Mortgage Pre-Approval

Quick Definition

A lender's conditional commitment to lend up to an amount at a held rate.

Full Explanation

A mortgage pre-approval is a lender's written statement of how much it will likely lend you, usually with a rate hold of 90–120 days. It is conditional on verifying your documents and the property. It helps you set a realistic budget before house hunting.

Related Terms

Mortgage Stress Test

A Canadian requirement to qualify for a mortgage at a higher rate than the contract rate.

Down Payment

The upfront cash you pay toward a home purchase, expressed as a percentage of purchase price.

Ready to put this knowledge to use?

Use our free calculators to model your situation based on what you've just learned.

Explore Calculators Compare Lenders