Turning the Pre-approval into a Firm Deal

As mentioned, a pre-approval is a good to way to know what mortgage amount you will qualify for based on your income, your credit history and your down payment. However, it's not an actual firm deal. After you have selected your property and made an offer conditional upon financing, your pre-approval becomes a "live deal". Your mortgage specialist with resubmit your pre-approval to the mortgage lender with the property information attached.

If you have 25% or more of a down payment on your home, the mortgage lender will be adjudicating the property based on their criteria. If your down payment is less than 25% the lender will be adjudicating the property based on CMHC's guidelines.

Once the mortgage lender has approved the property, and you are confident that you can meet all the conditions, you can then waive the condition of financing and you bought your new home!