online affordability estimate, another may have had credit reviewed, and another may have supplied full income and down-payment documents to a mortgage professional. FCAC notes that lenders use different definitions and processes, which is why the label alone does not tell a Realtor how much underwriting has actually occurred.
For practical purposes, distinguish an estimate or pre-qualification, a document-backed borrower review, and a property-specific lender approval. Only the last category evaluates the actual purchase and collateral.
- Estimate/pre-qualification: useful for planning but may rely heavily on stated information.
- Document-backed review: stronger borrower analysis, but no specific property has been approved.
- Property-specific approval: lender reviews the executed purchase, property, valuation and transaction terms.
What can change after pre-approval
Approval can change when the purchase price, property taxes, condo fees, down payment, closing date, employment, credit or debt load changes. It can also change because the selected property does not meet a lender or insurer's guidelines.
A common mistake is treating the pre-approved maximum as a guaranteed shopping budget. FCAC explicitly states that the final approved mortgage depends on the property value and down payment, and that a lender can refuse a mortgage even after pre-approval.
Five useful questions before serious offer writing
A Realtor does not need the buyer's private financial details to understand whether the financing process is mature. With the client's permission, simple process questions can reveal whether the buyer should speak with the mortgage professional before bidding.
- Were income and down-payment documents actually reviewed?
- Has credit been reviewed where appropriate?
- What purchase range was tested under the current stress-test rules?
- Has the mortgage professional been told the property type and intended occupancy?
- Are there known lender or insurer conditions that could affect offer strategy?
Tell buyers not to materially change the file before closing
A lender may re-check employment, credit, liabilities or documents before funding. Buyers should generally avoid taking on new debt, financing vehicles or furniture, changing employment, moving down-payment funds without a traceable record, or making other material financial changes without first discussing them with their mortgage professional.
This is especially important between condition removal and closing, when the buyer is contractually committed but the lender may still have funding conditions.
Realtor + mortgage coordination
Have a client who needs a mortgage review?
Use the Realtor referral pathway for a consented introduction. Do not upload tax returns, bank statements, credit information or other borrower financial documents through the referral form.
Refer a clientFrequently asked questions
Is a mortgage rate hold the same as a pre-approval?
No. A rate hold may protect a rate for a period but does not by itself prove that the borrower or a future property satisfies the lender's underwriting requirements.
Can a lender decline a buyer after pre-approval?
Yes. FCAC states that pre-approval does not guarantee approval. The lender can still assess the specific property and updated borrower information.
Should a Realtor see the buyer's full mortgage documents?
Usually that is unnecessary. The mortgage professional should handle sensitive financial documents. Realtors can coordinate process and transaction information while respecting confidentiality.
Primary sources
Mortgage, real-estate and new-home rules can change. These resources are educational and do not replace legal advice, your brokerage policies, a lender decision or a property-specific mortgage assessment.