The Benefits of Pre-Approval in Manitoba’s Housing Market
By Avaljit Sandhu, Dominion Lending Centres
Buying a home is one of the biggest financial decisions you’ll make, and preparation is key—especially in Manitoba’s competitive housing market. One essential step before you start house hunting is getting a mortgage pre-approval. This simple process offers clarity, confidence, and a stronger position when making an offer.
Let’s explore why pre-approval is a must for Manitoba homebuyers.
1. What is Mortgage Pre-Approval?
Mortgage pre-approval is a process where a lender reviews your finances to determine how much you may qualify to borrow for a mortgage. Once pre-approved, you receive a conditional commitment that outlines:
-
The maximum mortgage amount you’re eligible for
-
The estimated interest rate
-
The term and type of mortgage
-
How long the rate hold is valid (usually 90 to 120 days)
2. Why is Pre-Approval Important in Manitoba?
2.1 You Know Your Budget
The housing market in Manitoba, especially in cities like Winnipeg, can move fast. Getting pre-approved helps you:
-
Shop within your price range
-
Avoid falling in love with homes outside your budget
-
Understand your monthly payments in advance
2.2 You Can Act Fast in a Competitive Market
In a hot market, pre-approved buyers are taken more seriously. Sellers are more likely to accept an offer from someone who’s already spoken to a lender. It shows you’re a serious, qualified buyer—ready to move forward.
2.3 You Lock in a Rate
Pre-approvals typically come with a rate hold, which can protect you from rising interest rates while you shop. If rates go up during your house hunt, you still get the lower rate. If rates drop, you may be able to requalify at the better rate.
3. What Do Lenders Review for Pre-Approval?
To get pre-approved, lenders will ask for documents that show your financial picture. This usually includes:
-
Letter of employment and recent paystubs
-
T4s and Notices of Assessment from the past 2 years
-
Credit history and score
-
Down payment source (with 90-day history on bank statements)
-
Your status in Canada (e.g., citizen, PR, work permit)
If you’re on a work permit or a newcomer to Canada, additional documents may be required such as proof of residency, alternative credit history, or extended bank history.
4. Pre-Approval vs. Pre-Qualification
It’s easy to confuse the two, but they are not the same.
| Feature | Pre-Qualification | Pre-Approval |
|---|---|---|
| Based on estimated income? | Yes | No |
| Credit check required? | No | Yes |
| Reliable for house hunting? | No | Yes |
| Rate hold included? | No | Usually yes |
Pre-approval is the one that carries real weight when shopping for a home.
5. How to Get Pre-Approved in Manitoba
Step-by-Step Guide:
-
Speak with a Mortgage Agent – Someone like myself can walk you through the process and explore your options.
-
Submit Documents – Income verification, down payment details, and credit history.
-
Wait for Review – Your application is assessed by a lender.
-
Get Your Pre-Approval Letter – This shows how much you’re qualified to borrow and includes your rate hold.
Frequently Asked Questions (FAQ)
1. Does pre-approval guarantee I’ll get the mortgage?
No, it’s a conditional approval. Final approval depends on the property you choose and any changes in your financial situation.
2. How long does mortgage pre-approval last?
Typically, pre-approvals are valid for 90 to 120 days, depending on the lender.
3. Can I get pre-approved if I’m self-employed?
Yes, but you may need to provide extra documentation such as 2 years of tax returns, Notice of Assessments, and business financials.
4. Does pre-approval hurt my credit score?
It results in a soft inquiry or one hard pull, which usually has a minimal impact. It’s a standard part of the process.
5. Can I still be pre-approved if I’m new to Canada?
Yes, lenders have special programs for newcomers, including those on work permits or with limited credit history. Alternative documentation may be required.
Conclusion
Getting pre-approved is more than just paperwork—it’s peace of mind. Whether you’re a first-time home buyer in Winnipeg or moving to a new neighborhood in rural Manitoba, pre-approval gives you the power to house hunt with confidence. It saves you time, avoids surprises, and gives you a competitive edge.
Ready to get pre-approved?
Let’s chat—I’ll walk you through it and help you prepare for homeownership.